What is HSN?
The Harmonized System of Nomenclature or HSN has been developed by the WCO or World Customs Organization for giving a code to the various goods around the globe in a proper manner for a taxation system for finding different types of products. HSN has more than five thousand different products, and this was initiated in the year 1988. It is quite widespread and has been adopted in greater than two hundred countries for proper classification, using the base for various tariffs and also for the collection of the international trade statistics.
Search HSN Code
https://services.gst.gov.in/services/searchhsnsac
Download HSN in Excel Format
Process of working of the HSN Code
HSN code has greater than five thousand different commodity groups each of them was identified by a 6 digit code that is arranged in a logical and legal structure. HSN code is well supported by some rules to achieve a uniform structure.
HSN Code Importance
This HSN code is generally accepted across the world to classify different products which makes it easy for the HSN Code Finder for identifying various goods for foreign and domestic trade. It is also used in gathering data for understanding domestic and foreign in a better way. So, the HSN code aids the government in choosing different macroeconomic policies which are related to the trade practices of different goods.
Some of the latest updates on HSN related to GST
Some of the HSN codes which were declared on March 31, 2021:
|
Turnover of the individual/company
|
Number of the digits in HSN which needs to be declared
|
|
Below 1.5 crore
|
0
|
|
From 1.5 crore to 5 crore
|
2
|
|
Above 5 crore
|
4
|
Some of the HSN codes which were declared on April 1, 2021:
(CGST notification no. 78/2020 which was dated October 15, 2020)
Turnover of the company | Invoice document | Number of the digits in HSN which needs to be declared |
Below 5 crore | Compulsory for all B2B invoices of tax | 4 |
| Optional for some invoices of tax B2C | 4 |
Above 5 crores | Compulsory for all B2B invoices of tax | 6 |
Note:
The aggregate turnover (annual) in the preceding financial year, which is, for the invoice of the financial year 2021-22 turnover which is to be referred should be of the financial year 2020-21.
HSN Worldwide
Any HSN Finder is currently being used by greater than two hundred economies and countries for the below-mentioned reasons:-
- Customs tariffs base
- Proper classification of different products or goods
- Collection of the statistics of the international trade
This is an essential fact about the HSN which is that over 98% of the total merchandise in the international trade can be classified through HSN.
HSN in India
India has been a member of the World Customs Organization (WCO) since 1971. It was originally using 6-digit HSN codes to classify commodities for Customs and Central Excise. Later Customs and Central Excise added two more digits to make the codes more precise, resulting in an 8-digit classification. The HSN will help every taxpayer in India to search the GST rate by just entering the HSN code after which the system will automatically show the tax rate applicable on the commodity under the GST, hence simplifying the trade procedures in India.
Structure of HSN Code
The main structure of HSN has 21 Sections along with 99 Chapters, plus a total of 1,244 headings which have 5,224 subheadings. So every Section has various Chapters and each of the Chapters has various Headings. Further, each Heading has smaller Subheadings. While the Chapters and Sections have different products or goods, the Subheading and Heading denote these products in some detail.
GST and HSN
If one is importing and exporting it is essential for all the goods for having all eight digits of the HSN code under the GST.
- Chapter: There are a total of 99 chapters under the module of HSN.
- Heading: There are 1244 headings under the chapters.
- Subheading: Under the headings, there are 5224 subheadings.
Under the guidelines of WCO, the first 6 digits of the HSN code cannot be changed but the remaining four can be easily changed as it includes National tariff and Regional tariff which are changed less frequently by the customs authority of any country.
What is an HSN Code for GST?
HSN codes which were only applicable to the CEC or Central Excise and Customs, later after the GST was implemented, it is mandatory for all businesses or companies to mention the HSN codes in the invoices. Below mentioned are the GST turnover and the HSN digits which need to be written:-
The turnover below Rs 1.5 cr by any business or company – no need to mention the HSN code
The turnover between 1.5 cr and 5cr – one only needs to mention the HSN code till 2 digits
The turnover greater than 5cr – one needs to mention the HSN code till 4 digits
HSN classification was applicable in India from the CEC or Central Excise and Customs regime, but this became more detailed after GST, now two more digits have been added. So, the HSN code through the GST regime must have 8 digits.
What is SAC?
Like HSN code finders, codes meant for services are named SAC or Services Accounting Code. As goods, services too are classified evenly for taxation, measurement, and recognition purposes.
The Central Board of Indirect Tax issues SAC to classify each service. These codes are used when generating invoices against the services rendered.
