ICAI’s E-Handbook for Guidance on HSN Classification under GST

ICAI has released an E-Handbook for guidance on HSN classification under GST, to facilitate correct determination of applicable classification/ GST rate for respective goods and services, by considering relevant classification issues, like general rules and principles of classification, rules to be considered, steps to be followed, etc., as under:

ICAI’s E-Handbook on classification under GST (First Edition, July 2018)

Goods and services have been classified across the globe into different segments to see what rates are applicable for goods and services. It is needed to claim exemption and rate of tax applicable. Under Indirect Tax Laws, classification is the categorization of goods or services crucial to ascertain whether a subject matter is exigible to tax, exemption, rate of tax etc. In GST regime, classification of goods has to be in accordance with Customs Tariff Act which is based on the Harmonized System of Nomenclature (HSN). The classification of services is based on the service code (tariff). Classification of goods or services is a complex procedure of ascertaining whether goods or services are composite, non-composite or mixed, and how to resolve competitive entries etc.

Considering the importance of issues involved in Classification under GST, the Indirect Taxes Committee of the ICAI has come out with a solution, i.e. “E-Handbook on classification under GST”. This e-publication inter-alia covers many possible issues involved in classification exercise including general rules and principles of classification, meaning, need, principles/ rules to be considered, steps to be followed etc. for aptly classifying goods/ services. This e-handbook provides a deeper knowledge of provisions pertaining to Classification of goods and services under GST in a simplified manner along with relevant notifications issued and few judicial pronouncements.

This book is meant to facilitate ICAI members in practice as well as in industry to acquire specialised knowledge and cope-up with the challenges and complexities relating to classification of goods and services. This e-publication is an additional resource material complementing the background material under GST, for better understanding of the relevance of the Harmonized System of Nomenclature (HSN), various steps in classification, concerned notifications on the issue along with relevant case laws.

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