## Policy Analysis Report: Amendment to Delhi Goods and Services Tax Rules, 2017 Regarding HSN Code Disclosure
**1. Executive Summary:**
This report analyzes an amendment to the Delhi Goods and Services Tax (GST) Rules, 2017, specifically concerning the mandatory mentioning of eight-digit Harmonized System of Nomenclature (HSN) codes on tax invoices for specified chemical supplies. This amendment, effective December 1, 2020, mandates registered persons involved in the supply of specified chemicals to include the eight-digit HSN code on their tax invoices. This report details the specific changes introduced, the affected stakeholders, and the potential impact of the amendment.
**2. Introduction:**
This report aims to provide a comprehensive overview of an amendment to the Delhi Goods and Services Tax (GST) Rules, 2017, as outlined in the provided government notification. The report focuses on understanding the amendment's provisions regarding the mandatory declaration of HSN codes for specific chemical supplies, based solely on the information within the provided text.
**3. Policy Overview:**
This report analyzes an *amendment* to the existing Delhi Goods and Services Tax Rules, 2017.
* The amendment's core objective, as inferred from the text, is to enhance the specificity and accuracy of tax invoicing related to certain chemical supplies, likely for improved tracking, classification, and revenue reconciliation of these goods.
**4. Background and Rationale:**
This amendment likely addresses a need for more detailed categorization and tracking of specific chemical supplies under the GST framework. The inclusion of eight-digit HSN codes, as opposed to a less specific code, suggests a move towards greater precision in identifying and classifying these goods. This increased specificity may be necessary to address discrepancies, improve tax compliance, or facilitate better data analysis for revenue management related to these specific chemicals.
**5. Key Provisions / Changes:**
This amendment introduces a new proviso to the existing Delhi GST Rules, 2017.
* **Specific Part of Original Policy Changed:** The amendment inserts a new proviso *after the first proviso* to rule 46 of the Delhi Goods and Services Tax Rules, 2017. While the content of the original first proviso is not provided in the document, the amendment adds a new requirement related to HSN codes.
* **New Rule/Provision:** The *new* rule mandates that registered persons must mention eight digits of the HSN code on tax invoices if they are supplying goods falling under the class of supply and HSN codes specified in the provided table. This table lists 49 specific chemical names and their corresponding HSN codes.
* **Difference/Effect of Change:** The effect of this change is to require a greater level of detail on tax invoices for these specific chemicals than was previously required. Prior to this amendment, the requirement for HSN code reporting may have been less stringent (e.g., allowing for fewer digits or not mandating it for these particular items). This change enforces a precise identification standard.
**6. Target Audience and Stakeholders:**
The primary target audience and stakeholders directly affected by this amendment are:
* **Registered Persons:** Businesses and individuals registered under the Delhi GST Act who are involved in the supply of the 49 specified chemicals listed in the notification. These entities are now obligated to include the eight-digit HSN code on their tax invoices.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency/Bodies:** The Commissioner of State Tax, acting on the recommendations of the Council, is responsible for implementing and enforcing this amendment.
* **Timelines or Procedures:** The amendment came into force on December 1, 2020. The procedures involve ensuring that tax invoices issued after this date for the listed chemicals include the eight-digit HSN code as mandated.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcome of these specific changes is:
* **Improved Accuracy and Specificity:** The eight-digit HSN code requirement will lead to more accurate identification and classification of chemical supplies for GST purposes.
* **Enhanced Compliance:** The mandatory disclosure may reduce errors and improve compliance with GST regulations.
* **Better Data Analysis:** With standardized HSN codes, tax authorities can better analyze trade patterns and revenue streams related to these chemicals.
* **Reduced Ambiguity:** Minimizing potential ambiguity in identifying the specified chemical products through the implementation of eight-digit HSN codes.
**9. Conclusion:**
The amendment to the Delhi GST Rules, 2017, mandating the inclusion of eight-digit HSN codes on tax invoices for specified chemical supplies, represents a move towards greater precision and transparency in the GST system. This change is likely to impact registered persons involved in the trade of these chemicals, requiring them to update their invoicing practices. The anticipated benefits include enhanced compliance, improved data analysis, and a more streamlined GST process for these specific goods. It is crucial for the affected industry to ensure their tax invoices adhere to the requirements for smoother operations.
Key Entities Referenced
Delhi: The National Capital Territory of Delhi, where the notification is issued.
