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Jun

what is HSN Code in GST

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. Later Customs and Central Excise added two more digits to make the codes more precise, resulting in an 8 digit classification. The purpose of HSN codes is to make GST systematic and globally accepted. HSN codes will remove the need to upload the detailed description of the goods. This will save time and make filing easier since GST returns are automated. If a company has turnover up to ₹15 million (US$200,000) in the preceding financial year then they did not mention the HSN code while supplying goods on invoices. If a company has turnover more than ₹15 million (US$200,000) but up to ₹50 million (US$660,000), then they need to mention the first two digits of HSN code while supplying goods on invoices. If turnover crosses ₹50 million (US$660,000) then they shall mention the first 4 digits of HSN code on invoices.