Notification No. 14/2017 – Union Territory Tax Explained

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Notification No. 14/2017 – Union Territory Tax: Notifies Number of Digits of harmonised System of Nomenclature Code for Daman & Diu

GST: [To be published in Part II, Section 3, Sub-section (i) of the Official Gazette of India, Extraordinary]

G.S.R. …..(E).— In pursuance of the first proviso to rule 46 of the Union Territory Goods and Services Tax (Daman and Diu) Rule, 2017, the Central Government, on the recommendations of Goods and Services Tax Council, hereby notifies that the registered person having annual turnover as specified in column (2) of the Table below shall mention the digits of Harmonised System of Nomenclature Codes, as specified in the corresponding entry in column (3) of the said Table, in a tax invoice issued by them under the said notification:

Table

Serial Number	Turnover	Number of Digits of Harmonised System of Nomenclature Code
(1)	(2)	(3)
1.	Less than one crore fifty lakhs rupees	Nil
2.	More than one crore fifty lakhs rupees but less than five Crores rupees	2
3.	Five Crores rupees and above	4

2. This notification shall come into force with effect from the 1^st day of July, 2017.

(S.R.MEENA)
Under Secretary to the
Government of India

📚 Frequently Asked Questions (FAQs): Notification No. 14/2017 - Union Territory Tax

Q1: What is Notification No. 14/2017 – Union Territory Tax?

Answer: It is a GST notification prescribing HSN digit requirements for businesses in Daman & Diu.
The notification specifies how many HSN digits businesses must mention on tax invoices based on turnover.

Q2: What is the purpose of this notification?

Answer: The purpose is to standardise invoice classification requirements.
The Government introduced turnover-based HSN disclosure to balance compliance ease and reporting transparency.

Q3: Which businesses are exempt from HSN disclosure?

Answer: Businesses with turnover below ₹1.5 crore.
They were not required to mention HSN codes on invoices under this notification.

Q4: What HSN requirement applies between ₹1.5 crore and ₹5 crore turnover?

Answer: 2-digit HSN disclosure is mandatory.
This provides broad product classification in GST invoices.

Q5: What HSN requirement applies above ₹5 crore turnover?

Answer: 4-digit HSN disclosure becomes mandatory.
Larger businesses must provide more detailed classification reporting.

Q6: When did the notification become effective?

Answer: The notification became effective from 1 July 2017.
This aligned with GST implementation in India.

Q7: Why are HSN codes important under GST?

Answer: HSN codes help standardise product classification.
They support GST rate determination, invoice reporting, returns, and audits.

Q8: Does this notification apply across India?

Answer: This notification specifically applied under the UTGST framework for Daman & Diu.
However, similar HSN rules exist across GST frameworks.

Q9: Can wrong HSN reporting create GST disputes?

Answer: Yes.
Incorrect classification can lead to tax rate disputes, notices, or audit objections.

Q10: What happens when turnover crosses the threshold?

Answer: Businesses must comply with the higher HSN reporting requirement.
Turnover should be reviewed regularly.

Q11: Is HSN reporting important in GST returns also?

Answer: Yes.
Modern GST systems rely heavily on HSN-based reporting and analytics.

Q12: Why do businesses still make HSN mistakes?

Answer: Many underestimate classification complexity.
Outdated ERP systems and copied supplier codes are common causes.

Q13: Has HSN compliance become stricter over time?

Answer: Yes.
GST compliance systems today use much more automated HSN validation and analytics.

Q14: Is professional GST classification review useful?

Answer: Yes, especially for businesses handling multiple products.
Professional review helps reduce classification and compliance risks.

Q15: Where can businesses get GST compliance support?

Answer: Businesses can seek expert assistance for GST reporting and HSN compliance.
Services like GST Registration and GST Compliance are often useful for maintaining accurate GST records.

Conclusion

Notification No. 14/2017 – Union Territory Tax established the original HSN disclosure framework for GST compliance in Daman & Diu.

In simple terms, it introduced turnover-based HSN reporting so that smaller businesses received compliance relief while larger businesses maintained detailed classification standards.

Over the years, HSN reporting has become far more important because GST systems increasingly depend on automated invoice and return analytics.

Businesses should therefore treat HSN classification seriously and maintain accurate product mapping and invoice reporting practices.