The HSN code you add to your products on Fynd Platform, determines the GST rate applicable to the products while generating the invoice.
Choosing applicable tax rates
Adding HSN to a single product
In the UI, you can add HSN to a new product or an existing product. Here, we are editing an existing product.
- Go to the Products section of Fynd Platform.
- Search and click the product to which you want to add an HSN code.
- Locate the Customs Information section, and click the HSN Code drop-down.
- If you know the 8-digit HSN code, you can directly type it. Else, you may read the description of the HSN code in the drop-down menu, and select it.
A single HSN code may have different GST rates depending on the nature of the product. Therefore, choose the one which is applicable to the product you create.
For HSN code 03041100, frozen fish fillets have 5% tax rate, whereas it's 0% for fresh/chilled fish fillets.
Adding 'Reporting HSN' in a Product File
As you know, a single HSN code can attract different GST rates depending on the nature of the product. It's easier to identify the correct GST rate due to the description given on UI, as shown below.
However, a drop-down in Excel can't have repeated HSN values. Therefore, a new term, Reporting HSN Code has been coined to distinguish between the different tax rates for a single HSN.
Say for HSN code 11010000,
- Reporting HSN Code
11010000H1will levy 5% tax rate for wheat or meslin flour in a unit container
- Reporting HSN Code
11010000H2will levy 0% tax rate for wheat or meslin flour not in a unit container
Before choosing a reporting HSN in your product file, do the following steps:
- Download the HSN data:
- Find the Reporting HSN applicable to your product by reading the description.
- In your product file, select the correct value from the Reporting HSN Code drop-down for your product.
- Save the product file and upload it to Fynd Platform using the Import feature.
Adding a composite (global) tax rate
If you're eligible for GST composition scheme, you can pay tax at a fixed rate, i.e. 1% to 6%, of your annual turnover depending on the products you sell.
- Go to the Profile section of Fynd Platform.
- Locate the Taxation section, and click the Add button.
- Enter the composite tax percentage in the Tax Rate field.
In spite of adding a composite tax rate, your products need to have HSN codes. The composite tax rate will be taken into consideration only during the invoicing stage, and the HSN tax rate will be ignored.