Unique Quantity Code (UQC) under GST

What is Unique Quantity Code (UQC)?

A Unique Quantity Code (UQC) is a standardised code system used in India's Goods and Services Tax (GST) regime to specify the measurement units for goods and services. The GST system requires the use of UQCs to ensure uniformity and clarity in the reporting and compliance processes. UQCs are essential for accurate invoicing, filing of GST returns, and maintaining consistency across different business transactions.

UQCs are standardized and predefined by the GST Council, covering a wide range of measurement units such as kilograms (KG), litres (LTR), metres (MTR), pieces (PCS), and more. Each UQC corresponds to a specific unit of measure, making it easier for businesses to report the quantities of goods and services consistently. This standardisation helps avoid discrepancies and misunderstandings that can arise from using different measurement units.

In GST-compliant invoices, the quantity of goods or services must be reported using the appropriate UQC. This ensures that all stakeholders, including suppliers, buyers, and tax authorities, have a clear understanding of the quantities involved in a transaction. Accurate use of UQCs facilitates the smooth processing of GST returns and compliance with tax regulations, reducing the risk of errors and penalties.

Overall, the implementation of UQCs in the GST system promotes transparency, consistency, and efficiency in the reporting of quantities, ultimately contributing to a more streamlined and effective tax administration.

Where does UQC needs to be declared during filing?

GST Invoice Generation:

• Details on invoices: When generating GST invoices online, the Unique Quantity Code (UQC) must be declared along with the quantity of goods. This ensures clarity and consistency in the units of measurement for both sellers and buyers.
• Item description: Along with the Harmonized System of Nomenclature (HSN) code, the UQC provides a complete description of the item being transacted, facilitating accurate reporting and compliance.

GST filing online:

• GSTR-1 (outward supplies): In the GSTR-1 form, which details all outward supplies made during a tax period, the UQC must be included for each line item. This ensures that all sales transactions are reported with accurate quantity details.
• GSTR-2 (inward supplies): While filing GSTR-2, which records inward supplies, the UQC is also required for each purchase entry. This helps in cross-verifying the details provided by suppliers and maintaining consistency in the GST filing process.

E-way bill generation: When generating e-way bills for the transportation of goods, the UQC must be declared. This is crucial for accurately tracking the movement of goods and ensuring that the correct quantities are reported during transit.

HSN code reporting: The declaration of UQC alongside the HSN code in various GST filing documents ensures that the goods are properly categorized and measured. This integration is essential for uniform tax calculation and compliance with GST regulations.

Audit and compliance: During GST audits and compliance checks, the presence of UQC in filings helps tax authorities verify the accuracy of reported quantities and the correctness of tax paid. This reduces discrepancies and potential disputes.

Inventory management: Businesses need to declare UQC in their inventory records while filing GST online to maintain accurate stock levels and ensure that all transactions are properly documented and reported.

List of unique quantity codes or UQC codes

Unique Quantity Codes (UQCs) are standardised codes implemented under India's Goods and Services Tax (GST) regime to ensure uniformity and accuracy in the measurement units used for goods and services. UQCs play a critical role in GST compliance, making it easier for businesses to report quantities in a consistent and transparent manner. The use of UQCs in GST filing helps in avoiding discrepancies, ensures proper tax calculation, and facilitates smoother transactions across the supply chain.

UQCs must be declared in various GST-related documents, including invoices, returns, e-way bills, and during the GST filing process online. By aligning UQCs with Harmonized System of Nomenclature (HSN) codes, businesses can ensure that their goods are properly categorised and measured, promoting efficient tax administration and compliance.

Below is a comprehensive list of UQC codes commonly used in GST filing, along with their descriptions. This tabular representation provides a quick reference for businesses to ensure accurate reporting.

Which section should UQC be mentioned in, while filing returns?

GSTR-1 (outward supplies):

• Section 12 (H): In this section, where details of outward supplies made to registered persons are declared, UQC must be mentioned alongside the quantity of goods.
• Section 13 (I): For supplies made to unregistered persons, UQC is required to ensure clarity and accurate reporting.

GSTR-2 (inward supplies):

• Section 4: In this section, detailing inward supplies received from registered suppliers, UQC should be included with the quantity details to cross-verify transactions.

GSTR-3B (monthly summary return):

• Section 6: Here, UQC is required while reporting outward taxable supplies, helping in the accurate calculation of tax liabilities.

GSTR-9 (annual return):

• Table 17: In this part of the annual return, where the HSN-wise summary of outward supplies is provided, UQC must be mentioned for each item.

E-way bill generation:

• Item details: When generating an e-way bill, UQC is necessary in the item details section to ensure the proper tracking and reporting of goods in transit.

Conclusion

Mentioning the Unique Quantity Code (UQC) in the appropriate sections while filing GST returns ensures accurate and compliant reporting of quantities. This practice aids in preventing discrepancies and facilitates smooth tax administration. For businesses looking to streamline their operations and enhance compliance, considering a business loan can provide the necessary financial support to invest in robust accounting and reporting systems.