Dealers having turnover of more than 5 crore rupees shall be required to adopt a four-digit HSN Code For imports or exports, it is mandatory to have an eight-digit HSN Code, irrespective of the turnover as the GST HSN Code must be compatible with applicable international practices and stand...
In exports, the ITC-HS Codes are mandatory. It is compulsory to mention the 8 digit HSN Code on the shipping bill, failing which the export benefits shall not accrue. In GST however, HSN Codes are not mandatory for businesses with a turnover of less than Rs 1.5 cr or if the dealer ...
HSN Code System Under GST With the introduction of GST, HSN codes are implemented through a 3-tiered system: Turnover under ₹1.5 crore: No requirement to use HSN codes. Turnover between ₹1.5 crore and ₹5 crore: Mandatory use of 2-digit HSN codes. Turnover over ₹5 crore: Requ...
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. 1.5 crore but below Rs. 5 crore shall use 2 digit HSN cod...
HSN code was introduced to make the GST systematic. While filing the GST returns, the taxpayers do not need to mention the description of the goods but instead mention the HSN code. The CBIC has also stated that mentioning HSN code is now mandatory in GSTR-1, if you are in the turnove...
A minimum 6-digit HSN code is compulsory for taxpayers with an Annual Aggregate Turnover (AATO) of Rs. 5 crores and above from December 15, 2023, per the latest GST e-Invoice System mandate. The update states as follows:“Atleast 6-digit HSN will be mandatory in ...
The main difference between HSN and SAC codes is that HSN codes are meant only specifically for goods and services, and SAC codes specify for services only. Other, difference is in the number of digits in their code and their relevance. Example - HSN Code is an 8-digit code, and SAC co...
Import and export dealings, as well as foreign trades, require the use of 8-digit HSN codes for entrepreneurial ventures Update for 2021: Notification No. 78/2020 – Central Tax, dated 15.10.2020 has been issued to make HSN code mandatory up to 4 digits in the B2B invoices with effect fr...
Since from 1st April 2021 it is important for the GST assessee who posses the turnover exceeds 5 cr in the before fiscal year, to file 6 digits HSN Code (Harmonised System of Nomenclature Code), or as the case may be, SAC (Service Accounting Code) upon t
HSN Code System Under GST With the introduction of GST, HSN codes are implemented through a 3-tiered system: Turnover under ₹1.5 crore: No requirement to use HSN codes. Turnover between ₹1.5 crore and ₹5 crore: Mandatory use of 2-digit HSN codes. ...