Format of SAC
The SAC code comprises a unique 6-digit number that includes two numbers each for Heading, Chapter, and Subheading.
One can understand this with the help of an example given below:
SAC code meant for certification services and Legal documentation concerning copyrights patents, copyrights, and other intellectual property rights is 998213
The first two digits are the same for all services i.e. 99
The next two digits (82) stand for nature of service, in this case, legal services – Heading
The last two digits (13) stand for the detailed nature of service, i.e., legal documentation for patents – Subheading.
GST HSN Finder – Steps to Search HSN/SAC Tax Rates
You are required to follow the following steps in order to get the HSN codes for GST:
- Step 1: Firstly, you need to visit the homepage of the GST portal – https://services.gst.gov.in/services/searchhsnsac and then enter the login details like Username and Password.
- Step 2: Then you have to click on Services > User Services > Search HSN/SAC code. Then the HSN checkbox is required to be clicked.
- Step 3: Then from the Tax-Type drop-down list you have to select the tax type that you are searching for.
- Step 4: Now, the HSN code has to be entered or the name of the chapter whose rates need to be looked for under the “Search HSN Chapter by Name or Code.”
- Step 5: Now, you need to enter the HSN code of the goods whose tax rates are looked for under the “Search HSN Code” category. Then the appropriate dates from the calendar have to be selected in the “Effective Period” category.
- Step 6: Once all the details are filled in the “Search” option needs to be clicked.
While searching for SGST from the Tax Type list, you are also required to select the state for which you wish to check the tax rate.
For knowing SAC codes, you have to follow the steps listed below:
- Step 1: First of all the SAC checkbox needs to be clicked. Then you have to search the tax type you are searching for in the Tax-Type drop-down list.
- Step 2: Select the tax type you are searching for in the Tax-Type drop-down list.
- Step 3: The next step is entering the Service Classification Code (SAC) whose rates you are searching under the “Service by Name or Code.”
- Step 4: Further the appropriate dates from the calendar need to be selected in the “Effective Period” category.
- Step 5: Last but not least the “Search” option needs to be clicked and the details will be visible on the screen.
HSN code list section-wise
Sections | HSN Code List |
Section 1 | Animal products and live animals |
Section 2 | Products of vegetable |
Section 3 | Vegetable or animal oils and fats and its products of cleavage, edible fats prepared, vegetable or animal waxes |
Section 4 | Prepared foodstuffs, spirits, beverages, tobacco, vinegar, and tobacco substitutes that are manufactured |
Section 5 | Mineral products |
Section 6 | Product of allied or the chemicals industries |
Section 7 | Articles and plastics thereof, articles and rubber thereof |
Section 8 | Skins, raw hides, fur skins, leather, and articles, harness, saddlery handbags, travel goods, animal gut articles and similar containers, (other than silkworm gut) |
Section 9 | Articles of wood, wood, charcoal wood, articles of cork, cork, straw manufacturers, of esparto, plaiting materials, wickerwork and basketwork |
Section 10 | Other fibrous of the cellulosic material, pulp of wood, (waste and scrap) recovered paper and paperboard, others articles |
Section 11 | Textile and textile articles |
Section 12 | Headgear, footwear, sun umbrellas, umbrellas, walking sticks, seat sticks, riding-crops, whips, parts, articles made, prepared feathers and others artificial flowers, human hair articles |
Section 13 | Articles of plaster, stone, asbestos, cement, similar materials, mica,, glass, ceramic products and others glassware |
Section 14 | Natural or cultured pearls, precious or semi-precious stones, precious metals, metal clad with precious metal, and articles thereof, imitation jewellery, coins |
Section 15 | Articles or base metals |
Section 16 | Mechanical appliances, machinery, parts, electrical equipment, sound reproducers, recorders, souch recorders, television image and reproducers, its parts and others accessories of article |
