HSN code

Under GST, the majority of dealers will need to adopt two-, four-, or eight-digit HSN codes for their commodities, depending on their turnover the previous year.

• Businesses with turnover of less than Rs 1.5 crores will not be required to use HSN codes for their commodities.
• Businesses with turnover between Rs 1.5 crores and Rs 5 crores shall be required to use two-digit HSN codes for their commodities.
• Businesses with turnover equal to Rs 5 crores and above shall be required to use four-digit HSN codes for their commodities.
• Dealers under composition scheme will not be required to mention HSN codes in their invoices.