HSN Number for GST
What is HSN Number for GST
The full form of HSN means Harmonized System Nomenclature.
HSN code number is broadly utilized as a part of numerous nations to order products for tax collection reason, asserting advantages and so on. Fit System of Nomenclature number for every item is acknowledged by the greater part of the nations and the said HSN code stays same for all products. In any case, HSN number utilized as a part of a portion of the nations changes nearly nothing, in light of the idea of products characterized.
HSN code is not linked with Tax Rate
- HSN code is not linked with tax Rate till everybody understands HSN code. And for Turnover below 1.5 Cr. No need to mention HSN code in the invoice, from 1.5 Cr. – 5 Cr only mention 2 digits of HSN code and above 5 Cr mention only 4 Digit of HSN code.|
- For the invoice, No format and No color are Specified by the department. You can design your own invoice. The only thing to keep in mind is that some details are mandatory is to mention in Invoice.
- If our supplier registers under composite scheme (below turnover of 75 lacs) he could not take credit of GST or he could not pass GST credit. He has to pay only 2% of turnover as GST if he is a manufacturer and 1% if He is Traders. And 5% if he is the restaurant.
- If our GST input is more than GST output (ie for E-rickshaw industries most of the items input credit of 28% and output GST is 12%) in that case after every month return files person can apply for refunds (RDF1) and that refund will be obtain within 60 days otherwise departments is liable to pay interest on it. and refund application can be done up to 2 years. So worries of a Capital block is removed.
- There are Anti-Profiteering Rules. – Everyone is can take mod vat credits of Excise, Services Tax, VAT, Octroi, Entry Tax on its stock items and it has to pass to customers. For example, If I am buying today an iron pipe at Rs.62 per Kg plus 5% VAT ( which included 12.5% excise, 2% CST and 3.5% Octroi.) but after 1st July supplier can credit of all the tax and he has to reduce its basic price. He can not charge Rs 62 + 18% GST but he has to reduce its price by tax amount and decide the new base price, if any supplier is not abiding by it then we can complain against him and the department will penalize on such suppliers.
No need of E waybill till next 6 months.
- If we do not receive payments in 60 days from customers then we can claim for GST amount charged on it. So most people worried removed if customers fail to pay us then we lose our Tax amount also. And if customers pay after six months then we can again pay GST which we have taken back as credit.
- All people worried there are 37 Returns in the year. And there is no revised return. But it’s not 100% truths. Every month we have to files our output ( sales or services) we add our invoice day to day base to GST portal. And save it. we can edit also that invoice. On 10th or before 10th we just have to upload all edited sales invoice. Since we have edited invoice before uploading no need of revised return. Until 15th you can check all your purchase and verified (no need to files return its only verification) on 20th you just need to update your final return after correction if any. And if there is any mistake found we can be rectified that mistake in next months returns So it becomes more simple than before.