What is HSN Code?
HSN code stands for “Harmonized System of Nomenclature”. This system has been introduced for the systematic classification of goods all over the world and to facilitate international trade. HSN code is a 6-digit uniform code that classifies 5000+ products and is accepted worldwide.
What is Services Accounting Code (SAC)?
Like goods, services are also classified uniformly for recognition, measurement and taxation. Codes for services are called Services Accounting Code or SAC.
Search HSN or SAC Codes
Why is HSN/SAC important under GST?
The rationale of HSN/SAC codes is to make GST systematic and globally accepted. HSN/SAC codes eliminate the need to upload a detailed description of the goods/services. It saves time and makes filing easier since GST returns are mostly automated. A dealer or a service provider must provide HSN/SAC wise summary of sales in his GSTR-1 if his turnover falls in above slabs.
Why the need of HSN in India?
The World Customs Organization (WCO) have conceived and developed the HSN codes in order to classify goods from all over the world in a systematic way. It’s adopted in over 200 countries, and it covers around 98% of all goods produced and traded in, under its ambit.
India has been a member of the World Customs Organization (WCO) since 1971. It originally used 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.
Why check the HSN code?
Right HSN code for your product will minimize the errors while filing GST periodic returns and annual returns. HSN code also guides one to determine GST rates since GST rates are linked to HSN code. HSN code selection is subjective and broadly overlapping since there is general and specific code for the same item.
Hence, one may need legal and expert advice for the selection of HSN code for certain products.
We at Incorp have a dedicated team of GST experts who can help you with the HSN code selection and the corresponding GST rate in order to avoid any adverse consequence.
How can I find my product in the HSN list and its relevant HSN Code?
Use Incorp’s HSN SAC Code Search to find out both HSN codes of goods and SAC codes of services.
- ‣The HSN/SAC codes have been taken from government site (www.cbic.gov.in), and is not a complete and exhaustive list. For more details regarding HSN/SAC codes, rates and classifications, contact us. The rates given here are have been directed through government website (www.cbic.gov.in), we are not responsible any rate changes that may be due to updation from the government website, nor we vouch for accuracy of information which has been provided here.