HSN (Harmonized System Nomenclature)
What is an HSN Code
HSN stands for the WCO developed it as a multipurpose international product nomenclature that first came into effect in 1998 with the vision of facilitating the classification of goods all over the world in a systematic manner.
How do HSN Work
HSN is a six digit code that classifies more than 5000 products arranged in a legal and logical structure. To achieve uniform classification, the HSN is supported by well – defined rules and is accepted worldwide.
The importance of the HSN Code
While the primary purpose of the HSN code is the systematic classification of goods, It can also be used to gather data and solve problems. That would otherwise be difficult to obtain. The result is a more efficient international trade system.
HSN in India : One example
gst, rate, india,service,machine, tax ,list, work items charges, products, pipe,plastic, oil,electric,steel, water, print, part box sheet, cotton, iron, cloth wooden, led, jobs
India has been a member of the WCO (world customs organization) since 1971 . it initially employed six-digit HSN code to classify merchandise for customs as well as central excise duties . to make the codes more precise, the customs and central excise authorities went on to ad two more digits. This resulted in an eight-digit HSN classification.
Almost all goods in India are classified using the HSN classification code, which facilitates the use of HSN numbers for calculations code, which facilitates the use of HSN numbers for calculations of the Goods and Service Tax (GST). The numbers is currently begin used to categorize goods to compute GST rate in India. Under GST goods and services list classified into various products and items like pipe,plastic pipe, oil, steel, box, cotton ,cloth etc its GST rates.
Understanding the HSN Code
The HSN code contains :-
.21 sections .
The importance of HSN under GST
By using HSN codes, there is no need to upload a detailed description for each good falling under the GST .this allows for the automatic of GST returns, saving time and money for the tax authority .