Table of Contents
Key Clarification on Harmonized System of Nomenclature Code Summary in annual GSTR 9 Return
Annual GSTR 9 Return Disclosure of Harmonized System of Nomenclature Code Summary.
- Harmonized System of Nomenclature Code Summary should be after net of Credit Note & Debit Note/adjustment.
- Exempted & Taxable Supply Harmonized System of Nomenclature Code also to be included in HSN (Harmonized System of Nomenclature) Code summary
- HSN (Harmonized System of Nomenclature Code) summary should match with Total appearing in GSTR 9 after Sr. No. 13
- If possible, try to provide HSN(Harmonized System of Nomenclature) Code of Non-GST supply also, so as to match total Harmonized System of Nomenclature Code Summary value with Sr. No. 13
- if any issue in preparing Harmonized System of Nomenclature Code summary, you can take call what to report and have ‘note’ ready of it, so as to explain the authorities in future if they raise any query.
- Harmonized System of Nomenclature Code summary of Inward Supply is not mandatory.
What is Consequences if mistake declaring the SAC / HSN Code of GST supplied.?
Important elements is classification of services or goods for the purpose of determination of rate of tax under the Under Goods & Services tax law
Answere : Harmonized System of Nomenclature Code/ Service accounting code Yes you are right
- Wrong classification of Harmonized System of Nomenclature Code/ Service accounting code leads to wrong rate of duty which further leads to wrong payment of taxes.
- What if the Goods & Services tax charged at lower rates- This leads to loss of non-recovery of GST tax, interest & penalties from clients.
- In case we made the Wrong exemption claimed- This result in loss of non-availment of ITC.
- Goods & Services tax charged at higher rates- This leads to loss of customer base, loss of creditability & incurring unavoidable loss on account of discounts given to clients.
- GST Dept will ask for differential tax amount and buyer will not be there to reimburse the same.
- We have to pay the tax at a later date and credit will not be available due to Section 16 of Central Goods and Services Tax Act, 2017.
- In case we made the Wrong classification of services or goods may leads to denial of import or export exemption under FTP Policy such as Exports incentives, duty drawback, etc.
- GST Penalty amounting of RS 50k (Rs 25k each for SGST or CGST ) can be levied for mentioning wrong Harmonized System of Nomenclature Code/ Service accounting code or non-mentioning of SCN or HSN code as per u/s 125 of the CGST Act, 2017.
