Govt makes it mandatory to mention 8-digit HSN Code in tax invoice for 49 chemical based products
PTI, Dec 2, 2020, 5:25 PM IST
New Delhi: The government has made it mandatory to mention 8-digit HSN or tariff code for 49 chemical-based products while issuing Goods and Services Tax (GST) invoice, a move experts feel is aimed at curbing tax evasion.
While notifying the HSN Code for these products, the Central Board of Indirect Taxes and Customs (CBIC) said, “A registered person shall mention eight number of digits of HSN Codes in a tax invoice issued by him.”
Currently, businesses mention up to 4-digit tariff code while issuing invoices.
In trade parlance, every product is categorised under an HSN (Harmonised System of Nomenclature) Code. It helps in the systematic classification of goods across the globe.
AMRG & Associates Senior Partner Rajat Mohan said CBIC has notified every supplier of specified chemicals to mention 8 digits of HSN Code in every tax invoice issued by him for the said goods from December 1, 2020, irrespective of the scale of operations.
“This is the first notification of its kind whereby a specific category of suppliers are pushed to use 8 digit HSN Code on every invoice irrespective of the aggregate turnover. Although there is no reason for cornering the supplier of specified chemicals, it seems that it is carried out to break the fake invoicing ring,” Mohan said.
EY Tax Partner Abhishek Jain said, “CBIC has mandated 8 digit HSN classification for 49 chemical-based products, to be mentioned at the time of issuing GST invoice, which was currently placed at 2 digits/4 digits depending upon turnover. Pursuant this, industry players dealing in these goods will have to undertake HSN classification at 8 digit level for their products along with requisite ERP (Enterprise Resource Planning) changes.”
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
Related Articles More
PM Modi announces Rs 1000 cr ‘Startup India Seed Fund’
At 18 million, India has largest diaspora in the world: UN
Snapdeal terms USTR report placing it in Notorious Markets List ‘ill-informed,’ ‘incorrect’
WhatsApp delays new privacy policy by 3 months amid severe criticism
Economy likely to contract up to 7.5% this fiscal, may See 9-11% growth in FY22: Arvind Virmani
MUST WATCH
I have not asked for a ministerial position: Halady Srinivasa Shetty
Staff nurse Shobha, first to be vaccinated against Covid at Dr. TMA Pai hospital
Ravi Katapadi, the hope of the poorest children, won 12.5 lakhs at KBC | Udayavani
Signal surges ahead of Whatsapp amid privacy concerns
What do vaccine experts say about confusion over the covid vaccine?
Latest Additions
Film stars descend virtually as 51st IFFI begins with precaution amid COVID-19 pandemic
PM Modi announces Rs 1000 cr ‘Startup India Seed Fund’
Indian taekwondo rings in 2021 with online Speed Kicking Championship
Never asked for any ministerial post nor was one offered to me, reacts Halady Srinivas
Pragmatic governor Laschet elected to lead Germany’s incumbent CDU party