Changes applicable from November 1: 4 digit HSN code on 5 crore turnover

Changes have been made in GST returns. Now it will be mandatory for taxpayers with a turnover of less than Rs 5 crore to write a 4-digit HSN code in the GST return.

Changes have been made in GST returns. Now it will be mandatory for taxpayers with a turnover of less than Rs 5 crore to write a 4-digit HSN code in the GST return. This arrangement will come into effect from November 1. Earlier, 2 digit HSN code had to be entered. Earlier, it was made mandatory for taxpayers with a turnover of more than 5 crores to enter a 4-digit code from April 1, followed by a 6-digit code from August 1. The 2-digit HSN code was made mandatory from April 1 for those with a turnover of less than 5 crores.

This process of making the code mandatory is going to be done by the government in 4 phases. Of these, the first and second phases have been implemented. The third and fourth phases will be implemented in the coming time. Its objective is to get complete information about 1 to 1 i.e. individual stocks. This being so, the taxpayer will have to very carefully enter the code of the goods sold in his return. When a mistake is made, it can be difficult to explain it during the survey.

Even those with low turnover will have to keep complete records.
President of Taxation War Association Pradeep Verma said, HSN is an 8-digit code. In this, the broad category of the product is marked in the first 2 digits. The next 2 digits contain information about what the product is. This is followed by other information related to the product and its classification up to 4 digits. This code is for the department to keep information about the stock with the trader. Due to this change, the businessmen with lesser turnover will also have to keep complete records.