Important Keyword: Notification 15/2017 UTGST, HSN code Lakshadweep GST, GST HSN digit requirement, UTGST HSN notification, Lakshadweep GST invoice rules, GST HSN turnover limits, CBIC HSN notification, GST invoice HSN compliance, UTGST invoice rules, GST HSN classification India,
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[F. No. S-31011/25/2017-ST-I-DOR]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 15/2017 – Union Territory Tax: Notifies Number of Digits of harmonized System of Nomenclature Code for Lakshadweep
GST: [To be published in Part II, Section 3, Sub-section (i) of the Official Gazette of India, Extraordinary]
New Delhi, the 30th June, 2017 9
Ashadha, Saka 1939
G.S.R. …..(E).— In pursuance of the first proviso to rule 46 of the Union Territory Goods and Services Tax (Lakshadweep) 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 1st day of July, 2017.
(S.R.MEENA)
Under Secretary to the
Government of India
📚 Frequently Asked Questions (FAQs): Notification No. 15/2017 - Union Territory Tax
Q1: What is Notification No. 15/2017 – Union Territory Tax?
Answer: It is a GST notification prescribing HSN digit requirements for businesses in Lakshadweep.
The notification specifies how many HSN digits must appear on invoices based on annual turnover.
Q2: What is the main 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 accuracy.
Q3: Who is exempt from mentioning HSN codes?
Answer: Businesses with turnover below ₹1.5 crore.
They were not required to mention HSN codes on invoices under this notification.
Q4: What is the HSN requirement for turnover between ₹1.5 crore and ₹5 crore?
Answer: 2-digit HSN disclosure is required.
This provides broad product classification on GST invoices.
Q5: What is the HSN requirement for turnover above ₹5 crore?
Answer: 4-digit HSN disclosure becomes mandatory.
Larger businesses must provide more detailed classification.
Q6: When did this notification become effective?
Answer: The notification became effective from 1 July 2017.
This aligned with the launch of GST in India.
Q7: Why are HSN codes important in GST?
Answer: HSN codes help identify goods accurately.
They support tax classification, return filing, e-invoicing, and audit verification.
Q8: Does this notification apply across India?
Answer: This notification specifically applies under the UTGST framework for Lakshadweep.
However, similar HSN rules exist under CGST and SGST frameworks too.
Q9: Can incorrect HSN reporting cause notices?
Answer: Yes, in certain situations.
Wrong classification may create disputes regarding tax rate or reporting accuracy.
Q10: What happens if turnover crosses the threshold later?
Answer: Businesses must comply with the higher HSN requirement.
Turnover-based compliance obligations should be reviewed regularly.
Q11: Is HSN mandatory in GST returns also?
Answer: Yes, over time HSN reporting became important in GST returns too.
GST compliance systems now rely heavily on HSN-based analytics.
Q12: Are HSN rules still evolving?
Answer: Yes.
GST authorities have gradually increased HSN disclosure requirements over the years.
Q13: Why do businesses still make HSN mistakes?
Answer: Many businesses underestimate classification complexity.
Improper ERP mapping and outdated product records are common reasons.
Q14: Is professional GST classification review useful?
Answer: Yes, especially for businesses dealing with multiple products.
Professional review helps reduce classification and reporting 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. 15/2017 – Union Territory Tax played an important role in establishing the original HSN reporting framework for GST compliance in Lakshadweep.
In simple terms, it introduced turnover-based HSN disclosure requirements so that smaller businesses could enjoy compliance relief while larger businesses maintained detailed reporting standards.
Over time, HSN compliance has become much more important under GST because modern tax systems rely heavily on automated invoice and return analytics.
Download PDF: Notification No. 15/2017 - Union Territory Tax
More Information: https://taxinformation.cbic.gov.in/
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