Update Business Code (HSN Code)

Business Codes, commonly referred to as HSN (Harmonized System of Nomenclature) Codes, need to be reviewed and updated regularly. They are an essential aspect of operating a business in India. The HSN code refers to a 6-8-digit code that has been adopted by the World Custom Organization (WCO). In India, the classification is used for the systematic treatment of products for GST legislation.

HSN codes in India are legal from the Central Goods and Services Tax Act of the year 2017. HSN codes are of great importance in section 15 of the CGST Act, which has been invoked regarding the value of the taxable supply. Furthermore, the Notification no. 12/2017 Central Tax dated 28.06.2017 includes exhaustive guidelines regarding the applicability and manner of employing HSN codes.

HSN codes are important because they define the GST rate that will apply to your products; therefore, it is essential to update your codes regularly. For instance, using the wrong code in the right software could mean paying the wrong amount of tax, which is punished.

At Compregi, we fully appreciate that it can be quite an endeavor to keep tabs on the codes for HSN. That is why we are glad to provide professional support in updating the Business Code on your website in the shortest time and with no mistakes. Our team keeps abreast with any changes that may occur in the regulatory framework on GST to advise your business appropriately.

Update Business Code (HSN Code) Cost

We at Compregi believe in complete transparency in the complete registration process of your company. Below mentioned cost structure includes all the necessary government fees required at multiple stages of registration.

REGISTERED OFFICE CHANGE/UPDATE

799/-
  • Free Consultancy
  • Free Search Check
  • Preview before Filing

UPDATE BUSINESS CODE (HSN CODE)

799/-
  • Free Consultancy
  • Free Search Check
  • Preview before Filing
  • 100% Peace of Mind

CANCEL GST REGISTRATION

799/-
  • Free Consultancy
  • Free Search Check
  • Preview before Filing

What is the HSN Code

HSN is an acronym of Harmonized System of Nomenclature. It is one of the most generally recognized systems of categorizing goods in international trade which has been developed by the World Customs Organization (WCO). The HSN code is a numerical code of between 6 and 8 digits, which gives the classification of more than 5,000 products, which can be universally classified across countries.

In particular, in the context of India, the HSN code has been used to classify the goods under the GST regime. This code should be stated in all invoice control for B2B and B2C. HSN code helps in the systematic and logical arrangement of the commodities that go in making up international trade statistics and is the root of the customs tariff.

Why do You Need to Update the Business Code (HSN Code)?

Frequently, updating your code is not just an administrative task that must be accomplished – it is a necessity for the efficient operation of your enterprise. Here’s why it matters:

Tax Compliance

Knowing the right HSN code allows you to pay the correct GST amount. If the wrong code is entered, it means that taxes are either underpaid or overpaid, neither of which is desirable.

Avoiding Penalties

In case you provide incorrect HSN codes, you may be penalized by the tax authorities that are responsible for the codes. By maintaining your codes, you escape these extra expenses that would have been incurred in the process of developing new codes.

Smooth Business Operations

HSN codes help you to file your GST returns as they enable you to classify your goods correctly. They also contribute to the easy facilitation of import/export operations if your company is in the business of importing or exporting.

Market Expansion

HSN codes are important if you are thinking of adopting additional SKUs or venturing into new markets. This is because, depending on the type of product, it may require a different code.

Business Credibility

Correct HSN codes make consumers inclined towards a business as they demonstrate the business’s professionalism and lawfulness. This can enhance your believability with the clients, producers, and authorities regulating your commerce.

Who Needs to Update Business Code (HSN Code)

The updating of the HSN code is required for several industries. Here is the list of people or organizations that have something to do with HSN codes and should be mindful of their codes:

01
Manufacturers of goods
02
Traders and retailers
03
Importers and exporters
04
E-commerce businesses
05
Service providers (they use SAC codes; similar to HSN codes)
06
Startups launching new products
07
Businesses expanding their product lines
08
Companies dealing with multiple types of goods

Documents Required to Update Business Code (HSN Code)

To renew your HSN code you have to be armed with the following documents:

GST Registration Certificate

PAN Card

Legal formalities such as registration of businesses including articles of incorporation for companies, among others.

Specific information about goods or services that require HSN codes change

Existing HSN codes (if any)

Invoice samples revealing the description of goods or services

Any technical requirements or product brochures that could be of help in classification.

Process to Update Business Code (HSN Code)

Updating your HSN code involves several steps that need to be followed carefully:

Identify the Correct HSN Code: 

Begin by conducting some research to identify the correct HSN code for your goods or services. To avoid any inaccuracies, use the official directory from HSN or consult with a professional tax advisor.

Log into the GST Portal: 

Visit www.gst.gov.in and enter your GSTIN ID and password to proceed with the procedure.

Navigate to the Amendment Section: 

After signing in, look for the ‘Services’ section on-screen. Under this, click on ‘Registration’, ‘Amendment of Registration Non-Core Fields’.

Access the Goods and Services Tab: 

In the amendment form: look for and click on ‘Goods and Services’.

Update the HSN Code: 

Here you can create a new HSN code or modify an existing code if any. Type in the new six or eight-digit HSN code depending on your type of products or services.

Provide Reasons for Change: 

There are always reasons why changes are being made to the HSN code and you need to give them. In our context, keep your answer specific, precise and simple.

Review and Submit: 

Revisit all the fields to ensure the data you have input is accurate. Bear in mind that when you are certain that all the details you have filled in are correct you can submit your application.

Digital Signature: 

Depending on the specific requirements of the application, you may need to sign it using a DSC (Digital Signature Certificate).

Track the Application: 

Upon submitting the application, an Application Reference Number (ARN) will be issued to you. It is used to monitor the progress of your application.

Respond to Queries: The tax department may request additional information or clarification on the issue per his tax return. Be ready to make a quick response to any such requests.

FAQs

How often should I update my HSN codes?

It is recommended that your HSN codes should be reviewed at least once every year or each time you roll out new products or services.

Can I use a single HSN code for all my products?

No, each product type or kind should be given a unique HSN code for the particular product type or kind. Employing one code for many products is wrong.

What happens if I use the wrong HSN code?

Failure to use the right HSN code means that one will be paying the wrong tax and may even be liable to some penalties. Specifically, the correct use of codes is a critical element.

Are HSN codes the same for all countries?

The first six digits of the HSN codes are similar to those used in other countries, a fact that is significant to exporters. But, in order to make further distinction, many countries may include more digits in their classification list.

Do service providers need to use HSN codes?

The service providers require SAC, which is an acronym for Services Accounting Code, as opposed to HSN codes. The HSN code update process is similar to the one explained above.

Related services

GST Return Filing

 Compregi files all the monthly returns on your behalf.

Cancel GST Registration

Not falling under GST Rules cancel your Registration.

HSN Code

Add your HSN Code to your GST Registration Certificate and invoices.