GSTLegal Advice

How Do I Find My 6 Digit HSN Code?

HSN is an acronym for ‘Harmonised System of Nomenclature,’ which was created by the World Customs Organisation (WCO) to standardise the classification of goods worldwide. HSN has a six-digit universal code that defines over 5,000 goods and is accepted globally.

What Exactly Is an HSN Code?

How to find my 6 digit HSN code: It removes uncertainty and makes it easier to conduct business on a national and worldwide scale. Over 20,000 goods are traded using HSN codes across countries throughout the world. More than 90% of global trade is handled by the WCO using the new HSN codes. By approving the HSN codes procedure, India has now joined the community.

In India, Who Is Required to Utilise the HSN Code?

HSN codes are widely used by retailers and wholesalers in India. They should utilise 2 digit, 4 digit, or 8 digit HSN codes for trading in India or outside of India based on the following laws and notifications:

  • The HSN codes are not necessary if the business turnover is less than 1.5 crores; however,if the business turnover is between 1.5 crores and 5 crores, the HSN codes must be used for commercial trades
  • Only four-digit HSN numbers can be used for companies with annual revenues of more than 5 crores. 

8-digit HSN numbers are required for import and export transactions, as well as international exchanges.

  • Items are categorised into distinct 21 divisions, 99 chapters, 1244 headings, and 5244 subheadings under the HSN module, for example: Almost all commodities in trade are covered
  • HSN Code: 39 08 90 20 at random from the list of HSN codes
  • The first two numbers reflect the HSN code chapter (39)
  • The following two numerals (08) are the chapter headers
  • The next two digits (90) denote the sub-headings, followed by six digits. The HSN code is recognised internationally
  • The following two digits (20) subdivide the tariff heading of the products during supply import and export

Under India’s GST system, using HSN codes would help you save time and money.

What Is the Significance of the HSN Code?

Because the HSN Code is a globally recognised product classification standard, it provides a reasonable manner of identifying commodities for both domestic and international trade.It can be used to collect data and comprehend foreign and domestic trade that occurs both within and outside the country in a far more effective manner. This will also aid the government in determining macroeconomic policies pertaining to the trade of certain commodities.

Who Offers HSN Code?

DGFT is in charge of any revisions, formulation, or addition of new codes to the HSN Codes (Directorate General of Foreign Trade).As part of the continual process of refining HSN Codes, changes to product descriptions, the removal of dead codes, the insertion of new codes, and so on are made on a regular basis.

How Does the HSN Code Search Work

Enter the name of your product to get a list of the most relevant 4 digit HSN Codes. If none of the recommendations have the correct HS code, click search to get all results. Click on the 4 digit code to see the 6 and 8 digit HS codes for export-import reasons, as well as the GST rates.

Enter the first two or four digits of the HSN Code to begin your search.

SEARCH YOUR HSN CODE HERE !

How to Utilise an HSN Code With a Category List

Under All Categories, we have divided the list of HSN Codes into 23 major divisions. Navigate from this menu to the 2 digit, 4 digit, 6 digit, and 8 digit HSN Codes. By clicking on a four-digit code, you may find GST rates for HSN Codes.

Is It Necessary to Have an HSN Code?

The ITC-HS Codes are required for exports.Otherwise, the export incentives will be forfeited if the 8-digit HSN Code is not supplied on the shipping bill. HSN Codes are not required under GST for businesses with a turnover of less than 1.5 crore or if the dealer is registered under the GST Composition Scheme.

Additional Information About HSN Code and GST

An HSN or tariff number would be required on all invoices issued by GST-registered businesses with a turnover of more than 5 crore, according to the Ministry of Finance. On April 1st, 2021, the rule went into force.

“Having effect from April 1, 2021, a GST taxpayer with a prior fiscal year turnover of more than  5 crore must submit a 6 digit HSN Code (Harmonised System of Nomenclature Code) or, as the case may be, SAC (Service Accounting Code) on invoices issued for deliveries of taxable goods and services. There is an HSN code requirement on B2B invoices if the previous fiscal year’s turnover was up to 5 crore. Previously, the number of digits required was four and two.”

Six-digit HSN codes are commonly used for commodities. Consequently, both Customs and the GST utilise the identical HSN codes. Consequently, the codes from the Customs Tariff are also used for GST (as has been specifically mentioned in the GST rate schedule). Headings (4 digits HS), subheadings (6 digits HS), and tariff items are all categorised under HS codes in Customs Tariffs (8 digits).

Furthermore, the GST portal includes an HSN search function. HSN Codes are extensively used by manufacturers and importers/exporters. Manufacturers were already supplying these codes prior to the implementation of the GST regime. Importers and exporters provided these codes in import/export paperwork. Invoices from manufacturers and importers typically include HSN numbers, which are commonly used by traders. Many GST taxpayers are already providing HS codes/SACs with 6/8-digit numbers on invoices, e-way bills, and GSTR 1 reports willingly as a result of this change.

Vakilsearch engages with trustworthy professionals to meet all of your tax obligations. contact us now!

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