The Central Board of Indirect Taxes on 24th August 2021 has issued an Advisory on Harmonised System of Nomenclature (HSN) and GSTR-1 Filing. It is clarified that on examination of the HSN codes reported as missing, it has been observed that few taxpayers are trying to report truncated first 6-digits out of an otherwise valid 8-digit HSN. These truncated HSN codes are actually not available in GST Tariff at 6-digit level, with no corresponding description of goods. Therefore, these truncated 6-digit HSN are invalid.
Taxpayers are therefore advised not to create 6-digit HSN code by truncating/removing the last two digits (including “00”) of a valid 8-digit HSN code. Taxpayers should check their HSN code in Search HSN functionality provided by GSTN on GST portal and with the directory of HSN codes provided in a downloadable excel format.
