List of HSN codes for VAT and GST rates finder (2023)

The HSN code stands for "Harmonized System of Nomenclature". This type of system was actually industrialized and introduced by the World Customs Organization (WCO) in 1988. The International HSN Code was introduced in India to systematically classify various goods and services for the rest of the world.

Normally this code consists of a six-digit code that is unified and classifies more than 5,000 products accepted worldwide in the form of exports and imports. There have been many revisions around the world over the years and the HSN code is now used in 150 countries.

The HSN code and its structure

The WCO has introduced a six-digit HSN code, which also consists of two digits for each commodity. The World Customs Organization (WCO) has issued a criterion that the six digits at the beginning of the HSN code may not be changed. However, only the last four digits can be changed and can only be changed by customs. The last four digits of the HSN code are typically used to identify the regional tariff and the national tariff.

So the two digits in the HSN code mean:

• Chapters (there are 99 chapters under the HSN module)
• Heading (there are 1244 headings under the chapters)
• Subheading (there are 5224 subheadings under the heading)
• regional tariff
• Inlandstarif

The meaning of the international HSN code

The HSN code ensures the standardization and worldwide acceptance of goods. belowVATUnder this scheme, all trading companies subject to the HSN scheme must obtain an HSN code in order to calculate the correct tax rate as determined by the respective Indian government.

Currently, the international HSN code consists of 6 digits that identify goods from more than 5,000 groups. This international code is logical and legally binding. In addition, this code is well supported by rules that contribute to a consistent classification of goods. This is important to facilitate international trade.

More than 150 countries use the international HSN code for the following main reasons:

• Uniform classification of goods
• Formation of the tariff bases
• Collection of international trade statistics

For example, more than 98 percent of the goods/goods traded worldwide are generally classified according to the international HSN code. The HSN code for all goods traded internationally is also accepted by different countries and often remains the same for almost all goods.

How HSN code is used in India

There are certain criteria on which the HSN system is based. They are listed below:

• This code is not mandatory for trading companies whose annual turnover does not exceed Rs. 1.5 crores. Any company or shop with a turnover of more than INR 1.5 million but less than INR 5 million uses a two-digit HSN code.
• Any business with a turnover of more than 5 Crores Indian Rupees requires an HSN code.
• Every export and import company or company, regardless of turnover, must use an 8-digit HSN code.

Service Accounting Code (SAC) in GST

Like goods, services can be uniformly classified in terms of recognition, valuation and taxation. Therefore, such service codes are commonly referred to as Service Accounting Code (SAC).

For example:

The Service Accounting Code, abbreviated SAC, is used in various legal documents and certification services related to patents, copyrights and other intellectual property rights. The SAC for such legal records may be number 998213, where:

(i) The first two digits are the same for all services, i.e. H. 99

(ii) The next two digits (i.e. 8 and 2) indicate the main type of service, in this case legal services.

(iii) The last two digits (i.e. 1 and 3) indicate the specific type of service, e.g. E.g. legal documentation for patents etc.

HSN code for GST in India

This code, used on goods in India after the introduction of GST, is mandatory for all taxpayers. This code is required to identify goods shipped in India as previously there was no standard system that could be implemented to identify goods. However, a standard system has now been implemented in India called GST, which can be used to identify goods to be transported from one place to another, as well as to classify each commodity. In India, HSN and SAC are used for goods and services.

There is also an important implementation of the HSN code which helps track the records, data and analysis of goods traded internationally to enforce fair GST rates in India. A valid HSN or SAC code is required, particularly when submitting a return declaration. This ensures direct compliance with the Indonesian government's new GST regulations.

HSN code list and GST rate finder

The Indian tax system has grouped more than 1,211 GST subject goods into six broad categories known as 'tax plates'. The different tax brackets that are categorized include 0 percent (or no tax), 5 percent, 12 percent, 18 percent, and 28 percent, respectively. It is very important to know which category your product or merchandise falls into. With the search function you can find the category of your product, making your search easier and faster.

With our GST tariff finder you can quickly find the HSN code of the goods or products to be invoiced.

When looking at the international list of HSN codes, it becomes clear that each traded commodity is assigned a unique six-digit code. In India, two additional digits are added to this 6-digit HSN code to further classify goods.

The purpose of this code can be explained well with an example. The total of 21 chapters consists of 99 chapters, divided into 1244 titles and 5224 subtitles. So let's take 09024020, the code for coffee beans sold in bulk, where 09 is the chapter, 02 is the heading and 40 is the product code of the coffee beans. The last two digits of the number 20 are the code that the Indian tax system assigns to coffee beans that are sold in bags and in bulk. So if it was coffee bean bags, the last two digits of the HSN code would be changed to 40 instead of 20.

Below is a cross-sectional list of HSN codes for commodity groups exported to different countries:

Note: Central Bureau of Indirect Taxes and Customs Tax on Goods and Services.
More information can be found on this website:https://www.cbic-gst.gov.in/gst-goods-services-rates.html