The Central Board of Indirect Taxes and Customs (CBIC) stated that 8 digit HSN Code is important for particular goods such as chemicals used for several things to manufacture.
On 28th June 2017, CBIC changed the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.12/2017 Central Tax. For the above purposes, all these HSN codes must have 8 digit code number.
In the declared notification post-second provision is ruled which states that “various classes of supply and whose HSN Code, a registered person shall mention eight numbers of digits of HSN Codes in a tax invoice issued by him under the said rules,” procurement is applicable.
The class of supplies includes mixture of methyl methyl methylphosphonate and Bis methylphosphonate; Dimethyl propyl phosphonate; methyl methyl methylphosphonate; Bis methylphosphonate; 2,4,6-Tripropyl-1,3,5,2,4,6-trioxatriphosphinane 2,4,6-trioxide; Dimethyl methylphosphonate; Diethyl ethylphosphonate; Methylphosphonic acid with urea; Sodium propyl methylphosphonate; Carbonyl dichloride, Cyanogen chloride; Hydrogen cyanide; Trichloronitromethane; Phosphorus oxychloride; Phosphorus trichloride; Phosphorus pentachloride; Trimethyl phosphite; Triethyl phosphite; Dimethyl phosphite; etc.
HSN Codes for Internal Nomenclature
HSN is said to be (Harmonised Commodity Description and Coding System) and is known as the internal nomenclature which is made by the World Customs Organization (WCO). it is effected from 1986 so as to determine the commodities to the customs and central excise. HSN consists of 21 sections 99 chapters, 1,244 headings, and 5,224 subheadings. These are listed within the order of manufacture of a product or for the complexity of the technology.
The natural objectives like animals and vegetables seem to be in previous sections, man-made or technologically advance such as machinery which appears later. The classification of the products under HSN can be understood from the example, “Dabur Lal Dant Manjan” is not known as “ayurvedic medicine” in trade language but as “toilet preparation” and should be classified respectively.
GST Notifications No. 90/2020 for HSN Codes
