HSN Classification under Customs & GST Law!

Episode Duration:
80 minutes

Episode Background:

The Harmonized Commodity Description and Coding System generally referred to as ‘Harmonized System of Nomenclature’ or simply ‘HSN’ is a multipurpose international product nomenclature developed by the World Customs Organization (WCO). In this context, the classification of goods under a particular tariff heading is to be undertaken after analysing the competing tariff headings in the Tariff Act read with the General Rules of Interpretation (GRI) provided under the Act. Notably, the classification of the goods for the purposes of levy of Goods and Services Tax (GST) is also based on the HSN code of the respective goods.

However, companies often neglect the classification, which might result in significant costs, e.g., the wrong amount of duty being paid or improper use of free trade agreements or violation of restrictions on imports/exports of restricted goods. In many cases, prima facie the goods can be classified in multiple codes and the importer may end up paying higher duty by using an incorrect HSN Code. The classification also needs to be revisited in light of the amendments in the Customs Tariff (due to changes in HSN Codes) or judgments impacting the classifications.

What shall the episode cover?

Taxsutra in association with BDO in India is delighted to present to you a special episode on the theme of “HSN Classification under Customs & GST Law”. In this episode, Mr. R Parthasarathy (Advisor - Indirect Tax, BDO India) provided razor sharp analysis on the aforementioned topic.