HSN or Harmonised System of Nomenclature is one of the most talked about terms in GST. People filing Goods and Service Tax return have a lot of ambiguity regarding HSN reporting due to number of reasons such as, newly introduced GST laws and provisions, multiple GSTRs to be filed, different disclosure requirements and so on..
Let us read below to get answers of all such day to day common queries and ensure seamless GSTR 9 Annual Return filing, now onward!
A unified system called HSN has been adopted for the classification of goods under.
HSN or Harmonised System of Nomenclature are standard codes, which are assigned for each possibly identified goods. They are used worldwide and India has adopted the system way back in 1986 for Central Excise and Customs Act. This help in standardising the classification of supply and determining tax rates not just in India rather worldwide.
Indian manufacturers under GST shall be required to follow a 3-tiered structure of Harmonised System of Nomenclature.
Same as HSN for goods, India has a complete set of adopted SAC (Service accounting Code) for categorisation of services.
The details of HSN summary of both inward and outward supplies is required to be mandatorily submitted in table 17 and 18.
Yes, Correct Harmonised System of Nomenclature should be shown in Annual Return. There could be possibility that HSN number was selected wrongly which is noticed after the end of FY. Though the HSN summary in GSTR-1 might have been given wrong, same mistake should not be continued in the Annual Return.
HSN wise details of input tax credits availed for inputs, services and capital goods is required to be disclosed based upon these criterias
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The Harmonised System of Nomenclature summary needs to be reported under Part V – Sl.No.18. of annual return
Part VI requires disclosure of Harmonised System of Nomenclature wise details of inward and outward supplies. It will be optional for taxpayers having annual turnover upto INR 1.50 Cr. It will be mandatory to report HSN code at two digits level for taxpayers having annual turnover in the preceding year above INR 1.50 Cr but upto INR 5.00 Cr and at four digits’ level for taxpayers having annual turnover above INR 5.00 Cr.
Yes, the Harmonised System of Nomenclature summary is required to be given if Debit or credit note are issues in relation to movement of goods. Movement of goods means when the direct impact can be seen on stocks and not just price adjustment. For example : A sales made at Rs 95, now debit note issued for Rs 5 to make the effective price Rs 100. Although the transaction involves issue of debit note, but the same will not be reported. Because it was issued just to give effect to the prices.
Similarly if a debit note is issued for making purchase returns the same shall be reported under Table of the Annual return. And, credit note issued on account of return of goods by the customer under Table 17.
There is no explicit statement made in Annual Return as to only report taxable supplies. Not even in Table 17 which provides for reporting of outward supplies. Hence, it can be inferred that, Harmonised System of Nomenclature wise summary shall also be provided for exempt supplies.
