On 15 October 2020, the Central Board of Indirect Taxes and Customs has notified that businesses with an aggregate turnover (in the preceding Financial Year) up to INR 5 crores have to mandatorily quote four (4) digits of the Harmonised System of Nomenclature Code (HSN Code) in the tax invoice issued. Furthermore, in case the turnover in the preceding Financial Year (FY) is more than INR 5 crores, a six (6) digit HSN code has to be quoted. This notification will be applicable from 1 April 2021. However, on the recommendations of the Council, CBIC has announced that for the notified, 49 chemical-based products an eight (8) digit HSN/tariff code has to be mentioned in the tax invoice mandatorily from 1 December 2020 irrespective of the scale of operations.
Note: Every product is categorised under an HSN (Harmonised System of Nomenclature) Code. This helps in the systematic classification of goods across the globe. On the other hand, services are classified based on the Services Accounting Codes. As per notification number 90/2020–Central Tax, the Chemical Name and notified 8 digit HSN codes are as follows:
Chemical Name | HSN Code | |
---|---|---|
1 | Mixture of (5-ethyl-2-methyl-2-oxido-1,3,2-dioxaphosphinan-5-yl) methyl methyl methylphosphonate (CAS RN 41203-81-0) and Bis [(5-Ethyl-2-methyl-2-oxido-1,3,2-dioxaphosphinan-5-yl)methyl] methylphosphonate (CAS RN42595-45-9) | 38249100 |
2 | Dimethyl propylphosphonate | 29313200 |
3 | (5-Ethyl-2-methyl-2-oxido-1,3,2-dioxaphosphinan-5-yl)methyl methyl methylphosphonate | 29313600 |
4 | Bis[(5-Ethyl-2-methyl-2-oxido-1,3,2-dioxaphosphinan-5-yl)methyl] methylphosphonate | 29313700 |
5 | 2,4,6-Tripropyl-1,3,5,2,4,6-trioxatriphosphinane 2,4,6-trioxide | 29313500 |
6 | Dimethyl methylphosphonate | 29313100 |
7 | Diethyl ethylphosphonate | 29313300 |
8 | Methylphosphonic acid with ( aminoiminomethyl) urea ( 1: 1) | 29313800 |
9 | Sodium 3-(trihydroxysilyl) propyl methylphosphonate | 29313400 |
10 | 2,2-Diphenyl-2-hydroxyacetic acid | 29181700 |
11 | 2-(N,N-Diisopropylamino)ethylchloride hydrochloride | 29211400 |
12 | 2-(N,N-Dimethylamino)ethylchloride hydrochloride | 29211200 |
13 | 2-(N,N-Diethylamino)ethylchloride hydrochloride | 29211300 |
14 | 2-(N,N-Diisopropylamino)ethanol | 29221800 |
15 | 2-(N,N-Diethylamino )ethanethiol | 29306000 |
16 | Bis(2-hydroxyethyl)sulfide | 29307000 |
17 | 2-(N,N-Dimethylamino)ethanethiol | 29309092 |
18 | Product from the reaction of Methylphosphonic acid and l,3,5-Triazine-2,4,6- triamine | As applicable |
19 | 3-Quinuclidinol | 29333930 |
20 | R-(- )-3-Quinuclidinol | 29333930 |
21 | 3,9-Dimethyl-2,4,8,10-tetraoxa-3,9-diphosphaspiro [5.5] undecane 3,9- dioxide | 29313900 |
22 | Propylphosphonic dichloride | 29313900 |
23 | Methylphosphonic dichloride | 29313900 |
24 | Diphenyl methylphosphonate | 29313900 |
25 | O-(3-chloropropyl)O-[4-nitro-3-(trifluoromethyl)phenyl] methylphosphonothionate | 29313900 |
26 | Methylphosphonic acid | 29313900 |
27 | Product from the reaction of methylphosphonic acid and 1,2-ethanediamine | As applicable |
28 | Phosphonic acid,methyl-, polyglycol ester (Exolit OP 560 TP) | 38249900 |
29 | Phosphonic acid,methyl-,polyglycol ester (Exolit OP 560) | 38249900 |
30 | Bis (polyoxyethylene) methylphosphonate | 39072090 |
31 | Poly(1,3-phenylene methyl phosphonate) | 39119090 |
32 | Dimethylmethylphosphonate, polymer with oxirane and phosphorus oxide | 38249900 |
33 | Carbonyl dichloride | 28121100 |
34 | Cyanogen chloride | 28531000 |
35 | Hydrogen cyanide | 28111200 |
36 | Trichloronitromethane | 29049100 |
37 | Phosphorus oxychloride | 28121200 |
38 | Phosphorus trichloride | 28121300 |
39 | Phosphorus pentachloride | 28121400 |
40 | Trimethyl phosphite | 29202300 |
41 | Triethyl phosphite | 29202400 |
42 | Dimethyl phosphite | 29202100 |
43 | Diethyl phosphite | 29202200 |
44 | Sulfur monochloride | 28121500 |
45 | Sulfur dichloride | 28121600 |
46 | Thionyl chloride | 28121700 |
47 | Ethyldiethanolamine | 29221720 |
48 | Methyldiethanolamine | 29221710 |
49 | Triethanolamine | 29221500 |
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