HS Code Digits

HS Code in Finsys

TWO DIGIT OR FOUR DIGIT OR EIGHT DIGIT

 

Short Answer :  Finsys ERP has been configured to print the HS code you decide, and you make. You are currently free to use all combinations — 4 digits, 6 digits and 8 digit HS codes. 

You will get in Printout, what you enter in the ERP.

Recommendation

Use the 8 Digits in your ERP Software, if you are company of Medium or Large Size ( example Turnover over Rs 15 Crores per annum )

Why HS Code is compulsory in Invoice ?

It is requried, else, How will the ERP calculate the GST, if you dont enter the HS Code ?

Why is HS Code compulsory in Purchase Order  ?

It is required, or How will the ERP pass the Purchase voucher if the PO does not carry the HS Code ? 

Can I fill up BLANK HS Code ?

Answer is NO.   You cannot have it Blank. You have to fill at least 4 characters.

Can I fill up Zero’s or a dots (.) as HS Code ?

Technically ERP will ask minimum 4 characters. You can fill them up it as “0” or a dot (.) etc. but at your own risk. 

My Vendor is not giving me the HS Code ? What to do ?

See the HS code of that item, from the Internet. All over the world the HS code of that item is same. Whether India, or USA, or Europe or Japan. The code remains same. Indian Excise Dept or Customs Dept already use them. Ready reference on our website — Click Here for that page.

My Two Vendors are giving me different HS Code for same item ? What to do ? 

One item has only one HS code throughout the world. Nobody has any choice legally speaking. The only way out is to convince them to come to a common correct code. This is required to be same, if the item code is same in your Finsys ERP. If the item code is different, then no worries.

Someone tells me that GST credit ITC will not be available if the HS code is wrong ?

That may not happen, since the ITC is flowing between the supplier and customer based on their GST number, Invoice number and invoice date, plus accepting the purchase bill by the customer on the GST portal.  The HS code is good info, but probably it will not effect you at this stage.

How many digits should I fill up ?

We know that The Excise Tariffs were always 8 digits in India. The International HS Codes are also Eight digits (8) across the world. Customs Department also works on eight digits Tariff Number.

Recently with GST coming in, the Government of India put in that the HS Codes would be done for every Item in every Invoice.

Due to public concern, and to make things easier Government has temporarily given a relief. This temporary relief says turnover up to 1.5 crores per annum requires two digit HS Codes. Rs. 1.5 to 5 crores chapter heading ( 2 digit) is sufficient you can nearly says that is is Item of Steel, Plastic or Rubber irrespective of its uses

And if Annual Turnover more than Rs. 5 crores you have to give four digits HS Codes. In Export you have to give eight digits HS Codes.

Import also, all 8 digits required.

Finsys Opinion :- 

Experts in the field feel that this Relief is temporary.

In future, government is expected to ask for Tariff No. wise Data. The summary details may be of  two or four digits for time being. This is basically meant to make the life easy for small traders and the people who are coming in to the GST for the first time in their lives.

However all our Finsys ERP Clients have been covered in Excise for years, they know what Tariff means and in future if the data is made wrongly there is no way to get out of the data in eight digits format.

Hence as Finsys and after speaking to various experts and clients, we have proposed that we must  making eight digits Tariff as compulsory for the ERP Data point of view and Invoices point of View.

Next : What will be done in the GST Returns ?

For the time being, till the time GST Returns are of four digits. We would take the First Four Digits of the HS Codes automatically so the  E-Filing of the GST Returns would happen with the First Four Digits of the Tariff No.

However  your operation points of view you must work on all eight digits . This is recommended for your long term benefit.

Future change is very difficult. Hence Let us all follow the standard international 8 digit code. And Spirit of the Law is to bring things to standard Eight digits in future ( as per experts in this line)

 

Next,

How to update the Eight Digits Item Code for all your Finished Goods , Raw Materials

There is a facility of bulk upload. The bulk upload Powerpoint is Attached Here <click here>.

Please use this. You have a facility of uploading HS Codes of all 1000 Items or even may be 5000 Finished Goods in one go. Please use it .

Thank you

Got a Query ?

Click here

Note : Finsys ERP has been configured to print the HS code you decide, and you make. You are currently free to use all combinations — 4 digits, 6 digits and 8 digit HS codes.  

Can I fill up a Zero or a dot (.) as HS Code ?

Technically ERP will ask minimum 4 characters.

Link to HS Codes

1. Indian Link

http://www.cybex.in/HS-Code/Default.aspx

2. US Link

https://hts.usitc.gov/ 

3. European Union 

https://www.tariffnumber.com/

4. Japan Link

http://www.customs.go.jp/english/tariff/2017_5/index.htm

The Indian Official site on GST.GOV.in has not yet hosted the full Tarriff List.

Probably, since the official list is going to contain all 8 digits, and currently the Government has assured the small traders that they can forget the 8 digits for time being.