Namaste

We recently had a discussion with a lot of Businessmen who shared an issue related to HSN codes.

They told us about the issues they were getting while generating the E-way Bill and IRN because the portal showed that the HSN code entered was invalid.

To understand the problem and make sure that you don't do it in the future, here is an example that will answer all your doubts.

This is an image of the HSN codes as recognized by the Govt.

All of the above-mentioned codes are valid, and one of them is a 4 Digit code, one of them is a 6 Digit code, and the rest are 8 Digit codes.

As per the Govt.'s Guidelines, Businesses with more than 5 Crores in Turnover need to select a minimum of a 6 Digit HSN / SAC Code for Transactions.

For example, in the above picture, the code of Ensembles of cotton is 6203 22 00. But some of the Businesses are trying to submit the 6 Digit code by entering only the number 6203 22.

This is an invalid input because this code is not available in the ITC-HS Data Base. In this particular case, you are supposed to fill in the complete code, which is 6203 22 00.

However, like in the above picture, 6203 is a valid code and can be used for Businesses who fall into the category of a minimum of 4 Digit HSN codes.

A general rule of thumb should be to use only the codes printed in the codes list as given by the Govt. We cannot add or remove any numbers, and doing so will make it invalid!

These are small things that will make your life easier, and this is the objective of GST DOST; to make your life easier.

Just like wearing a Face mask and social distancing makes your life easier.

We hope you liked the small piece of knowledge, and we hope that it will help you in your daily operations.

Let us know if you liked it by sending a reply.

If you have any doubt related to anything linked to GST, feel free to contact GST DOST, and we will help solve your concerns along with Life-changing solutions for your Business!!!

T: 90 8888 3000

E: support@gstdost.com

www.askdost.com