GST HSN code is for all services in India. Even there is SAC code for GST in India. Therefore it is better if you know about HSN code and rates under new GST tax. But first let us understand what is HSN code and what is use of GST HSN code.
HSN code meaning
HSN code is short form for Harmonized Commodity Description and Coding System. Authorities also call it as Harmonized System of Nomenclature or HSN. And main aim of HSN is that it is multi purpose international product nomenclature.
This helps in GST invoices which in turn is useful to normal people. In addition World Customs Organisation developed HSN system.
Importance of HSN codes for GST services
All businesses must declare goods they are dealing. As these goods have HSN codes it becomes easy to select tax rate under GST taxes. Thus you carefully select HSN code when registering for GST. It is also important during GST enrollment.
How should I use HSN codes?
It is simple to use HSN codes. However you should know a few things about GST HSN code and rate. First according to GST there are three types of HSN codes. While first is two digit, four digit or eight digit HSN code for various commodities. Even idea of GST return filing will be helpful in future.
Further use of HSN code depends on turnover of dealer. Here turnover is of previous financial year. Below you check what law says about HSN codes –
- Dealers who have annual turnover of less than 1.5 crore rupees do not use HSN codes even when filing returns or creating invoices
- If annual turnover of dealer is between Rs. 1.5 and Rs. 5 crore then you use two digit HSN code for GST invoices and filing returns
- When your turnover is Rs. 5 crore or above than that then you use four digit HSN code for GST invoice
- Finally you use eight digit HSN code for either import or export of goods. It is so because goods with HSN codes must match international invoice standards
List of HSN code under GST in India
You will be able to find complete list of HSN codes and rate under Goods and Services Tax in India. This GST HSN code list will be helpful to you in many ways. As you find GST HSN code for medicine, computer, textiles, mobile phone, readymade garments etc.
HSN code list for GST in India for GST enrolment or registration purposes will help you with generating tax invoices as well. Moreover as you know GST has different tax slab rates. While these rates are 5%, 12%, 18% and 28% respectively. So HSN codes apply according to annual turnover of company and tax will be as per tax slab.
If you want to know more details on GST rates & HSN codes with chapter wise. Please check below table
| Chapter 1 | Live Animals, Bovine & Poultry |
| Chapter 2 | Meat and Edible Meat offal |
| Chapter 3 | Fish Meat & Fillets |
| Chapter 4 | Eggs, Honey & Milk |
| Chapter 5 | Animal Products of Nn Edible |
| Chapter 6 | Live Trees & Plants |
| Chapter 7 | Vegetables |
| Chapter 8 | Dry Fruits & Fruits |
| Chapter 9 | Tea, Coffee and Spices |
| Chapter 10 | Cereals |
| Chapter 11 | Products of Milling Industry |
| Chapter 12 | Oil Seeds, Fruit and Parts of plants |
| Chapter 13 | Resins, Gums, Vegetable Saps & Extracts |
| Chapter 14 | Vegetable Material & Products |
| Chapter 15 | Fats, Oils, Waxes & their Fractions |
| Chapter 16 | Preparation and preserved food items |
| Chapter 17 | Sugar, Honey, Jaggery and Bubble Gums |
| Chapter 18 | Chocolate & Cocoa Products |
| Chapter 19 | Pizza, Cake, Pasta, Bread & Waffles |
| Chapter 20 | Juices, ketchup and Jam |
| Chapter 21 | Miscellaneous preps |
| Chapter 22 | Beverages, Spirits and Vinegar |
| Chapter 23 | Meals, Flours & Pellets |
| Chapter 24 | Tobacco and Tobacco Substitutes |
Thus it helps in easy payment of taxes. You can also know about GST invoice format and its rules.