Why HSN code is required before choosing a CA firm?

Why HSN code is required before choosing a CA firm?

HSN code stands for the Harmonized system Nomenclature. This system has been introduced for the systematic classification of goods all across the globe. It is a 6 digit uniform code that classifies more than 5000 products and is accepted all over the world.

The main motto of HSN code is to make sure that GST is systematically and globally established. The code will eliminate the need to upload detailed information about the goods. The code saves time and makes filing simpler as GST returns are automated.

Different states in India presently had their own systems for classifying goods for tax rate determination. But with introduction of GST regime, there is a desire for more uniform classification at the national level. HSN standardizes the classification of merchandise under sections, headings, chapters and subheadings. This result in a 6 digit code for a commodity (two digit each representing the heading, chapters and subheadings).

So what are HSN codes?

Under GST, majority of the dealers need to adopt two-four or eight digit HSN codes for their commodities, based on their turnover for the previous year. The understanding of the codes is complicated and thus one needs to have support and guidance of professional accounting services in Delhi.

The professional accounting firm has expert accountants who know ins and outs of the HSN codes. The accountant mentions the exact codes when you will register for GST on your invoices and on your GST returns that will be needed to upload on the GST portal.

Good accounting services in Delhi help the startups and other organizations in handling HSN codes and help the entrepreneurs to adhere to the accurately handling of HSN codes.

The HSN structure contains 21 sections, with 99 chapters about 1244 headings and 5224 subheadings. The complexities of technical and manufacturing define the section or chapter to which the product belongs.

Since GST returns are completely automated, it will be hard for a layman to upload the description of the products being supplied. So qualified accountants will pick up from the registration details of the dealers and will reduce the efforts thereby. One have to be very careful in selecting HSN code while making fresh registration and it is therefore advisable to take the help of a qualified accountant who will provide expert advice and guidance in the matter.

Professional accountants help in managing and handling all the aspects of HSN codes and will make sure that your GST formalities are adhered accordingly in time. As a layman you

will be confused with the array of codes available and there are chances that you might commit mistakes while entering the number.

Many small businessmen might find it tough to find and update HSN code for goods supplied. It is therefore advisable to take the help and support of professional and expert accountants to handle your GST related matters so that the accurate HSN codes are incorporated and all the matters pertaining to GST are properly adhered to.