How Do I Update the HSN Code in My GST Registration?

In India, the Goods and Services Tax (GST) is a comprehensive tax regime that has streamlined indirect taxation for businesses. One of the critical components of GST compliance is the HSN code, or Harmonized System of Nomenclature code. It helps in classifying goods for taxation purposes. Every registered taxpayer dealing in goods must mention the correct HSN code while filing GST returns, invoices, and registration details.

However, what if your product line changes, or the HSN code for your goods was entered incorrectly? In such cases, it becomes necessary to update the HSN code in your GST registration. In this article, we will explore what HSN codes are, where and why you need to update them, their advantages, types, steps to update, and answer frequently asked questions.

Where Is the HSN Code Used in GST?

The HSN code is used in several GST-related documents and processes:

• GST Registration: When registering under GST, businesses must specify the HSN codes relevant to the products they deal in.
• Invoices: Every tax invoice must mention the applicable HSN code for goods.
• GST Returns (GSTR-1, GSTR-3B): HSN summaries are a part of return filings to help classify taxable goods.
• e-Invoice Generation: HSN codes are mandatory in e-invoices to ensure harmonized classification.

Thus, any mistake in your registered HSN code can result in compliance issues or mismatched returns.

Advantages of Updating the Correct HSN Code

Updating or correcting the HSN code in your GST registration brings several benefits:

1. Avoid Legal Penalties: Mentioning incorrect HSN codes can attract penalties under GST law.
2. Accurate Tax Classification: It helps in charging the correct GST rate on products.
3. Smooth Filing of Returns: Ensures that your HSN summary in GSTR-1 is accurate.
4. Better Business Credibility: Accurate HSN usage reflects professional compliance, helpful in audits and vendor interactions.
5. Error-Free e-Invoicing: Essential for businesses covered under mandatory e-invoicing.

Types of HSN Code Requirements Based on Turnover

The number of HSN digits a business must mention depends on its aggregate turnover:

• Up to ₹5 Crore: 4-digit HSN code required for B2B invoices; no code required for B2C.
• More than ₹5 Crore: 6-digit HSN code is mandatory for all invoices.
• International Trade (Exports/Imports): 8-digit HSN code is generally used.

Understanding these thresholds helps you determine the appropriate HSN detail level for your GST registration and returns.

Step-by-Step Guide to Update HSN Code in GST Registration

Updating your HSN code in the GST portal is a straightforward process. Here is a detailed step-by-step guide:

Step 1: Log in to the GST Portal

• Go to the official GST portal
• Enter your username and password.

Step 2: Navigate to Amendment Application

• On the dashboard, go to Services > Registration > Amendment of Registration Non-Core Fields.
• This section allows changes to business details like HSN codes without requiring approval from the GST officer.

Step 3: Go to the “Goods and Services” Tab

• In the amendment application, click on the “Goods and Services” tab.
• Here, you can view and edit the HSN codes you originally entered during registration.

Step 4: Update or Add the Correct HSN Code

• Click “Edit” or “Add” to input new HSN details.
• You will need to mention:
  • Description of goods/services
  • Relevant HSN code (you can use HSN code search tools to find the correct one)
  • Turnover (optional, but recommended)

Step 5: Use HSN Code Search or Validator

Before submitting, make sure to validate the HSN code using online tools:

• HSN Code Search Tools: Several portals, including the GST portal and other tax-related websites, offer HSN code search functionality.
• HSN Validator: These tools ensure that the HSN code matches the correct description of goods and is in line with government databases.

Using these tools reduces errors and helps with classification.

Step 6: Save and Submit

• Click “Save and Continue” after entering the new HSN details.
• Go to the Verification tab, choose the authorized signatory, and submit using DSC or EVC.
• Once submitted, the changes will reflect in your registration certificate immediately.

Note: Since it’s a non-core field, no GST officer approval is required.

How to Use HSN Code Search and Validator Tools

To make sure you are updating the correct code, follow these steps:

Using HSN Code Search

1. Visit https://cbic-gst.gov.in or a reliable third-party site.
2. Enter product name or description (e.g., plastic bottles, wooden furniture).
3. Browse the suggested HSN codes and match the most accurate one.

Using HSN Validator

1. Copy the code found via search.
2. Paste it into the HSN Validator tool (often found on GST software or government-integrated platforms).
3. Ensure the code returns valid product information.
4. Confirm GST rates associated with the HSN.

This double-checking is essential for businesses with a diverse inventory.

Common Mistakes to Avoid

• Entering incorrect HSN code format (e.g., 5 digits instead of 4, 6, or 8)
• Wrong classification of goods due to hasty or uninformed input
• Skipping validation tools like HSN code search or validator
• Not updating GST invoices after making HSN changes
• Failure to use proper HSN digit format based on turnover

Avoiding these mistakes can prevent GST return mismatches and possible notices.

Conclusion

Keeping your HSN code updated in GST registration is crucial for compliance, smooth filing, and accurate tax reporting. The process is user-friendly and can be completed online without officer approval, as it’s considered a non-core amendment.

Before updating, always perform an HSN code search and use a HSN validator to ensure you select the correct code. A few minutes of extra diligence can save your business from penalties, audits, and return mismatches.

Stay updated, stay compliant.

Frequently Asked Questions

1. What is the HSN code in GST?

HSN (Harmonized System of Nomenclature) is a code used to classify goods systematically for GST purposes. It helps in applying the right GST rate to the right product.

2. Can I update HSN code anytime in GST registration?

Yes, you can update it anytime through the GST portal under the “Amendment of Registration – Non-core fields” section.

3. Is approval required for updating HSN code in GST?

No, since HSN code falls under non-core fields, no approval from a GST officer is needed.

4. How can I find the correct HSN code?

Use the HSN code search feature on the CBIC GST portal or reliable third-party tax websites. Always validate it using an HSN validator tool.

5. What if I use the wrong HSN code?

Using an incorrect HSN code can lead to GST return mismatches, errors in e-invoicing, and possible penalties.

6. Is HSN code mandatory for all businesses?

Yes, except for businesses with turnover below ₹5 crore dealing in B2C transactions. For B2B and businesses with higher turnover, it is mandatory.

7. How many digits should an HSN code have?

Depending on turnover:

• 4 digits (up to ₹5 crore B2B)
• 6 digits (above ₹5 crore)
• 8 digits (international trade)