GSTLegal Advice

How to Check the HSN Code in GST Portal

The Harmonised System of Nomenclature (HSN) code is used to classify products subject to GST. There are several items and services available. A single tax rate does not apply to all of them. As a result, they are divided into smaller groups, each with its own GST rate. The Service Accounting Code is used to categorise services (SAC).

How to Check HSN Code in GST Portal : On the GST Portal, a person can look up the tax rate associated with a given HSN/SAC code.There is no requirement for the individual to be a registered user of the GST Portal.

GST Portal – How to Find HSN/Sac Tax Rates

Navigate to the Gst Portal’s Home Page

  1. Navigate to the GST Portal’s homepage and sign in with your valid credentials. Select Services > User Services > Search HSN/SAC Code from the menu
  2. When it comes to HSN Codes, To begin, select the checkbox contain HSN
  3. Choose a tax type. Second, under the Tax-Type drop-down list, choose the tax type you’re looking for
  4. HSN Chapter Search by Name or Code. In addition, in the box labelled ‘Search HSN Chapter by Name or Code,’ type in the HSN code or the chapter’s name whose rates you are interested in
  5. Lookup for the HSN Code Additionally, in the section labelled ‘Search HSN Code,’ enter the HSN code for the items whose tax rates you wish to find up
  6. Choose the right dates- Choose the appropriate dates from the calendar in the ‘Effective Period’ category
  7. Select the ‘Search’ option. Finally, once all of the details have been entered, select ‘Search’
  8. Choose a State-If you choose SGST from the Tax Type option, you must additionally choose the State for which you want to examine the tax rate
  9. When it comes to SAC Codes. To begin, select the SAC checkbox
  10. Choose a tax type. Second, under the Tax-Type drop-down list, choose the tax type you’re looking for
  11. Enter your Service Classification Code here (SAC).In addition, in the field labelled ‘Service by Name or Code,’ type in the Service Classification Code (SAC) for the prices you are interested in
  12. Make sure you pick the proper dates. Choose the necessary dates from the calendar and enter them into the ‘Effective Period’ section of the form
  13. Click the ‘Search’ button. Finally, select ‘Search’ from the drop-down menu. Following completion of the procedure that came before, the user will then be given access to the specifics.

Once the procedure that came before it has been finished, the details will be made available to the user.

Specifically, What Is HSN Code?

The abbreviation ‘HSN’ refers to the ‘Harmonised System of Nomenclature,’ which can also be written out fully.. This approach has been utilised all around the world as a means of systematically classifying a variety of different items. The HSN code is a 6-digit universal number that is used to classify over 5000 commodities and is recognised worldwide. It was founded in 1988 and got its start in business thanks to the World Customs Organisation (WCO), which was responsible for its foundation.

How Does the HSN Code Work?

It consists of around 5,000 commodity categories, each with its own six-digit code and organised in a legal and logical framework. It is backed by well-defined rules in order to achieve uniform classification.

What Is the Meaning of HSN?

The major objective of HSN is to organise and classify products from different parts of the world in a way that is methodical and consistent. This results in a more consistent categorisation of items and improves international trade.

HSN International

Over two hundred countries and economies make use of the HSN system for a variety of purposes, including the following:

  • Classification that is consistent
  • Customs tariffs are based on this
  • International trade statistics collection

Over 98 percent of international trade items are categorised using the HSN.

For each commodity, most countries accept the Harmonised System of Nomenclature number.The HSN number is the same across the board for virtually all different types of goods. However, the HSN numbers used in various nations vary little depending on the type of the commodities categorised.

There Is a Lot of Interest in HSN in India

Since 1971, India has been an engaged contributor to the work of the World Customs Organisation (WCO).In the past, the HSN numbers used to classify goods for purposes of Customs and Central Excise were composed of six digits. In the end, Customs and Excise decided to add two more digits to the numbers in order to make them more accurate, which resulted in an eight-digit categorisation system.

Use our GST calculator to determine the exact amount of GST to be paid before registering for GST.

Acquiring Knowledge of the HSN Code

The HSN organisational structure includes 21 divisions, 99 chapters, 1,244 headings, and 5,224 subheadings in total

  • Each Section is further subdivided into Chapters. Headings are used to split each Chapter. Each Heading is further subdivided into its own Subheadings.
  • Section and Chapter names represent broad groups of items, whereas headers and subheadings identify specific products

As an example:

Textile topics handkerchiefs 62.13.90

  • The first two digits, 62, indicate the chapter number for articles of clothing and clothing accessories that are not knitted or crocheted. This includes a wide variety of items.
  • The following two digits (13) represent the handkerchief heading number
  • The last two numbers, 90, denote the product code for a wide variety of handkerchiefs made of textile materials. These handkerchiefs can be used for a variety of purposes.

India has two more numbers for a more detailed categorisation.

The HSN code for handkerchiefs made of synthetic fibre is 62.13.90.10.

HSN Code Structure in India

GST Services Accounting Code (SAC)

Services, like things, are systematically categorised for identification, measurement, and taxes. Services Accounting Codes, or SACs, are codes for services.

  • For instance, 998213 provides legal documentation and certification services for intellectual property rights such as patents, copyrights, and other forms of intellectual property
  • For all services, the first two digits, 99, are the same
  • The following two digits (82) reflect the primary type of service, in this example, legal services
  • The following two digits define the specific nature of the service, such as legal paperwork for patents, etc., and the number 13 indicates this information.

The HSN Code for the Declaration of Goods and Services

On April 1, 2021, the following HSN codes will be announced

(See CGST notification number 78/2020, issued October 15, 2020.)

Transaction Charges Type of Invoice document No. of digits of HSN to be declared
Up to 5 crore Mandatory for B2B tax invoices 4
Optional for B2C tax invoices 4
More than 5 crore Mandatory for all invoices 4

*Annual aggregate turnover for the prior fiscal year. For example, if you are reporting invoices for the fiscal year 2021-22, your turnover must be from the previous fiscal year, which is FY 2020-21.

  • These HSN codes must be mentioned in every GST tax invoice produced by the taxpayer.In the context of the Goods and Services Tax (GST), it is necessary to provide all eight digits of the HSN code.

In the Context of the GST, Why Is the HSN So Important?

The Goods and Services Tax (GST) is intended to be more organised and broadly understood thanks to the utilisation of HSN codes. HSN codes will eliminate the need to supply a full product description. Because of the computerisation of GST returns, this will save time and make the filing process easier.

If a dealer or service provider’s turnover falls within the aforesaid slabs, he must supply an HSN/SAC-by-SAC summary of sales in his GSTR-1. Vakilsearch establishes connections between you and reputable professionals and collaborates with them to fulfil all of your tax requirements, including GST, HSN, CGST, and others. 

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