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TRANSCRIPT
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Contents
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Interpretative Rules
About HSN
HSN Under GST
HSN
Under GST
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Rule 46 (g)
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1st Proviso to rule 46
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Any Notification ?
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N/N- 5/2017 Integrated TaxN/N- 12/2017 Central Tax
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N/N- 5/2017 Integrated TaxN/N- 12/2017 Central Tax
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Rule 49 (e)
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Rule 55 (1)
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Notification 5/2017 Applied or Not ?
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Form GST REG-01Application For Registration
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Form GST REG-26Application For Enrolment of Existing Taxpayer
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I have enrolled in GST but I forgot to enter SAC codes. What should I do?
The status is migrated.
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The same can be filled while filing FORM REG-26 for converting
provisional ID to final registration.
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Reply on Twitter
Form GSTR -1Details Of outward supplies of goods or services
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Form GSTR -2Details Of Inward supplies of goods or services
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How to incorporate two supplies in return for Pharma with same HSN code
of four digits but having different tax rates?
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Returns provide for furnishing rate wise details
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Reply on Twitter
Digit ?20CA Akshay Kumar Jain
Digit ?21CA Akshay Kumar Jain
Form GST TRAN-1Transitional ITC/Stock Statement
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Form GST TRAN-1Transitional ITC/Stock Statement
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Digit ?
Digit ?
Form GST TRAN-1Transitional ITC/Stock Statement
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Form GST TRAN-2
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Is HSN code for goods or accounting code for service relevant for
payment of tax
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ICAI-FAQ
The format of challan does not contain column to disclose the HSN
code or the accounting code, therefore, it is not relevant for
payment of tax
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Answer
THE CONSTITUTION (ONE HUNDRED AND FIRST AMENDMENT) ACT, 2016
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Page 74- N/N 1/2017-Central Tax (Rate)
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N/N 11/2017-Central Tax (Rate)
Heading no. 9988Manufacturing services on physical inputs (goods) owned by
others
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Import/Export
▪ In the case of imports/exports, HSN codes of eight digits shall be compulsory,as GST has to be compatible with international standards and practices.
What about Services ?
About
HSN
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Meaning
▪The Harmonized Commodity Description and Coding System, also known as the Harmonized System (HS) of tariff nomenclature is an internationally standardized system of names and numbers to classify traded products
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Used By
▪Tax authorities
▪Statisticians
▪Producers
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Harmonised System▪ Harmonized System of Nomenclature by World Customs Organization (WCO)
▪ WCO has more than 180 members, 75% of which are developing countriesthat are responsible for managing more than 98 percent of world trade.
INDIA▪ Used as basis for National Customs Tariff – CTA 1975
▪ Used as basis for Levying excise duty in India – CETA 1985 – 28-2-1986
▪ VAT – 2005 many states ?
▪ Now GST
The Custom Tariff Act, 1975
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Bifurcation of 190532
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Basis Of HSN▪ HSN has
▪ 21 sections,
▪ 99 chapter,
▪ 1,244 headings, and
▪ 5,224 subheadings.
▪ Sections and chapters are arranged in order of a product’s degree of manufacture or in terms of its technological complexity.
▪ Natural products like animals and vegetables appear in the earlier sections; man-made ortechnologically advanced products like machinery appear later.
▪ Chapters have a similar structure. Take cotton, for example – Chapter 52. Cotton that hasnot been carded or combed appears earlier in the chapter; cotton as a woven fabric appearslater.
▪ Sections are arranged progressively Natural or made there from, Derived there from, Manmade
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More On HSN▪ Each Section is a collection of various chapters. Sections represent a broader class of
goods, and chapters represent a particular class of goods.For example, Section XV relates to base metals and articles of base metals, while SectionXV, Chapter 72 is for iron and steel specifically.
▪ Each chapter is further divided into various headings depending upon different types ofgoods belonging to the same class.
For example, Chapter 72, Heading 02 deals with ferro- alloys, and Chapter 72, Heading 29with wire of other alloys.
▪ Each heading contains products, which are ultimately assigned an HSN code.Ferro- manganese under ferro-alloys, for example, bears the HSN code 72.02.01 – 01 beingthe product code under Heading 02 of Chapter 72.
▪ For better identification of goods, India and a few other countries use eight-digit codes fordeeper classification.For example, 72.02.99.11 is the HSN code for ferro-phosphorus under other ferro-alloyproducts.
HSN Section & Chapter
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Section Chapter Type of Item covered
I 1 to 5 LIVE ANIMALS, ANIMAL PRODUCTS
II 6 to 14 VEGETABLE PRODUCTS
III 15ANIMAL OR VEGETABLE FATS AND OIL AND THEIR CLEAVAGE PRODUCTS; PREPARED EDIBLE FATS; ANIMAL OR VEGETABLE WAXES
IV 16 to 24PREPARED FOOD STUFFS, BEVERAGES, SPIRITS AND VINEGAR, TOBACCO AND MANUFACTURED TOBACCO SUBSTITUTES
V 25 to 27 MINERAL PRODUCTS
VI 28 to 38 PRODUCTS OF THE CHEMICAL OR ALLIED INDUSTRIES
VII 39 to 40 PLASTICS AND ARTICLES THEREOF, RUBBER AND ARTICLES THEREOF
VIII 41 to 43RAW HIDES AND SKINS, LEATHER, FURSKINS & ARTICLES THEREOF; SADDLERY AND HARNESS; TRAVEL GOODS, HANDBAGS AND SIMILAR CONTAINERS; ARTICLES OF ANIMAL GUT (OTHER THAN SILK-WORM GUT)
IX 44 to 46WOOD AND ARTICLES OF WOOD; WOOD CHARCOAL; CORK AND ARTICLES OF CORK; MANUFACTURES OF STRAW, OF ESPARTO OR OF OTHER PLAITING MATERIALS; BASKETWARE AND WICKERWORK.
