What is HSN code in tax?

HSN code stands for “Harmonized System of Nomenclature”. This system has been introduced for the systematic classification of goods all over the world. HSN code is a 6-digit uniform code that classifies 5000+ products and is accepted worldwide.

Is HSN code mandatory for B2B invoices?

Businesses with aggregate turnover above 5 crore INR in the last financial year must issue the 6-digit HSN codes on both B2B and B2C invoices.

Is HSN mandatory in GST?

𝐇𝐒𝐍 / 𝐒𝐀𝐂 𝐂𝐎𝐃𝐄 𝐌𝐀𝐍𝐃𝐀𝐓𝐎𝐑𝐘 𝐅𝐑𝐎𝐌 𝟎𝟏𝐬𝐭 𝐀𝐏𝐑𝐈𝐋 𝟐𝟎𝟐𝟏 The Taxpayers whose aggregate Turnover is up to Rs. 5 crores in the preceding Financial Year HSN / SAC code of 4 digits is mandatory for all the B2B tax invoices and optional for B2C tax invoices on the supplies of Goods and Services.

Is HSN mandatory for services?

It will be mandatory to specify the number of digits of HSN code for goods or services that a class of registered persons shall be required to mention as may be specified in the notification issued from time to time under proviso to rule 46 of the said rules. As per Notification No. 12/2021 –Central Tax , dt.

What is the GST rate for HSN code?

Under GST, all goods and services transacted in India are classified under the HSN code system or SAC Code system. Goods are classified under HSN Code and services are classified under SAC Code. Based on the HSN or SAC code, GST rates have been fixed in five slabs, namely NIL, 5%, 12%, 18% and 28%.

Who can use 4 digit HSN code?

The HSN codes for mandatory mapping/classification of goods that need to be used by a taxpayer are as follows; >Taxpayers whose turnover is Rs. 5 crore and above shall use 4 digit HSN code, >Taxpayers whose turnover is above Rs.

Is HSN code mandatory for turnover less than 2 crore?

Whereas, the description is optional for taxpayers who are required to furnish HSN/ SAC codes on the basis of aggregate turnover as below: Less than Rs. 1.5 crores – HSN/SAC code is not mandatory (Hence, composition dealers may not be required to specify HSN at 2-digit level also).

Who can use 8 digit HSN code?

HSN codes of 8 digits are mandatory only in case of export and imports of goods. A registered person having aggregate turnover up to Rs 5 Cr in the previous FY may not mention the number of digits of HSN Code in a tax invoice issued by him under the said rules in respect of supplies made to unregistered persons.

What is the penalty for not filing HSN code in GST?

As per section 125:- If a taxpayer does not enter his HSN code in the GSTR-1 column then a penalty will be imposed on 25000 of CGST and 25000 = 50000 of SGST.

Which states replace GST taxes?

Goods and Service Tax
Since the Goods and Service Tax is levied at the point of consumption, the entire tax revenue will go to Karnataka and not Maharashtra.

How do I calculate GST amount?

How to Track the GST Payment in GST Portal?

STEP 1: Access the GST Portal.
STEP 2: Click the Services> Payments > Track Payment Status option.
STEP 4: In the Enter CPIN field, enter your CPIN.
STEP 5: Type in the characters as displayed below field, enter the captcha text.
STEP 6: Click the TRACK STATUS button.

What are the tax rates under HSN?

Some of the tax rates are decreased from 28% to 18% and some of the goods tax rates are shifted to 5% from NIL. HSN stands for “Harmonized system of Nomenclature” which was developed by the World Customs Organisation (WCO).

What are HSN codes in GST and how to use them?

In such cases, HSN codes remove any room for misinterpretation. It ensures precise classification, as well as the tariff, levied on the products. HSN codes in GST usage give business owners an advantage because the taxation is completely automated.

What are the benefits of HSN codes?

By using HSN codes, there is no need to upload a detailed description for each good falling under the GST. This allows for the automation of GST returns, saving time and money for the tax authority. Get in touch with our Freight Forwarding networking team here.

When was the HSN code adopted in India?

HSN code was officially adopted in full force in India after the introduction of the well-researched taxation reforms, the Goods and Services Tax Act. However, the Central Excise and Customs Regime has been using it since its inception (1988), as India has been a member of the World Customs Organization since 1971. This was the 6 digit code.