Unlock the power of GST HSN Codes with our comprehensive resource. HSN Codes play a vital role in accurately classifying goods and services, simplifying tax calculations, and ensuring compliance. Dive into the intricacies of this standardized coding system, understand its significance, and explore the extensive list of codes for seamless business operations. Stay ahead of the curve and maximize your understanding of GST HSN Codes with our informative webpage.
HSN stands for Harmonized System of Nomenclature. HSN was established and industrialised by the WCO (World Customs Organization) in 1988. Since then, five revisions have already been made worldwide. GST HSN code states more than 5000 goods and is primarily practised by more than 150 countries. This 6-digit HSN code can be utilised to classify more than five thousand commodities and is further applied for tax objectives classification. The Customs and Central Excise attached two more digits later to advance HSN code search for more reliable differentiation. It is a globally trusted multipurpose instrument for indirect taxes. More than 95% of the industry is currently monitored under the WCO, and each country is revising it, including India.
It has about 5,000 commodity groups, each identified by a six-digit code, arranged in a legal and logical structure. It is supported by well-defined rules to achieve uniform classification.
The main purpose of HSN is to classify goods from all over the World in a systematic and logical manner. This brings in a uniform classification of goods and facilitates international trade
The HSN structure contains 21 sections, with 99 Chapters, about 1,244 headings, and 5,224 subheadings.
Like goods, services are also classified uniformly for recognition, measurement and taxation. Codes for services are called Services Accounting Code or SAC
Legal documentation and certification services concerning patents, copyrights and other intellectual property rights– 998213
Notification No. 78/2020 –Central Tax, dated 15 October 2020 was published by the Central Board of Indirect Taxes and Customs to inform that the implementation of HSN code is mandatory.
If you have stated an inaccurate code as an exporter, it can lead to shipment difficulties during customs review. There can be problems like denial of import opportunities, heavy custom duty assessments, non-compliance punishments etc.
If you have used an incorrect HSN Code under GST, the buyer will not be able to claim his input tax credit. As per Section 31, an invoice must be flawless in all phases, including accurate HSN Code classNameification for declaring the input tax credit.
Section 12 – FOOTWEAR, HEADGEAR, UMBRELLAS, SUN UMBRELLAS, WALKING-STICKS, SEAT-STICKS, WHIPS, RIDING-CROPS AND PARTS THEREOF, PREPARED FEATHERS AND ARTICLES MADE THEEWITH; ARTIFICIAL FLOWERS; ARTICLES OF HUMAN HAIR
Section 16 – MACHINERY AND MECHANICAL APPLIANCES; ELECTRICAL EQUIPMENT AND PARTS THEREOF; SOUND RECORDERS AND REPRODUCERS, TELEVISION IMAGE AND SOUND RECORDERS AND REPRODUCERS, AND PARTS AND ACCESSORIES OF SUCH ARTICLES
Section 18 – OPTICAL, PHOTOGRAPHIC, CINEMATOGRAPHIC, MEASURING, CHECKING, PRECISION, MEDICAL OR SURGICAL INSTRUMENTS AND APPARATUS; CLOCKS AND WATCHES; MUSICAL INSTRUMENTS; PARTS AND ACCESSORIES THEREOF