Impact if wrong HSN Code mentioned in Eway Bill

By | March 22, 2019
(Last Updated On: March 22, 2019)

Impact if wrong HSN Code in Eway Bill

Video Analysis by CA Satbir Singh in Hindi

what is the impact if wrong HSN Code entered at time of making eway bill & mistake is realized after 24 hours . How to fix problems .

Answer : GST Rates of Goods depends on HSN codes. If wrong HSN code is mentioned in Eway Bill then there will be mismatch with Tax Invoice and GSTR 1

In case wrong HSN code is mentioned in Eway bill then-

  • supplier can Cancel E way bill in 24 hours or
  • ask the recipient to reject e way bill . he can can reject upto 72 hours

Rates of GST on Goods depends on HSN Codes

under GST, goods will have to be classified on basis of HSN.  The GST rates have been notified on basis of Customs Tariff.

The Customs Tariff Act is based on HSN. That Tariff will be used to classify goods under GST.

As per Notification 1/2017-CENTRAL TAX (RATE) ( GST Rates on Goods)

“Tariff item”, “sub-heading”, “heading” and “Chapter” shall mean respectively a tariff item, sub-heading, heading and Chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975).

HSN Code required to be given in Tax Invoice

In case of taxable persons having : –

Annual Turnover in preceding year upto Rs 1.5 Crore : HSN Code is not required to be mentioned in tax Invoice.

Annual turnover in preceding year above Rs 1.50 crore but below Rs 5 crore : HSN code at two digit level (i.e. only chapter number) is required in tax Invoice.

Annual turnover in preceding year above Rs 5 crores, HSN code at four digits level is required

Refer Notification No. 12/2017-Central Tax dated 28-6-2017 and Notification No 5/2017 Integrated Tax dated 28-6-2017,

HSN Code required to be given in Eway Bill

As per Eway bill Format EWB-01 : HSN Code in column A.8 shall be indicated at minimum 

  • two digit level for taxpayers having annual turnover upto five crore rupees in the preceding financial year and
  • at four digit level for taxpayers having annual turnover above five crore rupees in the preceding financial year

HSN Code required to be given in GSTR 1 ( outward Supply Return )

It will be optional for taxpayers having annual turnover  upto Rs. 1.50 Cr but they need to provide information about description of goods.

In case of tax payers having annual turnover in preceding year above Rs 1.50 crore but below Rs 5 crore. HSN code at two digit level (i.e. only chapter number) is required.

In case of taxable persons having annual turnover above Rs 5 crores, HSN codeat four digits level is required – Instruction No. 13 to form GSTR-1

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