Delhi Goods and Services Tax Rules, 2017: Rules under which the powers are conferred for the amendment related to HSN codes on tax invoices.
Council: The entity on whose recommendations the Commissioner makes the amendment.
Government of National Capital Territory of Delhi: The governing body issuing the notification.
Department of Trade and Taxes Policy branch: The department responsible for the notification.
No.122017 State Tax, dated the 30th June, 2017: The principal notification being amended.
Delhi Gazette, Extraordinary, Part IV: The official gazette where the notification is published.
F.3 786POLICYGST201747080, dated the 30th June, 2017: The number of the principal notification published in the Delhi Gazette.
No. 782020State Tax, dated the 7th December, 2020: The notification number of the last amendment.
F. 2 319POLICYGST2020276285, dated the 7th December, 2020: The number of the last amended notification published in the Delhi Gazette.
HSN Code: Harmonized System of Nomenclature Code. Related to requirement of mentioning eight digits in tax invoices for specified supply classes.
SANTOSH D. VAIDYA: Commissioner State Tax
रजिस्ट्री स.ं डी.एल.- 33002/99 REGD. No. D. L.-33002/99
भारत सर कार
GOVERNMENT OF INDIA
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एस.जी.-डी.एल.-अ.-25012021-224673
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SG-DL-E-25012021-224673
असाधारण
EXTRAORDINARY
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
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भाग IV
PART IV
राष्ट्रीय रािधानी राज्य क्षत्रे दिल्ली सरकार
GOVERNMENT OF THE NATIONAL CAPITAL TERRITORY OF DELHI
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1. Mixture of (5-ethyl-2-methyl-2-oxido-1,3,2-dioxaphosphinan-5yl) 38249100
methyl methyl methylphosphonate (CAS RN 41203-81-0) and Bis[(5-
Ethyl-2-methyl-2-oxido-1,3,2-dioxaphosphinan-5-yl) methyl]
methylphosphonate (CAS RN42595-45-9)
2. Dimethyl propylphosphonate 29313200
3. (5-Ethyl-2-methyl-2-oxido-1,3,2-dioxaphosphinan-5-yl)methyl methyl 29313600
methylphosphonate
4. Bis[(5-Ethyl-2-methyl-2-oxido-1,3,2-dioxaphosphinan-5-yl) methyl]
29313700
methylphosphonate
5. 2,4,6-Tripropyl-1,3,5,2,4,6-trioxatriphosphinane 2,4,6-trioxide 29313500
6. Dimethyl methylphosphonate 29313100
7. Diethyl ethylphosphonate 29313300
8. Methylphosphonic acid with ( aminoiminomethyl) urea ( 1: 1) 29313800
9. Sodium 3-(trihydroxysilyl) propyl methylphosphonate 29313400
10. 2,2-Diphenyl-2-hydroxyacetic acid 29181700
11. 2-(N,N-Diisopropylamino)ethylchloride hydrochloride 29211400
12. 2-(N,N-Dimethylamino)ethylchloride hydrochloride 29211200
13. 2-(N,N-Diethylamino)ethylchloride 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-Dimethylamino)ethanethiol 29309092
18. Product from the reaction of Methylphosphonic acid and l,3,5-Triazine- As applicable
2,4,6- triamine
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- 29313900
dioxide
22. Propylphosphonic dichloride 29313900
23. Methylphosphonic dichloride 29313900
24. Diphenyl methylphosphonate 29313900
25. O-(3-chloropropyl)O-[4-nitro-3-(trifluoromethyl)phenyl] 29313900
methylphosphonothionate
26. Methylphosphonic acid 29313900
27. Product from the reaction of methylphosphonic acid and 1,2- As applicable
ethanediamine
28. Phosphonic acid,methyl-, polyglycol ester (Exolit OP 560 TP) 38249900
29. Phosphonic acid,methyl-,polyglycol ester (Exolit OP 560) 38249900
30. Bis (polyoxyethylene) methylphosphonate 39072090
31. Poly(1,3-phenylene methyl phosphonate) 39119090
32. Dimethylmethylphosphonate, polymer with oxirane and phosphorus 38249900
oxide
33. Carbonyl dichloride 28121100
34. Cyanogen chloride 28531000
35. Hydrogen cyanide 28111200
36. Trichloronitromethane 29049100
37. Phosphorus oxychloride 28121200
