Important Keyword: Notification No. 90/2020 – Central Tax, GST 8-digit HSN codes India, CBIC chemical notification 2020, Rule 46 CGST Act, Notification 12/2017 amendment, HSN code for chemical products, GST compliance Finodha, chemical trade GST update 2020, HSN structure India 2020, GST invoice rules India,
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[F. No. CBEC-20/06/04/2020-GST]
Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Indirect Taxes and Customs
New Delhi, the 1st December, 2020
Notification No. 90/2020 – Central Tax: Seeks to make amendment to Notification no. 12/2017- Central Tax dated 28.06.2017.
[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]
G.S.R.....(E).—In exercise of the powers conferred by the first proviso to rule 46 of the Central Goods and Services Tax Rules, 2017, the Central Board of Indirect Taxes and Customs, on the recommendations of the Council, hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.12/2017 – Central Tax, dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 660(E), dated the 28th June, 2017, namely:–
In the said notification, after the first proviso, the following proviso shall be inserted, namely,-
Provided further that for class of supply as specified in column (2) and whose HSN Code as specified in column (3) of the Table below, a registered person shall mention eight number of digits of HSN Codes in a tax invoice issued by him under the said rules –
| S.No. (1) | Chemical name (2) | HSN Code (3) |
| 1 | Mixture of (5-ethyl-2-methyl-2-oxido-1,3,2-dioxaphosphinan-5-yl) methyl methyl Methyl phosphonate (CAS RN 41203-81-0) and Bis [(5-Ethyl-2-methyl-2-oxido-1,3,2-dioxaphosphinan-5-yl)methyl] Methyl phosphonate (CAS RN42595-45-9) | 38249100 |
| 2 | Dimethyl propyl phosphonate | 29313200 |
| 3 | (5-Ethyl-2-methyl-2-oxido-1,3,2-dioxaphosphinan-5-yl)methyl Methyl phosphonate | 29313600 |
| 4 | Bis[(5-Ethyl-2-methyl-2-oxido-1,3,2-dioxaphosphinan-5-yl)methyl] Methyl phosphonate | 29313700 |
| 5 | 2,4,6-Tripropyl-1,3,5,2,4,6-trioxatriphosphinane 2,4,6-trioxide | 29313500 |
| 6 | Dimethyl Methyl phosphonate | 29313100 |
| 7 | Diethyl Ethyl phosphonate | 29313300 |
| 8 | Methyl phosphonic acid with ( amino iminoethyl) urea ( 1: 1) | 29313800 |
| 9 | Sodium 3-(trihydroxy silyl) propyl Methyl phosphonate | 29313400 |
| 10 | 2,2-Diphenyl-2-hydroxyacetic acid | 29181700 |
| 11 | 2-(N,N-Diisopropylamino) Ethyl chloride hydrochloride | 29211400 |
| 12 | 2-(N,N-Dimethylamine) Ethyl chloride hydrochloride | 29211200 |
| 13 | 2-(N,N-Diethylamino)Ethyl chloride hydrochloride | 29211300 |
| 14 | 2-(N,N-Diisopropylamino)ethanol | 29221800 |
| 15 | 2-(N,N-Diethylamino )ethanethiol | 29306000 |
| 16 | Bis(2-hydroxyethyl)sulfide | 29307000 |
| 17 | 2-(N,N-Dimethylamine)ethanethiol | 29309092 |
| 18 | Product from the reaction of Methyl phosphonic acid and l,3,5- Triazine-2,4,6- triamine | As applicable |
| 19 | 3-Quinuclidinol | 29333930 |
| 20 | R-(- )-3-Quinuclidinol | 29333930 |
| 21 | 3,9-Dimethyl-2,4,8,10-tetraoxa-3,9-diphosphaspiro [5.5] undecane 3,9- dioxide | 29313900 |
| 22 | Propyl phosphonic dichloride | 29313900 |
| 23 | Methyl phosphonic dichloride | 29313900 |
| 24 | Diphenyl Methyl phosphonate | 29313900 |
| 25 | O-(3-chloropropyl)O-[4-nitro-3-(trifluoromethyl)phenyl] methylphosphonothionate | 29313900 |
| 26 | Methyl phosphonic acid | 29313900 |
| 27 | Product from the reaction of Methyl phosphonic acid and 1,2- Ethane diamine | As applicable |
| 28 | Phosphonic acid, methyl-, polyglycol ester (Exolit OP 560 TP) | 38249900 |
| 29 | Phosphonic acid,methyl-,polyglycol ester (Exolit OP 560) | 38249900 |
| 30 | Bis (polyoxymethylene) Methyl phosphonate | 39072090 |
| 31 | Poly(1,3-phenylene methyl phosphonate) | 39119090 |
| 32 | Dimethyl Methyl phosphonate, polymer with oxirane and phosphorus oxide | 38249900 |
| 33. | Carbonyl dichloride | 28121100 |
| 34. | Cyanogen chloride | 28531000 |
| 35. | Hydrogen cyanide | 28111200 |
| 36. | Trichloronitromethane | 29049100 |
| 37. | Phosphorus oxychloride | 28121200 |
| 38. | Phosphorus trichloride | 28121300 |
| 39. | Phosphorus pentachloride | 28121400 |
| 40. | Trimethyl phosphite | 29202300 |
| 41. | Triethyl phosphite | 29202400 |
| 42. | Dimethyl phosphite | 29202100 |
| 43. | Diethyl phosphite | 29202200 |
| 44. | Sulfur monochloride | 28121500 |
| 45. | Sulfur dichloride | 28121600 |
| 46. | Thionyl chloride | 28121700 |
| 47. | Ethyl diethanolamine | 29221720 |
| 48. | Methyl diethanolamine | 29221710 |
| 49. | Triethanolamine | 29221500 |
(Pramod Kumar)
Director,
Government of India
Note: The principal notification number 12/2017 – Central Tax, dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.660(E), dated the 28th June, 2017 and last amended vide notification No. 78/2020-Central Tax, dated the 15th October, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 638(E), dated the 15th October, 2020.
