When you create a product item in Zoho Books, the item form includes an HSN Code field. Enter the correct code for the type of goods. Once saved, every invoice that includes this item will display the HSN code on the invoice line, as required by GST law. The HSN code also determines which tax rate is suggested in the item’s GST rate field, though you can override this manually.
Under GST rules for India: businesses with annual turnover up to INR 5 crores are required to use 4-digit HSN codes, those with turnover between INR 5 crores and INR 50 crores must use 6-digit codes, and those above INR 50 crores must use 8-digit codes. For e-invoicing, 8-digit codes are mandatory for all items regardless of turnover. Zoho Books stores the full 8-digit code for each item and truncates the display based on your declared turnover category in organisation settings.
The GST portal and the CBIC website provide searchable HSN code lookup tools. Enter a keyword describing your product and the lookup returns the relevant HSN codes and their associated GST rates. Common codes include 8471 for computers, 8517 for mobile phones, 6204 for women’s clothing, and 0901 for coffee. Once you know the correct code, enter it in Zoho Books’s item master and it will be used on all future documents.
An HSN code in Zoho Books is the international goods classification code assigned to every product item, required on GST invoices and returns to identify the goods type and applicable tax rate.
Businesses with turnover up to INR 5 crores need 4-digit HSN codes. Those above INR 5 crores need 6-digit codes. For e-invoicing, 8-digit codes are required on all items.
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