38. Phosphorus trichloride 28121300[PART IV DELHI GAZETTE : EXTRAORDINARY 3
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. Ethyldiethanolamine 29221720
48. Methyldiethanolamine 29221710
49. Triethanolamine 29221500
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DEPARTMENT OF TRADE AND TAXES
(GST-POLICY BRANCH)
NOTIFICATION
Delhi, the 22nd January, 2021
No. 90/2020 –State Tax
No. F. 2 (356)/POLICY-GST/2020/363-73.—In exercise of the powers conferred by the first proviso to rule
46 of the Delhi Goods and Services Tax Rules, 2017, the Commissioner, on the recommendations of the Council,
hereby makes the following amendment in the notification of the Government of National Capital Territory of Delhi
in the Department of Trade and Taxes (Policy branch), No.12/2017 – State Tax, dated the 30th June, 2017, published
in the Delhi Gazette, Extraordinary, Part IV, vide No. F.3 (786)/POLICY/GST/2017/470-80, dated the 30th June, 2017,
namely:–
In the said notification, after the first proviso, the following proviso shall be inserted, namely, -
Provided further that for class of supplyas 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. Chemical name HSN Code
(1) (2) (3)
1. Mixture of (5-ethyl-2-methyl-2-oxido-1,3,2-dioxaphosphinan-5-yl) methyl 38249100
methylmethylphosphonate (CAS RN 41203-81-0) and Bis [(5-Ethyl-2-methyl-2-oxido-
1,3,2-dioxaphosphinan-5-yl)methyl] methylphosphonate (CAS RN42595-45-9)
2. Dimethyl propylphosphonate 29313200
3. (5-Ethyl-2-methyl-2-oxido-1,3,2-dioxaphosphinan-5-yl)methyl methylmethylphosphonate 29313600
4. Bis[(5-Ethyl-2-methyl-2-oxido-1,3,2-dioxaphosphinan-5-yl)methyl] methylphosphonate 29313700
5. 2,4,6-Tripropyl-1,3,5,2,4,6-trioxatriphosphinane2,4,6-trioxide 29313500
6. Dimethyl methylphosphonate 29313100
7. Diethyl ethylphosphonate 29313300
8. Methylphosphonic acid with ( aminoiminomethyl) urea ( 1: 1) 293138004 DELHI GAZETTE : EXTRAORDINARY PART IV]
9. Sodium 3-(trihydroxysilyl) 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-Dimethylamino) ethyl chloride hydrochloride 29211200
13. 2-(N,N-Diethylamino)ethylchloride 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-Dimethylamino)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. Propylphosphonic dichloride 29313900
23. Methylphosphonic dichloride 29313900
24. Diphenylmethylphosphonate 29313900
25. O-(3-chloropropyl)O-[4-nitro-3-(trifluoromethyl)phenyl] methylphosphonothionate 29313900
26. Methylphosphonic acid 29313900
27. Product from the reaction of methylphosphonic acid and 1,2-ethanediamine As applicable
28. Phosphonicacid,methyl-, polyglycol ester (Exolit OP 560 TP) 38249900
29. Phosphonic acid,methyl-,polyglycol ester (Exolit OP 560) 38249900
30. Bis (polyoxyethylene) methylphosphonate 39072090
31. Poly(1,3-phenylene methyl phosphonate) 39119090
32. Dimethylmethylphosphonate, 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. Trimethylphosphite 29202300
41. Triethylphosphite 29202400
42. Dimethyl phosphite 29202100
43. Diethyl phosphite 29202200
44. Sulfur monochloride 28121500
45. Sulfur dichloride 28121600
46. Thionyl chloride 28121700
47. Ethyldiethanolamine 29221720
48. Methyldiethanolamine 29221710
49. Triethanolamine 29221500
2. This notification shall be deemed to have come into force on the 1st day of December, 2020.
SANTOSH D. VAIDYA, Commissioner (State Tax)
Note : The principal notification No.12/2017 – State Tax, dated the 30th June, 2017, was published in the Delhi
Gazette, Extraordinary, Part IV, vide No. F. 3 (786)/POLICY/GST/2017/470-80, dated the 30th June, 2017
and last amended vide notification No. 78/2020-State Tax, dated the 7th December, 2020, published in the
Delhi Gazette, Extraordinary, Part IV, vide number No. F. 2 (319)/POLICY-GST/2020/276-285, dated the
7th December, 2020.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.