PENALTY with effect 01st april 2021 cbic notifies that a dealer registered under gst has to mention 4 digit of harmonised system of nomenclature code (hsn code) if his aggregate turnover in the preceding financial year is up to rupees five crores and he has to mention 6 digit of hsn code if turnover in the preceding financial year is more than rupees may use HSN code at 6- digit or 8-digit level if he so desires. E.g., 12/2017 - Central Tax . Penalty of INR 50,000/- (INR 25,000/- each for CGST and SGST) can be levied for non-mentioning or mentioning wrong HSN/ SAC Code under Section 125 of the Central Goods and Notification 90/2020 amends Notification 12/2017 and . On 28th June 2017, CBIC changed the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.12/2017 Central Tax. Aggregate turnover in the preceding year upto 5 cr - Required to mention HSN Code upto 4 digits; Aggregate turnover in the preceding year more than 5 cr - Required to mention HSN Code upto 6 digits Initial 99 means the code is SAC code, If code 99 is provided then it means the supply is in the . Therefore, HSN Code 2910.40 shall not be a valid HSN Code. HSN Digits from 01st April 2021 The government has amended the GST notification 12/2017 on 15th October 2020. It is used to identify goods for Customs and Central Excise using 6-digit HSN codes. The Goods and Services Tax Network has issued an Advisory dated July 20, 2022, regarding the implementation of mandatory mentioning of HSN codes in GSTR-1. Hence from above it's being very clear that Reporting HSN is in Tax Invoice & the particular in tax invoice need to be mentioned as accordingly in GSTR 1. For better identification of goods, India and a few other countries use eight-digit codes for deeper classification. A taxpayer having turnover of upto Rs 5 crore in the preceding financial year is required to mandatorily furnish 4 digits HSN code on B2B invoices. The next 2 digits (90) indicate the sub-headings, 6 digits HSN code is accepted worldwide. With effect from the 1st April, 2021, it has been made mandatory for a GST taxpayer, having turnover of more than Rs 5 crore in the preceding financial year, to furnish 6 digits HSN Code (Harmonised System of Nomenclature Code), or as the case may be, SAC (Service Accounting Code) on the invoices issued for supplies of taxable goods and services. 5408. April 1, 2021. Arun Kumar Singh (GST Advocate) (14895 Points) Replied 03 April 2021. In accordance with Notification No. 2. with effect from the 1stapril, 2021, it has been made mandatory for a gst taxpayer, having turnover of more than five crore rupees in the preceding financial year, to furnish 6 digits hsn code (harmonised system of nomenclature code), or as the case may be, sac (service accounting code) on the invoices issued This 6-digit uniform code can be used to classify more than 5,000 products and is also used for classification for tax purposes. . Similarly, in case a 6-digit HSN code is searched, the related 8-digit HSN code will also be shown. ; box files, letter trays, and similar articles, of paperboard of a kind used in offices, shops or the like Customs and central excise later added two more digits to push the HSN code search forward to more reliable discrimination. The next two digits ( 08) indicates the headings under chapters. Firstly go to the search engine and search E-waybill Portal- ewaybillgst.gov.in. This 6 digit HSN Code can be utilized to classify more than 5 thousand commodities and is further applied for tax objectives classification. Implementation of mandatory mentioning of HSN codes in GSTR-1 1. This has reference to CGST Notification No. 78/2020 - Central Tax dated 15th October, 2020, it is mandatory for the taxpayers to report minimum 4 digits or 6 digits of HSN Code in Table-12 of GSTR-1 on the basis of their Aggregate Annual Turnover (AATO) in the preceding Financial Year. The compulsion of 6 Digit HSN on GST Invoice for a certain category of items. 5. Replied 03 April 2021. April 1, 2021: 78/2020 from below link. This 6-digit HSN code can be utilized to classNameify more than five thousand commodities and is further applied for tax objectives classNameification. Taxpayers are therefore advised not to create 6-digit HSN code by truncating/removing the last two digits (including "00") of a valid 8-digit HSN code. Other difference between both of them is the number of digits in their code and their relevance, for example, HSN code has 8 Digit codes whereas SAC has 6 digit codes. Declaration of 4 or 6 digit HSN code was made mandatory in GST invoice from 01.04.2021 and later a list of 4 and 6 digit HSN and SAC code was released by CBIC for tax payers. Against notification No.14/2020 - Central Tax, dated the 21st March, 2020. This 6-digit HSN code can be used to classify more than 5 thousand items and is further applied for classification of tax purposes. As per Harmonized System of Nomenclature accepted world wide, normally 6 digit HSN code is accepted worldwide. 78/2020 -Central Tax. Share. (WCO) since 1971. 2. [F. No.349/72/2017-GST] (Dr. Sreeparvathy S.L.) Manufacturers, importers and exporters have been using HSN codes for a long time now. The HSN code for other products under ferro-alloys is 72.02.99. It was originally using 6-digit HSN codes to classify commodities for Customs and Central Excise. Where the handkerchiefs are made from a human-made fibre, then the HSN code becomes 62.13.90.10. Customs and central excise later added two more digits to push the HSN code search forward to more reliable discrimination. In this effort, a discover feature has been provided to users on the DGFT Website Home Page to explore the Import and Export Policy for various 8-Digit HS Codes. The first two digits ( 39) indicates the chapter under HSN codes. Businesses with turnover between INR 1.5 Crore & 5 Crore use 2-digit . However, in most of the countries additional two digit HSN code is added at . Then search by entering HSN and sac code or search by product name. New provisions have following additional requirements as compared to previous provisions:- HSN code to be given upto 6 digits (earlier, it was 4 digits) by registered persons having turnover exceeding Rs 5 crores. 