HSN Code Under GST
HSN Code under GST
HSN code or Harmonized System Nomenclature code number in India is a globally received product portrayal and coding framework created by the World Customs Organization (WCO).
HSN code is utilized by in excess of 200 nations as a reason for their customs tariff. At present, over 98\\\% of the stock in global exchange is ordered under HSN code With the HSN code going about as a widespread characterization for products, the Indian Government has chosen to embrace the utilization of HSN code for the arrangement of Goods under GST and services of GST.
Benefits of HSN code
Harmonized System of Nomenclature has different advantages such as mentioned below:
- It helps in ordering products everywhere throughout the country for Customs and Central Excise.
- It gives a uniform tax assessment framework everywhere throughout the world.
- More simplicity of working together globally.
- It can likewise be utilized in documenting returns, solicitations etc.
Understanding HSN code
The HSN structure contains 21 areas, with 99 Chapters, around 1,244 headings, and 5,224 sub-headings. The product's assembling and innovative unpredictability characterize the area or part to which it has a place. All things considered, every characteristic ware like vegetables, creature produce, and so forth have a place with the prior areas, while mechanical hardware is seen at the later stages.
Let us also understand how HSN code is segregated, below mentioned is the segregation of HSN code.
Example 1) - When the HSN code is of 6 digits
The HSN code for Handkerchiefs made of material issues is 62.13.90
Here, the initial 2 digits (62) speak to the section number for articles of attire and garments adornments. The following 2 digits (13) speak to the heading number for clothes. Furthermore, the last 2 digits (90) speaks to the item code for tissues made of material materials.
Example 2) - In case the HSN code is of 8 digits
When the handkerchief is processed with the help of man-made fiber, then the product type details are also mentioned in the HSN code. This increases two digits in the HSN code and makes it as 8 digit code.
The code will be 188.8.131.52.
The requirement of HSN code
- The requirement of 2-digit HSN code for products
The citizens with turnover between Rs. 1.5 crore and Rs. 5 crores in the previous money related year, need to indicate HSN codes just at 2-digit section level as a discretionary exercise for the main year of GST activities. From the second year of GST activities, referencing 2-digit part level HSN code will be compulsory for all citizens with turnover between Rs. 1.5 crore and Rs. 5 crores in the past money related year.
- The requirement of 4-digit HSN code for products
HSN code of 4 digits will be compulsory for citizens having turnover more than Rs. 5 crores in the former money related year. Turnover will be considered based on citizen's self-statement for the principal year. In the wake of finishing the main year under GST, the turnover for the earlier year will be considered for deciding the utilization of 4-digit HSN codes.
- The requirement of 8-digit HSN code for fare and import of products
HSN codes of 8 digits are obligatory if there should be an occurrence of fare and imports of goods.
Also an E Way Bill should be produced before transporting or delivering of goods and products worth more than INR 50000 inside state or between state.
HSN Code Search
You can check the details of HSN code by entering valid HSN code in the HSN code search portal. The procedure to find HSN code is not much complicated. Following is the procedure mentioned to find HSN code:
- First, log in to legaldocs.co.in and visit “HSN Code Finder”.
- According to you choose one of the options, goods or services
- Mention your category and submit
- You will easily find HSN or SAC code on k list legaldocs page
Purpose of HSN code
HSN code was produced by WCO (World Customs Organization) for cross-outskirt exchanging. Thus HSN codes came into the image to characterize one article code in number for each item accessible around the globe. Presently HSN codes are a fundamental piece of worldwide exchange and business.
It has additionally been utilized to quantify that amount of the item sent out or imported from a nation. HSN code helps in following the development of products around the globe.
HSN has been embraced by in excess of 200 nations around the globe, HSN code has been considered as a best intelligent following framework for recognizable proof and arrangement of products under household and universal exchange. More than 99 \\\% of the stock in worldwide exchange is sorted as far as the HSN code.