GST disputes persist due to conflicting interpretations of goods, services

Classification of items for GST rates was done on the basis of harmonised system of nomenclature codes. The codes contain 21 sections. These are divided into 99 chapters, which have 1,244 headings

Disputes relating to the classification of goods and services, which determines the GST rates on individual items, continue to plague the six-year-old indirect tax system. Recently, Finance Minister Nirmala Sitharaman asked the goods and services tax (GST) officials to bring about clarity on classification-related issues as soon as possible through appropriate channels.

Classification of items for GST rates was done on the basis of the harmonised system of nomenclature (HSN) codes. The codes contain 21 sections. These are divided into 99 chapters, which together have 1,244 headings. This system helps in making GST simpler and globally