8 Replies. Fill the all other mandatory fields i.e . HS Codes - Harmonized System Code list by Connect2india. 5407. Later Customs and Central Excise added two more digits to make . HSN stands for Harmonised System of Nomenclature code. 90/2020 - Central Tax, dated December 01, 2020 to provide for class of supply- 'Chemicals' whose HSN Code are required to be mentioned at 8-digit on the tax invoices. HS Code Description 1 1 Live animals 2 10 Cereals 3 1001 Wheat and meslin 4 100110 Durum wheat 5 100111 Cereals // Wheat and meslin. G.S.R. While notifying the HSN Code for these products, the Central Board of Indirect Taxes and Customs (CBIC) said, "A registered person shall mention eight number of digits of HSN Codes in a tax invoice. Central Board of Indirect Taxes and Customs. New Delhi, the 15th October 2020. Implementation of mandatory mentioning of HSN codes in GSTR-1 1. Find your HSN - Click here. Ministry of Finance (Department of Revenue) (Central Board of Indirect Taxes And Customs) New Delhi, Notification No. To view the detailed notification, please click here. Notification No. This is a 6-digit code that classifies various products. Notification No. However, now in a recent tweet it can be seen that HSN/ SAC code has been made mandatory from 01.04.2021 for invoice and this shall be made applicable on supplier of goods as well as service. The Central Board of Indirect Taxes and Customs (CBIC) stated that 8 digit HSN Code is important for particular goods such as chemicals used for several things to manufacture. . Based on such 4 digit HSN codes, the sub classification is done as 6 digit HSN code. Earlier, the 8 digit HSN code was mandatory to be included in GST Invoice only for taxpayers with turnover above RS. 78/2020 - Central Tax, dated October 15, 2020, mandates taxpayers to declare specified digits, as follows, of Harmonised System of Nomenclature (HSN) / Service Accounting Code (SAC) Code on raising of tax invoices, w.e.f. 89/2020-Central Tax dt.29.11.2020: Penalty waiver for not generating Dynamic Quick Response (QR) till 31st March 2021. This comes into effect from April 1. Earlier, the requirement was 4 digits and 2 digits respectively," an official release said. Subsequently, the above notification was amended vide Notification No. In the said rules, for rule 67A, the following rule shall be substituted . Woven fabrics of artificial filament yarn, including woven fabrics obtained from materials of heading 5405. 78/2020 - Central Tax dated 15th October, 2020, it is mandatory for the taxpayers to report minimum 4 digits or 6 digits of HSN Code in Table-12 of GSTR-1 on the basis of their Aggregate Annual Turnover (AATO) in the preceding Financial Year. .. (E).. SWATI BHATNAGAR (34 Points) 5 crore. Under Secretary to the Government . GST HSN Code List PDF 2022 , . AA. Next 2 digits ( 90) indicates the sub-headings, 6 digits HSN code is accepted worldwide. The revamped Search HSN tool algorithm is based on Artificial Intelligence and Machine Language linked with e-invoice declaration database. Upto rupees one crore fifty lakhs Nil 2. more than rupees one crore fifty lakhs and upto rupees five crores 2 3. more than rupees five crores 4 2. The said changes are effective from 01st April 2021. Under GST, tax slabs have been set at 0%, 5%, 12%, 18% and 28% . Vide Notification No. It is mandatory to specify the number of digits of HSN Code for goods & Services. HSN is "Harmonized System of Nomenclature", a 6 digit uniform code that was developed by the World Customs Organization (WCO) which was introduced to classify 5000+ products. You can search and find HSN Codes, SAC Codes and GST rates of goods and services under GST in India. 5 crores, HSN code is mandatory up to 6 digits in invoices with effect from 01.04.2021. Taxpayers can also view other HSN Codes related to the search. The HSN code contains 21 sections. Vide Notification No. Now make a note that all SAC code starts with 99. CBIC vide Notification No.78/2020 - CT dated 15.10.2020 has replaced the old reporting requirement of HSN on invoices with the below one. Businesses dealing with exports and imports must use 8-digit HSN codes. Businesses with Turnover of up to INR 5 Crore in the Financial Year 2020-21 would be required to furnish 4-digit HSN code on B2B invoices. Vide Notification No. Understanding how HSN Code is used in India Since 1971, India has been a member of WCO and was using 6-digit HSN codes to classify goods for Customs and Central Excise since 1986. 78/2020 - Central Tax, dated October 15, 2020 to mandate 4/6- digit HSN/SAC Code on supply of goods or services on the tax invoices w.e.f. Manufacturers were furnishing these codes even in the pre-GST regime. Therefore taxpayers are advised to be ready with 6 digit HSN / SAC codes for their applicable goods or . HSN codes for goods at 6 digits are universally common. Vide Notification No. Answer (1 of 6): It is very essential for a distributor to carefully select the HSN code of their product at the time of migration and / or the new registration under GST. The HSN Code came into effect from the year 1988 and is accepted worldwide. 6 digit HSN Code on pickles Jams Chutneys? Customs and Central Excise eventually added two extra digits to the HSN codes to make them more accurate, resulting in an 8-digit categorisation. HSN CODE AND ITEM NAME. if you want to know more details about HSN Code for Furniture; bedding, mattresses, mattress supports, cushions, and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings then click for the source link- HSN pdf. For the taxpayers whose turnover in the preceding financial year is more than Rs. 12/2017-Central Tax dated June 28, 2017 was again amended vide Notification No. This 6-digit HSN code can be used to classify more than 5 thousand items and is further applied for classification of tax purposes. 18%. After then you will get detail of the code. 78/2020 - Central Tax. These are divided into 99 chapters which are divided into 1244 sections. 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