HSN codes and GST rates

How O2M fills a product's HSN code and GST rate, and what to do when a price change needs a different rate.

Overview

Every product needs an HSN code, the GST classification of the goods, and a GST rate. O2M fills both from the product's category and price, and tells you when a price change needs a different rate.

Why use it

Save looking up codes and rates for every product.
Charge the right GST when a price crosses a rate limit.
Fill codes for imported products in one go.

Filled for you on the product form

When you choose a category on a new product, O2M fills HSN code and GST rate (%) for you and marks both auto. The description of the code is shown under the HSN field, so you can check it is the right one.

Figure 4.1 A T-shirt at ₹799: HSN 6109 and 5% GST, filled automatically.

The rate follows the Selling price. Some goods pay a different rate above a price limit: clothing and footwear pay 5% up to ₹2,500 per piece and 18% above. Change the price and an auto rate changes with it.
Before you enter a price, such goods show both rates, for example 5% up to ₹2,500 · 18% above.
Selling prices include GST. O2M takes the GST out before comparing the price with the limit, as the GST rules do.
A value you type or pick yourself is never replaced. If the price later suggests another rate, the suggestion appears under the field instead.

Tip Companies with O2M-SI see Suggest with O2M-SI under the HSN field when the category does not give a code. O2M-SI reads the title and description and suggests one.

When a price change needs another rate

O2M never changes a saved GST rate by itself. If a price changes later (on the product form, a bulk edit, an automation, a channel sync or Update stock & price on Listings & Channels) and the new price falls on the other side of a limit, the product is marked GST rate may need review, with the rate that price needs.

Figure 4.2 Master Products filtered by GST rate to review.

1Open Master Products and choose GST rate to review in the GST filter.
2Open each product and set GST rate (%) to the rate shown, or change the price back.
3Save. The mark goes away once the prices and the rate agree.

Good to know Channel prices count too. A product sold at ₹1,999 on your website and ₹2,999 on a marketplace can need two different rates, so check it with your accountant.

Tax codes on marketplaces

Marketplaces put GST on their invoices from a tax code on each listing. O2M sets that code for you from the product's GST rate: Amazon's product tax code, Flipkart's tax code, and whether Shopify charges tax.

A product needs a GST rate before it can be listed on Amazon or Flipkart. Enter 0 if it is exempt.
For products already live, select them in Master Products and click Update live listings in the bar above the list. Each one is sent again to Amazon and Shopify with its saved details and the tax code from its GST rate.
On Orders, a sale a marketplace invoiced at 0% although the product is taxable is marked 0% on invoice. GST at the product's rate is still owed, so update that listing.

Fill missing HSN codes

Products imported from a channel or a file can arrive without an HSN code. You can fill them in one go.

1In Master Products, choose No HSN code in the GST filter.
2Select the products, then click Fill missing HSN in the bar above the list.
3Confirm. Each product gets the code for its category, and its GST rate if it had none.

Figure 4.3 Fill missing HSN for the selected products.

Figure 4.4 O2M asks before changing anything.

Products that already have an HSN code are never changed. A product whose category gives no code is listed in a message: give it a category, or type its HSN code on the product.