Whats is HSN?
The Harmonized Commodity Description and Coding System generally referred to as “Harmonized System of Nomenclature” or simply “HSN” is a multipurpose international product nomenclature developed by the World Customs Organization (WCO).
It comprises about 5,000 commodity groups; each identified by a six digit code, arranged in a legal and logical structure and is supported by well-defined rules to achieve uniform classification.
The HS contributes to the harmonization of Customs and trade procedures, and the non-documentary trade data interchange in connection with such procedures, thus reducing the costs related to international trade.
In Indian Context, a taxpayer having a turnover exceeding Rs 5 crore is required to follow the HSN code of 4 digits.
For taxpayers with turnover between Rs 1.5 Crores and Rs 5 Crores in the preceding financial year, HSN codes may be specified only at 2-digit chapter level as an optional exercise to start with.
Indian authorities have further categorized six digit HSN into another two digit sub chapter,thus making total number of digit to be eight. This eight digits code will be mandatory in case of export and imports under the GST regime.
How to Create HSN Codes in Oracle Apps?
HSN Codes are Created as Repoting Codes in Oracle Financials for India.
Navigation:Oracle Financials for India --->Reporting --->Define Reporting Types
The Seeded Reporting Type Code is "GST_HSN_CODE" With Usage as Legal Reporting and Entity as Item.
We can Create HSN Codes Here and Later Attached to Items.
How to Attach HSN Code in Item Master Oracle apps?
HSN Codes are Attached to Items During Item Classification as a Part of Localization.
Navigation : Oracle Financials for India --->Item Definition--->Define Item Classification