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HSN Code in E-Commerce

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NEERAJ JINDAL

91 Points Posted on 25 March 2023

When a product is being offered on a E-Commerce marketplace,

How many digits of HSN Code is mandatory for all vendor?

Like 4 Digit or 6 Digit or 8 Digit

Replies (2)

Quick Summary

When selling on Indian e-commerce platforms, the mandatory HSN code length depends on your previous financial year's turnover. Vendors with up to INR 5 crore turnover can use a 4-digit HSN code. Those exceeding INR 5 crore must use a 6-digit HSN code. This is in line with guidelines from the Ministry of Finance.

Ayush

Executive

9990 Points Posted on 25 March 2023

As per the guidelines issued by the Ministry of Finance, Government of India, it is mandatory for all vendors selling goods on an e-commerce marketplace to provide the HSN (Harmonized System of Nomenclature) code for each product being sold. The minimum number of digits required for the HSN code will depend on the turnover of the vendor in the preceding financial year, as follows:

For vendors with a turnover of up to INR 5 crore in the preceding financial year: They can provide a 4-digit HSN code for their products.

For vendors with a turnover of more than INR 5 crore in the preceding financial year: They must provide a 6-digit HSN code for their products.

Pankaj Rawat

GST Practitioner

55067 Points Posted on 26 March 2023

As per Notification 78/2020 CT ,
4 Digit HSN for those whose Aggregate turnover is below 5 crore & 6 Digit HSN for those whose Aggregate Turnover is above 5 crore