No requirement of HSN code up to turnover of Rs.1.50 Crore – Read all about requirement of HSN code under GST

Introduction

To provide further ease to the small taxpayers, the government exempts the requirement of HSN code for the turnover up to Rs.1.50 crore. This has been done to keep the GST as simple as possible atleast in the beginning.

What is HSN Code?

HSN code means harmonized system of nomenclature code where each good is given a particular code. In India, HSN code is widely famous in custom Act,  however, apart from them; very few people know their meaning.

Therefore, in public interest the government has done away the requirement of putting HSN code in the invoices atleast for taxpayers having turnover up to Rs.1.50 Cr.

Also, the government restricts the maximum number of HSN code to four digit (internationality it is up to 8 digit). Here is the summary of what government said in the notification:

• Up to turnover of Rs.1.50 Crore – No HSN code required.
• Up to turnover of Rs.5 Crore – Two digit HSN code required.
• Turnover more than 5 Crore – Four digit HSN code required.

The notification shall come into force on 1st Day of July, 2017.

Conclusion

In case you have any query, kindly write to us at info@hubco.in.

Related Links:

• GST Registration
• GST Return Filings
• Outsource GST Compliances