How to Add HSN Code in Tally

Does Your Business Require HSN Code

HSN is an abbreviation for Harmonized System of Nomenclature. This code is a system that is primarily used to categorize goods systematically. It is a 6-digit code that is used by businesses worldwide for classifying products of all kinds. Everyone uses this code, from fashion apparel to food products, electronic goods, furniture, and fittings. Any business registering an aggregate turnover exceeding INR 5 crore needs to provide an HSN code on their GST Invoices.

Steps to Add HSN Code in Tally

The steps on ‘How to add HSN code in Tally ERP 9’ are given below:
● Go to ‘Accounts Information’ and then ‘Groups’
● Click on ‘Create’ and select ‘Sales Group’ for which you want to set up HSN Code.
● Go to ‘Set/alter GST details’, then select ‘Yes’ and enter the HSN Code.

How to add HSN Code in Company Level

If you have the same HSN code for all your products/services, all you need to do is set these values at the Company Level, and it will reflect on all your company invoices. Here is how you can create HSN code in Tally on a company level :
● Go to ‘Company Information’ and then ‘Statutory Taxation.’
● Go to ‘Set/alter GST details’, select ‘Yes’ and then enter the HSN Code applicable for the company level.

How to add HSN Code in Stock Group Level

If a group of products within your company fall under a different tax rate, set the HSN for these goods at the Stock Group Level, and that rate will reflect on all items in that group. The process to add the HSN code here is listed below:
● Go to ‘Inventory Information’ and then ‘Stock Groups’
● Click on ‘Create’, Go to ‘Set/alter GST details’, select ‘Yes’, and click on the Tax Rate History Button to enter the HSN Code.

How to add HSN Code in Stock Item Level

If some items within a stock group attract a different tax rate, you should set the HSN for these goods at the Stock Item Level. The answer to your question on ‘How to enable HSN code in Tally on Stock Item level’ is given below:
● Go to ‘Inventory Information’ and then ‘Stock Item.’
● Click on ‘Create’, Go to ‘Set/alter GST details’, select ‘Yes’, and click on the Tax Rate History Button to enter the HSN Code.

How to add HSN Code in Ledger Group Level

If you have to apply the same HSN Code to different transactions, you need to set the HSN for those transactions at the ledger group level. The process on ‘How to set HSN code in Tally on Ledger Group level’ is as follows:
● Go to ‘Accounts Information’ and then ‘Group.’
● Click on ‘Create’ and select ‘Sales Group’ for which you want to set up HSN Code.
● Go to ‘Set/alter GST details’, select ‘Yes’ and enter the HSN Code.

How to add HSN Code in Ledger Level

If you have to apply the HSN Code to a similar group of transactions, then you need to set the HSN for those transactions at the ledger level for that code to be applicable for those transactions. The process to add the HSN code here is listed below:
● Go to ‘Accounts Information’ and then ‘Group.’
● Click on ‘Create’ and select ‘Sales Group’ for which you want to set up HSN Code.
● Go to ‘Set/alter GST details’, select ‘Yes’, and enter the HSN Code.

How to add HSN Code in Transaction Level

To apply the HSN Code only to a particular type of transaction, you need to set the HSN for it at the transaction level. This process allows for the code to be applicable only for that transaction. The process to add the HSN code here is listed below:
● Go to ‘Accounts Information’ and then ‘Group.’
● Click on ‘Create’ and select ‘Sales Group’ for which you want to set up HSN Code.
● Go to ‘Set/alter GST details’, select ‘Yes’, and enter the HSN Code.

If you still have any confusion, you can talk to us any time.

Sharing is Caring! Share this article on Social Media for Good Karma.

Share on linkedin
Share on facebook
Share on twitter
Share on whatsapp
Share on telegram
Share on email

Leave a Reply

Sign up for more blogs on Enterprise!

WITH EUNIMART YOU CAN GO GLOBAL & EXPAND YOUR ECOMMERCE BUSINESS ACROSS

countries

Give your colleagues the competitive edge. Send them this article directly

- read more -

Sign up for more blogs on crossborder!

WITH EUNIMART YOU CAN GO GLOBAL & EXPAND YOUR ECOMMERCE BUSINESS ACROSS

countries

Give your colleagues the competitive edge. Send them this article directly

- read more -

We Make Global Commerce Effortless!

Start your Ecommerce growth today!

ITS FREE, FOREVER, FOR SMES…