Harmonized System Code or also known as HSN code is a product description that is needed for GST filing. In this blog, you’ll read what GST HS code and from where you can explore the list.
This code under goods and services tax stands for HSN Code. It was established by the WCO in the year 1988. Currently, it is adopted and used by over 200 countries. It categorizes over 95% of the goods in the global marketplace and trade.
The list of HS code is classified as follows-
· Sections: Each section is devoted to different categories including animal and vegetable fat oils, living animal and animal goods, vegetable goods, and many more. There are twenty one sections in HS code list.
· Chapters: Chapters ahead classify sections. For example- dairy products, live animals, crustaceans and fish, and goods of animal come below the primary section of Living Animal and Animal goods. In addition to this, every chapter has HS code for an item. There are ninety nine chapters in this Coding System.
What is the Harmonized System Nomenclature code in Goods and Services Tax?
Since HSN code categorizes the products/commodities at a global level, the government of India decided to accept a similar technique for a simple classification of products/goods under GST tax. GST HSN Code creates the whole procedure of charging GST hassle-free and simple.
Is HS code required?
Those businessmen having gross revenue of fewer than 1.50 crore doesn’t need to enter harmonized commodity description in the GSTR-1. Those taxpayers having gross revenue between 1.50 to 5 crores are needed to identify the two digits HS code. While taxpayers with gross revenue of over 5 crores are needed to specify four digits harmonized system code for products/commodities. Though, 8 digit HSN code is compulsory in case of exporting and importing commodities/products.
Advantages of the HSN Code
Identifying the products under the HS code makes those goods/products identification simple and decreases the probabilities of misapprehension. You don’t require entering a description of services and products while filing goods and services tax returns if you fill the HS code while supplying services and products.
HS code offers a classification of products and services on the local and global level as well. HSN Code list with GST rate of products is available at our official website.
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