When you purchase a product, you will have got a GST Invoice. You must have seen the HSN code in your bill.
In this article, I tell you why this code is added in GST Invoice and who created this and what is the purpose for it, and also tell you is it necessary to add HSN code in GST Invoices or not.
HSN Code Full Form -
The full form of the HSN Code is Harmonized System Nomenclature. The HSN code is made by World Customs Organization who controls imports and exports throughout the world.
Assume that if the HSN code is not assigned to the product and any product is imported from India to America, then there is confusion in the tax rate. To avoid this confusion, World Customs Organization made these HSN codes. This simplifies the imports and exports of the product and its taxes.
Rules of HSN Code :
1.If your turnover is below 1.5 Crore, then there is no need to enter HSN Code.
2.If your turnover is between 1.5 to 5 Crore, then you must enter 2 digit HSN Code on the right side.
3.If your turnover is above 5 Crore, then you must enter 4 digit HSN Code on the right side.
4.If you are exporting your product outside India, then you must enter 8 digit HSN Code.
Also Read -
- Tally Online Test Paper Question and Answer
- Tally ERP 9 Shortcut Keys PDF
- What is HSN Code and its Full Form
If you like this article about what is HSN Code and its Full Form, Consider sharing this article with friends.
