What is Duty Scrip HSN Code?

The Harmonized System of Nomenclature (HSN) code for Duty Credit Scrips in India is 4907. This classification is applied because duty credit scrips are recognized as "documents of title conveying the right to receive money."

Duty Credit Scrips (DCS) are essentially transferable instruments issued by the Indian government to exporters as incentives. They function as entitlements that can be utilized to pay customs duties on imports or can be sold to other importers.

Understanding HSN Code 4907 for Duty Scrips

The HSN Code 4907 specifically covers "Unused postage, revenue or similar stamps of current or new issue in the country in which they have, or will have, a legal tender status; stamp-impressed paper; banknotes; cheque forms; stock, share or bond certificates and similar documents of title."

Duty Credit Scrips fall under this category due to their nature as financial instruments that convey a specific monetary right. They entitle the holder to significant financial benefits, primarily tax benefits or duty exemptions on imports, aligning perfectly with the definition of documents of title.

Key aspects of Duty Credit Scrips and their HSN code:

• HSN Code: 4907
• Classification Basis: They are considered "documents of title conveying the right to receive money."
• Function: Entitle the holder to tax benefits or duty exemptions on imports.
• Purpose: To incentivize exporters and promote international trade.

Here's a quick reference table:

For more detailed information on Duty Credit Scrips, their benefits, GST implications, and sale processes, you can refer to resources like KarbonCard's blog on Duty Credit Scrips for Exporters.