Sage-Tips

What happens if HSN code is wrong?

In case of non-mentioning or mentioning wrong HSN code under the Goods and Service Tax Act, the penalty of INR 50,000/- ( INR 25000/- for CGST and SGST each) shall be levied.

Can I amend HSN code in GST?

Yes you can amend your GST registration and add new HSN Code. This type of amendment will be of non-core field. The amendment will get effective on filing the application.

Can one HSN code have different GST rates?

it has been clarified that though both machine and parts are classified under the same HSN upto 4 digit, the rate of GST is different. In the instant case, though the HSN 8504 has two rates 18\% and 28\%, the rate of GST is 18\% as per serial number 453 of Schedule III which is correct.

Can I change HSN after GST registration?

Starting at a GST Taxpayer’s page, you’ll find a link to ‘Product Codes’. Clicking on the link would take you to the page listing the products. You can add a new product by clicking on ‘New Product Code’. Specify a unique code to identify the product.

Is HSN code compulsory in GST return?

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.

Is it compulsory to mention HSN code?

Under GST law, the HSN code to be used by a taxpayer for classification of goods will be based on the taxpayer’s turnover. The HSN code needs to be declared on the tax invoice and also to be reported while filing the GST returns. 1.5 crore are not required to mention HSN code in their invoices.

How do I change my HSN code on GST?

To configure this, Go to “Accounts Information” > “Groups” > click on “Create” > Select the “Sales Group” (Select the ledger group for which you want to set up HSN code) > Against “Set/ alter GST details”, enter “Yes” and enter the HSN code here.

Can different items have same HSN code?

Different countries may have different versions of the HS code list, but at least the first 6 digits are fully harmonised. You can find a good website to lookup the code for your product here.

Can one item have multiple 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.

How do I change my HSN code?

Then you can specify different HSN codes for item D and E at stock item level. To configure this, go to “Inventory Information” > “Stock Item” > click on “Create” > Against “Set/alter GST details”, enter “yes”. Click on the “Tax rate history” button on the right side and enter the relevant HSN code here.

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.

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.

Is it possible to have multiple GST rates for the same chapter?

Yes, one Chapter under HSN can have multiple GST rates. However if you go with 4 or 6 digits HSN Code then they will have only 1 rate of tax. Yes, it is possible to have multiple GST rates for the same HSN code. For example HSN code 61 has two tax rates 5\% and12\%.

What is the first two digits of HSN code?

The first two digits ( 39) indicates the chapter under HSN codes. The next two digits ( 08) indicates the headings under chapters. Next 2 digits ( 90) indicates the sub-headings, 6 digits HSN code is accepted worldwide. The next 2 digits ( 10) sub-classify the product tariff heading during import and export of supply.