Understanding Unique Quantity Codes (UQCs) for GST Compliance

The Goods and Services Tax (GST) framework in India mandates the use of Unique Quantity Codes (UQCs) to standardize measurement units across various transactions. These codes are essential for GST compliance, appearing on the GST portal, e-way bills, and e-invoices. Therefore, all GST-registered taxpayers must understand UQC requirements.

What Are Unique Quantity Codes (UQCs)?

UQCs represent a standard unit of measurement. For instance, an invoice for one kilogram of wheat should specify '1 KGS', while one litre of oil would be indicated as '1000 MLT'.

UQC Significance Under GST Regulations

According to the Central Goods and Services Tax (CGST) Rules, it is mandatory to include the UQC or a clear description of the quantity unit on all tax invoices, credit notes, and debit notes. For example, 100 meters of fabric must be documented as '100 MTR'.

Declaring UQCs in GST Filings

UQCs are a mandatory requirement when generating e-invoices and e-way bills. They must also be accurately furnished in the HSN summary section of GSTR-1 filings.

Common Misconceptions Regarding UQC Formats

Many businesses use varied abbreviations for the same measurement unit (e.g., 'Mtr.', 'm', 'metre' for 'meter'). However, the GST portal only accepts a single, specific format—for 'METERS', it's 'MTR'. Using any other variation will result in an error during filing. To prevent issues, when utilizing the government's GSTR-1 offline tool, taxpayers should carefully select the correct code from the provided dropdown menu. Regardless of internal accounting practices, quantity details must adhere to the prescribed UQC format recognized by the GST Portal.

Comprehensive List of Unique Quantity Codes (UQCs)

While GST legislation does not explicitly define these codes, the UQC standards established under Customs Rules are currently adopted. The following table provides the GST-compliant format to assist with accurate filing. Note that only the first three letters constitute the official code, with the remainder serving as an explanation. If a suitable quantity code is not available, the 'OTH-Others' code should be used.