UrbanPro
true

Take CA Coaching from the Best Tutors

  • Affordable fees
  • 1-1 or Group class
  • Flexible Timings
  • Verified Tutors

GST Updates

F
FR Prashanth Reddy
15/12/2017 0 0

For dealers having turnover above Rs 5 crores, it is said that 4 digits of HSN code are to be mandatorily mentioned in the invoice. Since the code is of 8 digits, could you please tell me which 4 digits are supposed to be mentioned? The first 4 or the last 4?

In order to remove any doubt regarding HSN code, let us understand the structure of the Harmonised System of Nomenclature.

At the aggregate level, the HS nomenclature consists of 21 sections (1- XXI), which contain 99 chapters. However, the effective number of chapters are only 96 as Chapter 77 is reserved for future use in the HS and the Chapters 98 and 99 are reserved for special uses by the contracting parties (WTO, 2005; GOI, 1992; Antweiler, 1995).

The basic and mandatory six-digit code (for example: 1234.56) of the HS has three parts.

  • Chapter: The first two digits (12) identify the chapter number in which the goods are classified.
  • Heading: The next two digits (34) denote broad commodity groupings within that chapter.
  • Sub-Heading: The last two digits (56) beyond this four-digit level represent more specific classification for any given commodity.

Beyond this point, every country using the HS is allowed to assign its own coding system for further disaggregation (Tariff Item).

Hence, when the Government asks for 4 digits of the HSN code, it wants to be led to the particular Heading of a particular Chapter in which your goods fall, i.e. the First 4 Digits.

0 Dislike
Follow 8

Please Enter a comment

Submit

Other Lessons for You

Revision
Every new concept learned must be revised with a periodic interval of 3-7-21 days.

Essential Elements Of A Valid Contract.
In order to become a valid contract, an agreement must have the following essential elements: There must be an offer and its acceptance: In an agreement there must be an offer by one party and its...

Important Points Regarding Offer
Following points are important to note regarding the offer: The offer may be made to the world at large: It means that it is not necessary that an offer should be made to a specific person. An offer...

Valuation of Goodwill
This is one of the introductory chapters at the graduation level as well as in professional exams. The brief notes on methods and calculation of goodwill in easy steps are presented below: Methods of...

Free Demo Class on GST:-Time Of Supply ,Very important topic (GST made easy by Devendra Kumar
GST – Time of Supply Introduction GST – Time of Supply: Point In time When the liability to pay tax arises Who shall pay: Taxable Person • On what GST shall be paid: Supply of Goods...
X

Looking for CA Coaching Classes?

The best tutors for CA Coaching Classes are on UrbanPro

  • Select the best Tutor
  • Book & Attend a Free Demo
  • Pay and start Learning

Take CA Coaching with the Best Tutors

The best Tutors for CA Coaching Classes are on UrbanPro

This website uses cookies

We use cookies to improve user experience. Choose what cookies you allow us to use. You can read more about our Cookie Policy in our Privacy Policy

Accept All
Decline All

UrbanPro.com is India's largest network of most trusted tutors and institutes. Over 55 lakh students rely on UrbanPro.com, to fulfill their learning requirements across 1,000+ categories. Using UrbanPro.com, parents, and students can compare multiple Tutors and Institutes and choose the one that best suits their requirements. More than 7.5 lakh verified Tutors and Institutes are helping millions of students every day and growing their tutoring business on UrbanPro.com. Whether you are looking for a tutor to learn mathematics, a German language trainer to brush up your German language skills or an institute to upgrade your IT skills, we have got the best selection of Tutors and Training Institutes for you. Read more