Section 17 | Aircraft, vehicles, associated transport equipment and vessels |
Section 18 | Photographic, optical, measuring, cinematographic, precision, checking, surgical or medical instruments and its apparatus, watches and clocks, parts, musical instruments, and its accessories |
Section 19 | Ammunition, arms and its parts & accessories |
Section 20 | Manufactured articles and miscellaneous |
Section 21 | Collectors’ pieces, art works, and antiques |
HSN code chapter wise list
Below mentioned is the HSN Chapter code list:
|
Chapter Number
|
Description
|
|
Chapter 1
|
Poultry and live animals
|
|
Chapter 2
|
Edible offals and animal meat
|
|
Chapter 3
|
Fillets, fish, and some animals meat (aquatic )
|
|
Chapter 4
|
Eggs, honey, and other dairy products
|
|
Chapter 5
|
Inedible products of animal (unspecified)
|
|
Chapter 6
|
Live trees, flowers, and plants
|
|
Chapter 7
|
Vegetables
|
|
Chapter 8
|
Fruits
|
|
Chapter 9
|
Coffee, tea and spices
|
|
Chapter 10
|
Grains and cereals
|
|
Chapter 11
|
Milling industry products
|
|
Chapter 12
|
Medicinal plants, fruits and seeds
|
|
Chapter 13
|
Gums, lac, vegetable SAP, resins and extracts
|
|
Chapter 14
|
Vegetable materials and products (unspecified)
|
|
Chapter 15
|
Oils, vegetable, fats, and animal products
|
|
Chapter 16
|
Fish and and other vertebrates meat (preserved/prepared)
|
|
Chapter 17
|
Sugar confectionery, sugar, and bubble gums
|
|
Chapter 18
|
Cocoa and its products
|
|
Chapter 19
|
Pastry, bread, pizza, waffles
|
|
Chapter 20
|
Juices, fruits, jellies and jams
|
|
Chapter 21
|
Coffee, tea and some edible preparations
|
|
Chapter 22
|
Nonalcoholic beverages, vinegar and spirit
|
|
Chapter 23
|
Meals, residual products of starch, and pellets
|
|
Chapter 24
|
Tobacco and its products
|
|
Chapter 25
|
Marbles and salts
|
|
Chapter 26
|
Concentrates and mineral ores
|
|
Chapter 27
|
Petroleum, coal and other fossil fuels
|
|
Chapter 28
|
Inorganic chemicals and gases
|
|
Chapter 29
|
Hydrocarbons
|
|
Chapter 30
|
Pharma and blood products
|
|
Chapter 31
|
Unspecified products and fertilizers
|
|
Chapter 32
|
Tanning and colouring products
|
|
Chapter 33
|
Oils and cosmetics
|
|
Chapter 34
|
Waxes and soaps
|
|
Chapter 35
|
Enzymes and glues
|
|
Chapter 36
|
Industrial fireworks and explosives
|
|
Chapter 37
|
Cinematographic and photographic goods
|
|
Chapter 38
|
Clinical and chemicals wastes
|
|
Chapter 39
|
Plastic products
|
|
Chapter 40
|
Rubber and its products
|
|
Chapter 41
|
Rawhides and skins
|
|
Chapter 42
|
Leather products like wallets, bags, and handbags
|
|
Chapter 43
|
Artificial and raw fur products
|
|
Chapter 44
|
Wood charcoal and wood products
|
|
Chapter 45
|
Shuttlecock cork and natural
|
|
Chapter 46
|
Basketware, and plaiting materials, manufacturers straw, and wickerwork
|
|
Chapter 47
|
Wood pulp
|
|
Chapter 48
|
Paperboard, paper and newsprint
|
|
Chapter 49
|
Newspapers, printed books, and postal goods
|
|
Chapter 50
|
Silk
|
|
Chapter 51
|
Fine, coarse animal hair, wool, horsehair yarn and woven fabric
|
|
Chapter 52
|
Cotton
|
|
Chapter 53
|
Fabrics woven of paper yarn, vegetable textile fibres, and paper yarn
|
|
Chapter 54
|
Manmade filaments
|
|
Chapter 55
|
Manmade fibres staple
|
|
Chapter 56
|
Ropes, cables, nonwovens, felt, wadding, cordage, twine, special yarns, and articles thereof
|
|
Chapter 57
|
Textile floor coverings, carpets and others
|
|
Chapter 58
|
Lace, trimmings, tapestries, tufted textile fabrics and embroidery,
|
|
Chapter 59
|
Laminated and coated fabrics textile, special fabrics woven
|
|
Chapter 60
|
Crocheted fabrics or knitted
|
|
Chapter 61
|
Clothing accessories which is either knitted or crochet and different articles of any apparel
|
|
Chapter 62
|
Clothing accessories which is neither knitted nor crochet and different articles of any apparel
|
|
Chapter 63
|
Sets, worn clothing worn textile articles, rags, and other textile articles
|
|
Chapter 64
|
Gaiters, parts of these articles and footwear
|
|
Chapter 65
|
Headgear parts
|
|
Chapter 66
|
Walking stick, umbrellas, and accessories
|
|
Chapter 67
|
Artificial flowers, wigs, false beards
|
|
Chapter 68
|
Plaster, mica cement, and other construction materials
