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Businesspersons Worried About HSN Code Obligation

Businesspersons worried about HSN code obligation, this code is becoming mandatory for GST returns from 1st April.

From the first of April onwards, it has been made mandatory for all traders to mention the Harmonized System of Nomenclature (HSN) code for filing GST returns.

Small businesspersons say that this can increase their difficulties, as they may have to pay a fine of up to Rs 50,000 if there is a slight mistake in the HSN code.

From the first of April next, traders will have to mention the HSN code during the filing of all tax invoices and GSTR-1.

According to GST experts, currently, the traders doing business up to 1.5 crores annually are exempted from the HSN code.

Those with an annual turnover of Rs 1.5 crore to Rs 5 crore have to use a two-digit HSN code. At the same time, traders with more than five crore turnover have to give an HSN code of four digits.

From the first of April onwards, all those businesses with annual turnover up to 50 million will have to refer to the four-digit and six-digit HSN code for those having more than 50 million turnovers.

There will be eight-digit HSN codes for exporters. The HSN code will be mandatory in Business-to-Business (BTB) for businesses with a turnover of up to 50 million annually.

While in Business-to-Consumer (BTC) it will be optional. But it will be compulsory in all types of businesses for those with more than five crore businesses.

GST expert and chartered accountant Rajinder Arora said that the Customs Tariff Act (Customs Act) emits HSN code and it is determined according to the classification of goods.

Tax rates are determined only by the classification of goods. Arora said that if the businessman makes a mistake in the HSN code, his tax rate will be different.

If caught later, the businessman can face a fine of up to Rs 50,000 under section 125 of the GST Act.

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It seems that once again the day of Friday was chosen to bring down the market and this time also the excuse was of bond yield.

Mahashivratri was a holiday in the market and due to this gap, the Nifty opened above 15,300, but after that, it fell below the level of 15,000. In such a situation, you must see the behavior of the market of the last four Fridays.

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