Table of Contents
Can 2 products have same HSN code?
Due to very specific nature of industry the gst rate for the same product when sold to a defense customer in India and to an aerospace firm are different due to which even the HSN codes are different. However in material master we can maintain only one HSN code.
Is HSN code is different for different products?
Harmonized System of Nomenclature number for each commodity is accepted by most of the countries. The HSN number remains same for almost all goods. However, HSN number used in some of the countries varies little, based on the nature of goods classified.
Is HSN code universal?
HSN is a six-digit code that classifies more than 5000 products, arranged in a legal and logical structure. To achieve uniform classification, the HSN is supported by well-defined rules and is accepted worldwide.
What is the limit for HSN code?
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). Rs. 1.5 crores to Rs.
What is difference between HSN and SAC code?
The basic difference between the HSN and SAC code is that HSN is used to identify the Goods and SAC codes are used to identify the services. Another contrast between the two is the number of digits present in the code, for instance, HSN number has 8 Digit codes while SAC number has 6 digit codes.
How many HSN codes are required for GST?
six
New Delhi: The Ministry of Finance has said that GST taxpayer with turnover of more than Rs 5 crore will have to furnish six-digit HSN or tariff code on the invoices issued for supplies of taxable goods and services. The rule has been effective from April 1, 2021.
How do I add more than 5 HSN codes?
If you want to amend the HSN codes mentioned in GST registration, then you need to file an amendment application for Non-Core Fields. This application can be filed easily on GST portal.
Can I include 4 digit HSN code in my invoices?
Answer is Yes and No, depending on the context, while creating GST compliant invoices, you can also mention 4 digit HSN code, if the subheadings have the same Rate (Ex. 12\%, ), but if the Sub heading of the chapter have multiple GST rates as mentioned in the CBEC/GST gst rate card then it has to be mentioned clearly.
Are there multiple GST rates for HSN codes?
Yes, as the HSN code is a prefix for the goods and services and further the goods may be classified according to the different types of offers, this makes the probability of multiple GST rates.
What are the features of HSN codes?
This is one big feature of HSN Codes. This feature of the HSN Code increases its value in the GST system, that it is used as a base for deciding the GST Rate of the goods. The HSN Code is used in Invoices, e-Way Bills as well as in GST Filing.
What happens if the first 2 digits of HSN are wrong?
To ensure that this leniency is not being misused or taken for granted the Government studies the cases before actually taking action. No penalty or actions shall be taken if the first 2 digits of the 4-8 level of HSN code are correct & the Tax rates are mentioned accurately.