Different codes
Under the GST regime, every goods or goods category and
service or service category has been given a code. For
goods, there is HSN or Harmonised System of Nomenclature
code, while for services there is SAC or Services
Accounting Code. Both these are internationally accepted
code and used in the international trade. Trade and
industry are required to use two to eight-digit code
based on their turnover or nature of the business.
Taxpayers whose turnover is above Rs.1.5 crore but below
Rs.5 crore shall use the two-digit code and the
taxpayers whose turnover is Rs.5 crore and above shall
use the four-digit code. Taxpayers whose turnover is
below Rs.1.5 crore are not required to mention the code
in their invoices. For export and import business, the
code will have 8 digits.
Return filing
Officials say that reason for not getting item-wise
detail lies in the present system of return filing.
Explaining this, Saloni Roy, Senior Director with
Deloitte India, says that the current return filing
system (where GSTR -1 and GSTR -3B are to be filed)
provides tax collection information on a consolidated
basis. “The current return filing system is unable to
throw up tax collections on an item wise/HSN wise basis
due to the return formats of GSTR 1 and 3B,” she said.
Echoing the same sentiment, Bipin Sapra, Tax Partner
with EY India, feels that the tax authorities are unable
to process the HSN wise details of revenue collection as
today the revenue collection is based on GSTR3B return.
GSTR3B return does not include the filing of HSN-wise
details of revenue and hence the details are not readily
available for collation. The GSTR1 has the details but
the same may not match with the figures of GSTR3B, given
that HSN is not a mandatory field and there is no
validation of the correctness of this data. “Once GSTN
comes out with a detailed analysis of GSTR1 data,
HSN-wise details may be available. However, GSTR1 does
not have the data of actual tax payment through cash and
credit for the HSN-wise GST liability of a company,” he
said.
Meanwhile, Roy expects that it is possible when the new
monthly return is introduced, the Government may be able
to gather and monitor item-wise tax collections.
However, this will be dependent on the format of the new
return. The new monthly return format is expected to be
in place by the year-end.
Source::: Business Line,
dated 22/05/2018.