Is HSN code 6 digit or 8 digit?

Is HSN code 6 digit or 8 digit?

In Customs Tariff, HS code is prescribed as heading (4 digits HS), sub-heading (6 digits HS) and tariff items (8 digits).

What is HSN 6 digit code by WCO?

HSN code is a 6-digit uniform code that classifies 5000+ products and is accepted worldwide. It was developed by the World Customs Organization (WCO) and it came into effect from 1988.

Is 6 digit HSN code mandatory?

78/2020 – Central Tax, dated 15 October 2020) issued by Central Board of Indirect Taxes and Customs to make HSN code mandatory up to 6-digit. …

Is HSN an 8 digit code?

Traders would mostly be using HSN codes furnished in the invoices issued to them by the manufacturer or importer suppliers. As such, a large number of GST taxpayers are already furnishing HS codes/SAC at 6/8 digits on voluntary basis on the invoices, e -way bills and GSTR 1 returns.

Who is eligible for HSN code?

HSN/ SAC codes The taxpayers who have turnover below the limit of Rs 1.5 Crore will have to mention the description of goods/service in place of code. 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.

Is 8 digit HSN code mandatory?

HSN Code/ Service Accounting Code mandatory on invoices as per revised requirement from 1st April 2021 for GST taxpayer with turnover of more than Rs 5 crore. In Customs Tariff, HS code is prescribed as heading (4 digits HS), sub-heading (6 digits HS) and tariff items (8 digits).

Who needs HSN code?

The Taxpayers whose aggregate Turnover is more than Rs. 5 crores in the preceding Financial Year HSN / SAC code of 6 digits is mandatory for both B2B and B2C tax invoices on the supplies of Goods and Services.

Who can use 2 digit HSN code?

2-digit HSN code for goods From the second year of GST operations, mentioning 2-digit chapter level HSN code will be mandatory for all taxpayers with turnover between Rs. 1.5 crore and Rs. 5 crore in the previous financial year.

Is HSN code necessary?

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 GST HSN code mandatory?

The mandatory reporting of HSN codes was introduced while preparing the GSTR-1 return from 1st April 2021. As per the revised declaration, taxpayers with an annual aggregate turnover of more than Rs. 5 crore must mandatorily declare six digits of the HSN code on all the tax invoices.

Which is an example of a 6 digit HSN code?

Example: Where HSN 6 digits are specified to be reported in invoice, valid HSN codes as available in tariff, at both 6-digits and 8-digits can be mentioned. Similarly, where HSN at 4-digits are specified, valid HSN codes as available in tariff, at 4-digit, 6-digit and 8-digit can be mentioned.

Where can I find the HSN code for my product?

To minimize errors while filing GST returns, it’s important to know the right HSN code for your product. Use ClearTax HSN Calculator to find out the HSN code for your product. Our ClearTax GST Software has all the HSN codes inbuilt. You need to select the items you sell only once in the Item Master.

Can a 6 digit HSN be reported in GST?

However, there are instances that some taxpayers are trying to report truncated first 6-digits out of an otherwise valid 8-digit HSN; which are actually not available in Tariff at 6-digit level and with no corresponding description of goods; these are invalid and hence not being allowed in the System.

Is the number of HSN code the same in India?

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. India is a member of World Customs Organization (WCO) since 1971. It was originally using 6-digit HSN codes to classify commodities for Customs and Central Excise.