📚 Frequently Asked Questions (FAQs): Notification No. 90/2020 – Central Tax
Q1: What is Notification No. 90/2020 – Central Tax?
Answer:
Notification No. 90/2020 – Central Tax amends Notification No. 12/2017 – Central Tax to insert an additional proviso mandating 8-digit HSN codes on invoices for specific chemical substances and compounds.
This measure enhances product traceability, especially for sensitive chemicals that require strict regulation.
Q2: When was Notification No. 90/2020 – Central Tax issued?
Answer:
It was issued on 1st December 2020 and published in the Gazette of India, Extraordinary, to be effective immediately.
Q3: What is the legal authority behind this notification?
Answer:
The amendment is made under the first proviso to Rule 46 of the CGST Rules, 2017, which specifies details to be included in a tax invoice — including HSN codes for goods and services.
Q4: What are HSN codes and why are they important?
Answer:
HSN (Harmonized System of Nomenclature) codes are internationally recognized numerical identifiers used to classify goods in trade.
They ensure uniformity in tax reporting, prevent misclassification, and simplify customs documentation and GST compliance.
📦 Example:
HSN 29313900 represents certain phosphonic acid compounds.
The 8-digit structure ensures greater precision in identifying exact products.
Q5: What change was introduced in Notification No. 12/2017 – Central Tax?
Answer:
After the first proviso of the original notification, a new proviso was added mandating the inclusion of 8-digit HSN codes for the listed chemical supplies on every tax invoice.
This ensures better classification accuracy and international compliance under GST.
Q6: Why was the 8-digit HSN code requirement introduced?
Answer:
The decision was made to:
✅ Strengthen GST data accuracy,
✅ Curb misuse or misclassification of hazardous chemicals, and
✅ Ensure India complies with global trade obligations under WTO and Chemical Weapons Convention (CWC).
Q7: How does this notification impact manufacturers and traders?
Answer:
Manufacturers and traders dealing with listed chemicals must update their billing and ERP systems to capture 8-digit HSN codes.
Non-compliance could lead to mismatches in GST returns or penalties under Section 122 of the CGST Act.
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Q8: What if a taxpayer issues invoices without 8-digit HSN codes for these goods?
Answer:
If a registered person fails to mention the required 8-digit HSN codes, it may be treated as non-compliance with Rule 46 of the CGST Rules, attracting:
A penalty up to ₹25,000 (₹10,000 under CGST + ₹10,000 under SGST), and
Possible blockage of ITC for buyers due to invoice discrepancies.
Q9: How is this notification linked with the Chemical Weapons Convention (CWC)?
Answer:
Several listed chemicals are precursors regulated under the CWC to prevent illegal weapon manufacturing.
By mandating precise HSN codes, India strengthens its international compliance framework and enhances monitoring of sensitive trade activities.
Q10: Does this notification apply to all taxpayers?
Answer:
No.
This rule applies only to taxpayers dealing with the specified 49 chemical substances.
Other businesses can continue following the general HSN disclosure norms prescribed in Notification No. 78/2020 – Central Tax.
Q11: What systems should businesses update after this notification?
Answer:
Businesses should update:
ERP or accounting software (e.g., Tally, Zoho Books),
E-invoicing templates, and
GSTR-1 and GSTR-3B reporting modules to include 8-digit HSN codes.
Finodha can help automate GST compliance — Start your GST Filing here.
Q12: Which section of the CGST Act governs invoice issuance?
Answer:
Section 31 of the CGST Act, 2017 mandates that a registered person issuing a tax invoice must include prescribed particulars as per Rule 46 of the CGST Rules.
This notification modifies those particulars for specific chemical supplies.
Q13: What are the compliance steps for businesses dealing with listed goods?
Answer:
✔️ Identify whether your goods are among the 49 listed HSN codes.
✔️ Update tax invoice formats to reflect 8-digit codes.
✔️ Train billing and accounts staff on revised HSN mapping.
✔️ Regularly verify HSN accuracy using the GST portal.
✔️ File accurate GSTR-1 returns with 8-digit codes.
💡 Need expert help in compliance setup? Consult Finodha GST Experts.
🏁 Conclusion
Notification No. 90/2020 – Central Tax marks a major compliance step in India’s GST system by mandating 8-digit HSN codes for specific chemicals.
This change ensures accurate classification, enhanced transparency, and international regulatory alignment.
Businesses dealing with chemical goods must review their invoicing, accounting, and GST return processes to stay compliant.
✅ Ensure your GST returns reflect these updates. Start filing today with Finodha GST Return Filing.
Download PDF: Notification No. 90/2020 – Central Tax
More Information: https://taxinformation.cbic.gov.in/
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