GST advisory

HSN code stands for “Harmonized System of Nomenclature”. This system has been introduced for the systematic classification of goods all over the world. HSN code is an 8-digit uniform code that classifies 5000+ products and is accepted worldwide.
It is to be mentioned in the GST Invoice and GST Returns. Based on the Annual Turnover of the previous year, the number of digits to be mentioned are as follows:

Different types of GST rates on goods as notified by government in consultation with GST council are 0.25% (eg. cut and semi-polished stones), 3% (eg. pearls, diamonds, jewellery), 5% (eg. household necessities), 12% (eg. computers), 18% (eg. hair oil) and 28% (eg. aerated drinks).

If a vendor who is not registered under GST, supplies goods to a person who is registered under GST, then Reverse Charge would apply. This means that the GST will have to be paid directly by the receiver to the Government instead of the supplier. However, RCM is not applicable on all transactions. The GST department has specified certain transactions on which RCM will be applicable. Also, in RCM, once you have made the payment of tax in one month, then you can take credit for that payment in your next GST return. These rules are subject to amendment from time to time, kindly contact our Indirect tax team for any queries.

There are various cases where a refund can be claimed under GST Laws. Following are some of the situations:

» Excess balance in Electronic Cash Ledger

» ITC on the export of Goods and Services without Payment of Tax

» On account of supplies made to SEZ unit/ SEZ developer (with/without payment of tax)

» Refund on account of ITC accumulated due to Inverted Tax Structure

» On account of refund by the recipient of a deemed export

» Export of services with payment of tax

» Tax paid on an intra-State supply which is subsequently held to be inter-State supply and vice versa

» On account of refund by the supplier of a deemed export

» Excess payment of tax

» On Account of Assessment/Provisional Assessment/Appeal/Any other order

» Provide certainty in tax liability in advance in relation to an activity proposed to be undertaken by the applicant

» Attract Foreign Direct Investment (FDI) as there is clarity on the tax treatment of the proposed transaction

» Reduce litigation in the future

» Pronounce the ruling expeditiously in a transparent and inexpensive manner

» Classification of any goods or services or both;

» applicability of a notification issued under the provisions of this Act;

» determination of time and value of supply of goods or services or both;

» admissibility of an input tax credit of tax paid or deemed to have been paid;

» determination of the liability to pay tax on any goods or services or both;

» whether an applicant is required to be registered;

» whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term.

Speak to our experts who shall solve all your doubts.
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