X 47 to 49PULP OF WOOD OR OF OTHER FIBROUS CELLULOSIC MATERIAL; RECOVERED (WASTE AND SCRAP) PAPER OR PAPERBOARD; PAPER AND PAPERBOARD & ARTICLES THEREOF
XI 50 to 63 TEXTILE & TEXTILE ARTICLES
HSN Section & Chapter
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Section Chapter Type of Item covered
XII 64 to 67
FOOTWEAR, HEADGEAR, UMBRELLAS, SUN UMBRELLAS, WALKING-STICKS, SEAT-STICKS, WHIPS, RIDING-CROPS AND PARTS THEREOF, PREPARED FEATHERS AND ARTICLES MADE THEEWITH; ARTIFICIAL FLOWERS; ARTICLES OF HUMAN HAIR
XIII 68 to 70ARTICLES OF STONE, PLASTER, CEMENT, ASBESTOS, MICA OR SIMILAR MATERIALS; CERAMIC PRODUCTS; GLASS AND GLASSWARE
XIV 71NATURAL OR CULTURED PEARLS, PRECIOUS OR SEMI-PRECIOUS STONES, PRECIOUS METALS CLAD WITH PRECIOUS METAL AND ARTICLES THEREOF; IMITATION JEWELLERY; COIN
XV 72 to 83 BASE METAL & ARTICLES OF BASE METAL
XVI 84 to 85
MACHINERY AND MECHANICAL APPLIANCES; ELECTRICAL EQUIPMENT AND PARTS THEREOF; SOUND RECORDERS AND REPRODUCERS, TELEVISION IMAGE AND SOUND RECORDERS AND REPRODUCERS, AND PARTS AND ACCESSORIES OF SUCH ARTICLES
XVII 86 to 89 VEHICLES; AIRCRAFT; VESSELS & ASSOCIATED TRANSPORT EQUIPMENT
XVIII 90 to 92
OPTICAL, PHOTOGRAPHIC, CINEMATOGRAPHIC, MEASURING, CHECKING, PRECISION, MEDICAL OR SURGICAL INSTRUMENTS AND APPARATUS; CLOCKS AND WATCHES; MUSICAL INSTRUMENTS; PARTS AND ACCESSORIES THEREOF
XIX 93 ARMS AND AMMUNITION; PARTS AND ACCESSORIES THEREOF
XX 94 to 96 MISCELLANEOUS MANUFACTURED ARTICLES
XXI 97 to 98 WORKS OF ART, COLLECTORS’ PIECES AND ANTIQUES
HSN Section & Chapter
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Chapter 77Reserved for Possible Future Use
Interpretative
Rules
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Classification Principles▪ In formatting a classification for a particular item, dealers must apply the General
Interpretative Rules (GIR) in a sequential manner
▪ Once a classification is complete, there’s no need to continue applying the remainder of the rules.
▪ Moving on to the next rule is only necessary if a complete classification does not result from applying the previous rule.
▪ Classification is final once there is no ambiguity or confusion.
▪ For classification purposes, a word should be construed in its popular sense and not in the strict or technical sense. For example, “Dabur Lal Dant Manjan” is not understood as “ayurvedic medicine” in trade parlance but as “toilet preparation” and should be classified accordingly.
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APPROACH TO CLASSIFICATION▪Clearly understand the product ▪Description of the product▪Qualities/properties of the product ▪Functions of the product▪Field of Industry in which used▪Source of energy–mechanical /thermal/ hydel/electrical▪Chemical formula▪Stage of the product – raw-rough / semi finished / finished▪Worked / not worked etc
Interpretative Rule- 1
▪Titles of sections, chapters, and sub-chaptersare provided for ease of reference only.
▪For legal purposes, refer to headings and sub-headings to drive classification.
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Interpretative Rule- 2(a)
▪Extends the scope of the heading:
To cover not only the Complete article but also articlesincomplete and unfinished
-Provided – as presented –
it has the essential character of the complete or finished article.
▪The heading shall also include removed/unassembled ordisassembled parts (i.e., SKD/CKD).
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Interpretative Rule- 3(a)Choosing a specific heading is preferred over a general heading.For example, 85.10 is the classification for “shavers, hair clippers and hair removing appliances, with self-contained electric motor.”
This is a more specific classification for a handheld electric razor than either:
67: “tools for working in the hand, pneumatic, hydraulic or with self-contained electric or non-electric motor,” or
09: “electro-mechanical domestic appliances with self-contained electric motors, other than vacuum cleaners”
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Interpretative Rule- 3(b)
Mixtures/composite goods should be classified per the material or substance that gives them their essential character.For example, a grooming kit consisting of electric hair clippers (85.10), a comb (96.15), and a brush (96.03) inside a leather case (45.02), should be classified under the electric hair clippers heading (85.10).
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If two headings are equally suited to the item, choose the heading that appears last in numerical order.
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Interpretative Rule- 3(c)
Interpretative Rule 4▪ Goods which are not specifically covered by any heading (e.g. because
they have newly appeared on the world market)
▪ Shall be classified in the heading appropriate to the goods to whichthey are most akin.
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Interpretative Rule 5(a)Containers specifically designed for the article and suitable for long-term use will be classified along with that article, if such articles are normally sold along with such cases.
For example, a camera case would fall under cameras.Packing materials and containers are also to be classified with the related goods except when the packing is for repetitive use.
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HSN Code At 8 Digit Level
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http://rajtax.gov.in/vatweb/download/gst_images/hsn_8_digit.pdf
