kindly tell me when 8 digit HSN Code required?
and
when 6 digit HSN code required?
The Harmonized System of Nomenclature (HSN) is a globally recognized system for classifying goods. In India, the HSN code is used for the classification of goods for taxation purposes under the Goods and Services Tax (GST) regime. Here's when an 8-digit HSN code and a 6-digit HSN code are required:
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8-digit HSN Code: An 8-digit HSN code is required for businesses with an annual turnover exceeding 5 crore rupees in the preceding financial year. If your business falls under this category, you need to mention the 8-digit HSN code on your tax invoices while supplying goods. This level of classification provides more specific details about the goods being supplied.
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6-digit HSN Code: Businesses with an annual turnover of up to 5 crore rupees in the preceding financial year can use a 6-digit HSN code on their tax invoices. The 6-digit code provides a broader classification of goods but is less specific compared to the 8-digit HSN code. It is important to note that if turnover exceeds 5 crore rupees, businesses will need to switch to the 8-digit HSN code.
It is advisable to consult the official GST portal or seek guidance from a tax professional to ensure compliance with the HSN code requirements based on your specific circumstances and turnover.
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