New HSN Codes Introduced via Finance Bill 2024: Effective from 1stOctober 2024
Posted on October 9, 2024 
The Finance Bill 2024 has incorporated significantly updates to the Harmonized System of Nomenclature (HSN) codes, with several revised amendments including the omission of some existing HSN codes, bringing in new HSN codes replacements, and the introduction of new independent HSN
codes. These changes are extremely crucial for businesses to ensure compliance, accurate tax calculations with precision, and smooth trade operations.
Let’s review these important changes and understand what they mean for various business establishments.
Omitted and Replaced HSN Codes
Certain HSN codes have been omitted and replaced with new codes w.e.f 01st October 2024 ,to streamline classifications and improve accuracy in categorizing products.
Here is a detailed breakdown of the omitted HSN codes and their corresponding replacements:
| Omitted HSN Codes | Replaced with New HSN Codes |
| 19053219 | 19053211 |
| 29222933 | |
| 57032920 | 57032921, 57032922, 57032929 |
| 69149000 | 69149010, 69149090 |
| 73081000 | 73081010, 73081090 |
| 76109020 | 76109021, 76109029 |
| 84306900 | 84306910, 84306990 |
| 85371000 | 85371010, 85371090 |
| 87059000 | 87059010, 87059090 |
| 88073000 | 88073010, 88073020 |
| 89069000 | 89069010, 89069090 |
| 93059900 | 93059910, 93059990 |
In addition to the changes mentioned above, several new HSN codes have also been introduced to cover new or a few previous products that were unclassified. These codes are aimed at improving product identification while enhancing the trade transparency.
Here is the full list of all the newly introduced HSN codes:
| HSN Code | Description |
| 19059051 | Communion Wafers : Coated With Chocolate Or Containing Chocolate |
| 19059059 | Communion Wafers : Others |
| 27101933 | Blended Aviation Turbine Fuel |
| 29061110 | Menthol: Natural Menthol |
| 29061190 | Menthol: Other |
| 29242980 | Paracetamol |
| 38180030 | Silicon Carbide Epitaxial Thin Film On Substrate |
| 38180020 | Gallium Nitride Epitaxial Thin Film On Substrate |
| 39201093 | Armour For Ballistic Protection |
| 39219027 | Architectural Membrane |
| 57032921 | 100% Polyamide Tufted Velour, Cut Pile Or Loop Pile Carpet Mats : With Jute, Rubber Latex Or Pu Foam Backing |
| 57032922 | 100% Polyamide Tufted Velour, Cut Pile Or Loop Pile Carpet Mats : With Ethylene Vinyl Acetate Or Vinyl Acetate Ethylene Or Latex Coating And/Or Extruded Polyvinyl Chloride Or Thermoplastic Polyolefin, With Special Finishes |
| 57032929 | 100% Polyamide Tufted Velour, Cut Pile Or Loop Pile Carpet Mats : Other |
| 57033931 | Tufted Velour, Cut Pile Or Loop Pile Carpet Mats With Ethylene Vinyl Acetate Or Vinyl Acetate Ethylene Or Latex Coating And/Or Extruded Polyvinyl Chloride Or Thermoplastic Polyolefin, With Special Finishes: Of 100% Polypropylene |
| 57033932 | Tufted Velour, Cut Pile Or Loop Pile Carpet Mats With Ethylene Vinyl Acetate Or Vinyl Acetate Ethylene Or Latex Coating And/Or Extruded Polyvinyl Chloride Or Thermoplastic Polyolefin, With Special Finishes: Of 100% Polyester |
| 57033939 | Tufted Velour, Cut Pile Or Loop Pile Carpet Mats With Ethylene Vinyl Acetate Or Vinyl Acetate Ethylene Or Latex Coating And/Or Extruded Polyvinyl Chloride Or Thermoplastic Polyolefin, With Special Finishes: Of 100% Polyethylene |
| 57033933 | Tufted Velour, Cut Pile Or Loop Pile Carpet Mats With Ethylene Vinyl Acetate Or Vinyl Acetate Ethylene Or Latex Coating And/Or Extruded Polyvinyl Chloride Or Thermoplastic Polyolefin, With Special Finishes: Others |
| 63079092 | Armour For Ballistic Protection |
| 65061020 | Headgear For Ballistic Protection |
| 69149010 | Other Ceramic Articles : Armour For Ballistic Protection |
| 69149090 | Other Ceramic Articles : Other |
| 73081010 | Bridges And Bridge-Sections : Portable Bridge |
| 73081090 | Bridges And Bridge-Sections : Others |
| 76109021 | Parts Of Structures, Not Elsewhere Specified : Portable Bridge |
| 76109029 | Parts Of Structures, Not Elsewhere Specified : Others |
| 84122920 | Hydraulic Systems For Use In Goods Of Chapter 89 |
