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Published on:

November 15, 2024

Viraaj Vashishth

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Unit Quantity Codes (UQC) in GST: A Comprehensive

India's Good and Services Tax (GST) system incorporates Unit Quantity Codes (UQC) which are important components since it was designed to alleviate quantity reporting complexities in GST filings and provide room for uniformity across sectors. These UQCs are essential for businesses to report stock levels and sale accounts on the invoices and GST returns respectively so that compliance with tax laws is not cumbersome. Using UQCs absorption of errors in GST filing is reduced as well as improvements in inventory management and reporting are realized.

Role of UQC in GST Compliance

The UQC is designated as part of the compliant system of the goods and service tax. This makes it mandatory for companies and firms to use a single measurement unit while filing returns and specifically for GSTR-1 and GSTR-3B forms. It is important for taxpayers to use UQCs correctly to remain compliant; errors or omissions in such filings can easily generate notice of default and penalties for late or non-filing. In addition, UQCs assist in analyzing data for tax jurisdictions which helps in enhancing tax administration and also tracking down non-compliant businesses.

Structure and Format of UQC in GST

The structure of UQCs is fairly simple. Each UQC is denoted by a code that is used to represent a predetermined unit. Codes may be in numeric or alphanumeric form, representing both standard and non-standard units. This is how the structure looks like:

1. Standard Units: For instance, this may consist of standard units, such as kilograms (kg), liters (l), meters (m) which are used in various fields all over the world.

2. Non-Standard Units: These may include, one of the kind primary units in certain industries, such as, the unit of ‘pieces’ or ‘sets’ of some commodity.

Unit Type	UQC Code	Example Usage
Kilogram	KGS	100 KGS of rice
Liter	LTR	50 LTR of milk
Meter	MTR	200 MTR of fabric
Piece	PCS	30 PCS of garments
Set	SET	10 SET of furniture
Box	BOX	5 BOX of electronics

Table: Structure of UQCs‍

Comprehensive List of UQCs in GST

The comprehensive list of UQCs helps business units and firms in identifying and selecting the correct codes for the goods and services they have. This list considers units having their specific codes and checking patterns against one another. Below is a comprehensive list of some of the common UQC in GST:

ID	Name	Code	Priority
12	EACH	EACH	3196
5	POUCH	POCH	1759
11	CASE	CASE	1405
3	JARS	JARS	1010
44	STRIPS	STRP	693
7	COIL	COIL	585
99	NONE	NONE	414
123	BARS	BARS	381
120	INCH METER	INMT	378
119	INCH DIA	IDIA	377
118	CUBIC INCH	CUIN	376
117	JOBS	JOBS	375
116	SQUARE KILOMETERS	SQKM	374
84	PAIR	PAIR	372
94	PERSONS	PERSON	264
106	SHEETS	SHEETS	248
100	COPY	COPY	209
105	BARREL	BARREL	131
4	HANGER	HEGAR	115
46	VIALS	VIAL	94
89	MAN-DAYS	MAN-DAY	69
15	REEL	REEL	66
78	PATTA	PATTA	62
16	BLISTER	BLISTER	53
107	HOLES	HOLES	49
98	BRASS	BRASS	47
97	REAM	REAM	47
14	PADS	PADS	43
90	NIGHTS	NIGHT	38
111	LUMPSUM	LPSM	37
114	SHIFTS	SHFT	37
113	SQUARE CENTIMETERS	SQCM	37
112	WIDTH	WDTH	37
110	TRIP	TRIP	37
109	LENGTH	LGTH	37
108	LINES	LINES	37
36	MINUTES	MINS	36
80	CUBIC FEET	CUFT	22
92	SQUARE INCHES	SQIN	15
93	WEEKS	WEEK	10
77	CHUDI	CHUDI	6

Table: List of Units and Their Quantity Code in GST

How to Use UQCs While Filing GST Returns

When making the GST returns, UQCs representing the goods and services being reported should be chosen by the business concern. The following steps constitutes the process:

1. Identify the Product: Establish the unit of measurement relevant to the goods.

2. Select the UQC: Look through all UQCs and select the one that is appropriate.

3. Input in GST Forms: Insert the UQC in the correct box in the GST forms e.g. in GSTR-1.

4. Double-Check Entries: Review the whole of information entered to rule out the chances of any discrepancies.

Common Mistakes to Avoid

1. Using Non-Standard Codes: Only the prescribed UQCs should be used to avoid noncompliance.

2. Incorrect Quantity Reporting: The quantity should always be checked against the UQC to avoid discrepancies.

3. Not Updating UQCs: Be on the lookout for directives that would alter the UQCs since they will affect what you report.

Consequences of Wrongly Reporting UQI UC

The failure to report UQCs on the part of relevant businesses can also have far reaching effects. Some of these include:

1. Tax Assessment Challenges: Mistakes in the reporting of UQC would mean a lot of errors in tax that would be assessed on the business, which is also a failure.

2. Penalties: Non compliance under the GST framework would lead to penalties, which can perhaps be of an increasing nature with the increase in the error made.

3. Audit Risks: There are pitfalls that businesses may entice from tax authorities and it all leads to audits and further problems.

Case Example

The incorrect UQC reported an export shipment of goods by the business which mistook (litres) LIT for (litres) LTR. Then the shortfall in their reported GST liability caused an audit and tax penalties followed.

Conclusion

Unit Quantity Codes (UQC) carry considerable weight in the correctness and uniformity of the contained goods during the GST reporting. The UQC should be well understood by businesses in order to optimize their returns while minimizing the chances of making inaccurate or incorrect filings. Complying with the outlined procedures and policies on UQCs make it easy for businesses and other parties to adhere to principles on standardization of processes enhancing their GST processes.

FAQs

1. What is a unit quantity code in GST?

It is clear that a unit quantity code refers to the unit of measurement of a given quantity of goods and in GST filings it refers to UQC.

2. How do I find the list of units and their quantity codes in GST?

GST has a government scope and therefore units and quantity codes can be found at official government sites.

3. What is the significance of the e way bill unit quantity code?

This code addresses prescriptive challenges to reporting quantity of goods in movement in so far as GST compliance requirements are concerned.

4. Where do I locate the GST unit quantity code list?

The list of GST unit quantity codes is available either on the GST portal or on tax compliance.

5. Is there an assigned unit quantity code in the reporting of e way bills?

Yes, particular unit quantity codes are assigned for the e way bill reporting procedure in order to facilitate the transportation and invoicing processes under the GST Scheme.

6. What is the difference between the unit quantity codes in the custom department and the GST UQCs?

In customs, there may be additional units as part of unit quantity codes which are relevant to international trade, but otherwise, GST UQCs are concerned with domestic units.

7. Is it possible to enter a non-standard unit quantity code while filing in GST Returns?

Possibly, non-standard unit quantity codes would be disallowed in the GST returns filing; given the circumstances, it is necessary to make use of the requisite UQCs.

8. What should I do if I make a mistake when inputting the unit quantity code in the GST return?

The submission of a wrong unit quantity code may bring discrepancies in the tax return which has possibilities of penalties and audit by the tax authorities.

9. How often do the authorities review the GST unit quantity codes?

The GST Council undertakes reviews and updates to the GST unit quantity codes from time to time in order to accommodate the demands of the industry and the developments in the relevant measurement system.

10. I made a proposal for a new quantity unit code for GST, is this allowed?

Yes, if businesses feel that there is a need for additional or modified unit quantity codes, then they can suggest new unit quantity codes to the GST Council.