|
|
Chapter 69
|
Ceramic products and bricks
|
|
Chapter 70
|
All glassware products including
|
|
Chapter 71
|
Silver, gold, pearls, diamond and precious metals
|
|
Chapter 72
|
Non alloy products and iron rods, iron material and steel,
|
|
Chapter 73
|
Iron tube, railway tracks, nails, containers, sanitary wares and needles
|
|
Chapter 74
|
Copper alloy products and copper products
|
|
Chapter 75
|
Nickel alloy products and nickel
|
|
Chapter 76
|
All types of aluminium products
|
|
Chapter 77
|
(Empty category and reserved for future use)
|
|
Chapter 78
|
Lead foils, lead sheets and lead
|
|
Chapter 79
|
Zinc dust, Zinc sheets and Zinc bars
|
|
Chapter 80
|
tin bars, tin, and profiles
|
|
Chapter 81
|
Magnesium, bismuth, cobalt, and base metals
|
|
Chapter 82
|
Cutlery, agricultural tools, knives and razors
|
|
Chapter 83
|
Bells, padlocks, base metal products and safe deposit lockers
|
|
Chapter 84
|
Machinery and industrial tools
|
|
Chapter 85
|
Electronic and electrical goods
|
|
Chapter 86
|
Locomotives and railway machinery
|
|
Chapter 87
|
Motor vehicles
|
|
Chapter 88
|
Satellites, aircraft, parachute
|
|
Chapter 89
|
Cargo vessels, ships, boats,
|
|
Chapter 90
|
Medical equipment, artificial organs, photographic, monitoring systems, optical fibres, lens, and cinematographic accessories
|
|
Chapter 91
|
Clocks and watches
|
|
Chapter 92
|
All types of musical instruments
|
|
Chapter 93
|
Military weapons and arms
|
|
Chapter 94
|
Household products, furniture and lighting
|
|
Chapter 95
|
Sports goods, electronic toys and consoles for gaming
|
|
Chapter 96
|
Pencils, pens, smoking pipes and educational equipment
|
|
Chapter 97
|
Antiques and arts
|
|
Chapter 98
|
Laboratory chemical, import projects and passenger baggage
|
|
Chapter 99
|
Services
|
HSN Code FAQs:
1. If a company’s turnover is below 1.5 crore, does one need HSN code?
No, if a company’s turnover is below 1.5 crore, one does not need HSN code.
2. Why is HSN code required in GST?
It is required for easier identification of goods.
3. How many GST slabs are there?
There are 5 GST slabs like 0%, 5%, 12%, 18% and 28%.
4. How many digits are there in the GST HSN code?
There are 8 digits in the GST HSN code.
5. How to find HSN code?
To find HSN code, you need to follow the steps above.
6. Is HSN code necessary for companies?
Yes, HSN code is necessary for companies.
7. What is the full form of HSN?
The Harmonized System of Nomenclature is the full form of HSN.
8. What is the full form SAC?
Service Account Code is the full form of SAC.
9. What is the difference between SAC and HSN?
HSN is for goods while SAC is for services.
10. How many digits does SAC have?
11. What is the relationship between HSN code and GST rates?
The HSN (Harmonized System of Nomenclature) code is a globally recognized classification system for products. It plays a crucial role in determining GST rates in India. By using the HSN code list, businesses can easily identify the appropriate GST rate for their products. The GST rate finder tool allows for quick and accurate rate determination, facilitating tax compliance.
12. Do all businesses need to maintain an HSN code for their products under the GST regime, regardless of their annual turnover?
In the GST regime, all businesses, irrespective of their annual turnover, are required to maintain HSN codes for their products. The HSN code list, available in the GST rate finder, is essential for accurate tax calculation and compliance. This standardized coding system helps streamline tax reporting, making it a crucial requirement for all businesses, regardless of their turnover.
13. How can businesses determine the correct HSN code for their products under GST and ensure accurate tax rates are applied?
Businesses can determine the correct HSN code for their products under GST and ensure accurate tax rates by referring to the official HSN code list provided by the government. Additionally, they can use online tools like the GST rate finder to cross-verify the applicable tax rates for their products. Proper classification and verification of HSN codes are crucial for accurate GST compliance and tax calculation.
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