| 84306910 | Pile-Drivers And Pile-Extractors; Snowploughs And Snow-Blowers : Mine Plough Machinery |
| 84306990 | Pile-Drivers And Pile-Extractors; Snowploughs And Snow-Blowers : Other |
| 84798980 | Machinery For Use In Goods Of Chapter 88 Or 89 |
| 85371010 | Boards, Panels, Consoles, Desks, Cabinets And Other Bases, Equipped With Two Or More Apparatus Of Heading 8535 Or 8536, For Electric Control Or The Distribution Of Electricity, Including Those Incorporating Instruments Or Apparatus Of Chapter 90, And Numerical Control Apparatus, Other Than Switching Apparatus Of Heading 8517 : For A Voltage Not Exceeding 1,000 V : For Use In Goods Of Chapter 88 Or 89 Or 93 |
| 85371090 | Boards, Panels, Consoles, Desks, Cabinets And Other Bases, Equipped With Two Or More Apparatus Of Heading 8535 Or 8536, For Electric Control Or The Distribution Of Electricity, Including Those Incorporating Instruments Or Apparatus Of Chapter 90, And Numerical Control Apparatus, Other Than Switching Apparatus Of Heading 8517 : For A Voltage Not Exceeding 1,000 V : Other |
| 87059010 | Special Purpose Motor Vehicles, Other Than Those Principally Designed For The Transport Of Persons Or Goods (For Example, Breakdown Lorries, Crane Lorries, Fire Fighting Vehicles, Concrete-Mixers Lorries, Spraying Lorries, Mobile Workshops, Mobile Radiological Units) : Lorries (Trucks) Fitted With Bridging Systems |
| 87059090 | Special Purpose Motor Vehicles, Other Than Those Principally Designed For The Transport Of Persons Or Goods (For Example, Breakdown Lorries, Crane Lorries, Fire Fighting Vehicles, Concrete-Mixers Lorries, Spraying Lorries, Mobile Workshops, Mobile Radiological Units) : Other |
| 87116080 | E-Bicycle Or Battery-Operated Pedal Assisted Vehicle |
| 88073010 | Other Parts Of Aeroplanes, Helicopters Or Unmanned Aircraft : Of Aeroplanes, Helicopters |
| 88073020 | Other Parts Of Aeroplanes, Helicopters Or Unmanned Aircraft : Of Unmanned Aircraft |
| 89069010 | Patrol Or Surveillance Boat, Air-Cushion Vehicle, Remote-Operated Vehicle |
| 89069090 | Other Vessels, Including Warships And Lifeboats Other Than Rowing Boats : Other |
| 93059910 | Parts And Accessories Of Articles Of Headings 9301 To 9304 : Of Goods Of Heading 9304 |
| 93059990 | Parts And Accessories Of Articles Of Headings 9301 To 9304 : Other |
Key Implications of the HSN Code Updates
1. Streamlining Accuracy: The replacements and new codes allow for a much improved and precise classification of goods, trade documentation and taxation.
2. Compliance: With the updated HSN codes, it is extremely vital that businesses ensure that they are using the correct codes in their invoices and customs filings as this will help avert penalties or disruptions in trade.
3. Transparency and Clarity: The addition of new codes and clarification on previously existing broader categories makes it easier to identify specific products with their associated tax rates, which benefits both businesses and tax authorities.
.
What Should Businesses Do?
• Update Systems: Ensure your accounting, invoicing, and ERP systems are updated with the new HSN codes at the earliest.
• Appraise Product Classifications: Assess all your products and check if any have been affected by the changes. Update the codes accordingly to avoid any GST miscalculations.
• Stay Compliant: Proper classification under the new HSN codes ensures smooth business operations and avoids legal complications.
.
Conclusion
The updates to the HSN codes w.e.f 1st October 2024 mark a significant step in the evolution of product categorization for tax and trade purposes and taking it up a notch higher. With these crucial changes, businesses must stay vigilant to remain compliant and take advantage of the improved product classification. Make sure to recheck the updated codes carefully and incorporate them into your trade and tax filings for a smooth transition.
For the most updated HSN codes list, Import Duty Rates, and GST Rates, visit Cusbuzz. By staying on top of these changes, businesses can continue to operate efficiently while ensuring compliance with the new tax regulations.
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