Wrong HSN code

Dear Nitin Ji,

In my view though there may not be any problem with respect to tax liability as you have clarified that the item is nil rated, there is very less scope for risk wherein the department may impose penalty under 122 (xvi) fails to keep maintain books and other documents in accordance with the Act.

However , you can litigate on the ground it was by mistake, under bonafide beleif. Nevertheless mention correct HSN for subsequent period.