What is HSN code? Understanding its Significance

By -

HSN stands for Harmonised System of Nomenclature. HSN code is used worldwide to identify different categories and types of products. Usually HSN code is 6 digits long but in India there are additional 2 digits are used to add deeper details. This code was introduced in 1988 by World Custom Organisations for classification of goods both Domestic and International.

What is HSN code? Understanding its Significance

How to find your HSN code?

You can easily find your HSN code At GST portal just follow these simple steps:

  • Visit: https://www.gst.gov.in/ 
  • Go to – Services – User Services – Search HSN Code 
  • You will need to enter Chapter, Name or code, in case if you don’t have these details you can download the HSN excel sheet and search there.

HSN Code in India

In India, HSN codes are used to regulate trade and make it easy to check and compute the GST rate that is payable on every item. Using the HSN code, anyone may obtain the GST rate for their products, making trading faster and easier. It is also required to utilise the correct HSN numbers when completing GST returns in order for payments to be confirmed.

Who needs HSN Code?

Businesses with turnover less than 1.5 crores do not need to use HSN code. All the business with turnover more than 1.5 crores needs to adopt HSN codes for their commodities.

Understanding the code and how does it work

HSN code contains 21 sections which are divided into 99 chapters which contains 1244 sub sections. HSN codes apply to custom and GST. HS codes are prescribed in Customs Tariff as heading (4 digits HS), sub-heading (6 digits HS), and tariff items (8 digits). These documents can be found on the Central Board of Indirect Tax and Customs (CBIC) website.

This is how the Indian HSN code breaks up:      

  • Chapter – 2 digits
  • Heading – 2 digits
  • Sub-Heading – 2 digits

  • India Sub Classification – 2 digits

Importance of HSN Code

HSN is widely used all over the world. Distinct goods have different HSN codes. HSN codes eliminate the need to upload product information, making GST returns quicker to file. It is very vital that you are well aware of this code to avoid confusion and keep your shipping experience smooth.

Comments

Post a Comment

Popular posts from this blog

How To Ship Important Documents Through Courier?

By -
Image
Ex of Valuable documents By important documents we mean, original documents which cannot be replaced. These documents may be crucial and sensitive in nature which may or may not be reconstructed. Documents like KYC (individual or a company) including, Driving License, Aadhar Card, Passport, Pan Card, Voter Id etc, Company Registration Certificates, Business Agreement Papers, MOUs, NDAs etc, Negotiable Banking Documents like Cheques, Debit or Credit Cards, Bank Draft, Bill of exchange etc.Student Documents like Original Marks Sheets, Graduation or PG Certificates, Convocation Certificates etc. Sending important documents through courier not only needs proper packaging but needs greatest care in choosing the courier partner as well else there are high possibilities of misusing these documents by others. Sometimes when you move to bigger cities for your own reasons, it becomes necessary to send or receive some of the important documents from other cities. Since few of the
Read more

How to deal with ODA/OPA locations?

By -
Image
The logistics industry has seen tremendous growth for over a decade. It could be the adoption of technology to make the transportation better or the quality service which has increased the productivity of the supply chain. The advancement of the logistics industry has turned into a boon for the e-commerce businesses which wholly depend on logistic companies to deliver their products and services to the customers. Even though the logistics industry has heeded a drastic improvement in its services, yet it has a lot of loopholes in the system. The dominant ones being the Out Of Pickup and Delivery Area. So let’s understand more on this in detail: Remote Area for Pick up - Also known as Out of pickup area. Here, the courier service provider doesn’t render the convenience of door pick up of the parcel to its customer. Therefore the shipper has to drop off the parcel to the nearest courier office in order to further connect the parcel and get it delivered. Remote Are
Read more

How to Create CSB-V Shipments?

By -
Image
Once your business starts growing and you decide to lock your eye into the international market there are number of provisions that are needed to be taken care for shipping successfully. There are many laws that govern the export of goods from India, that you might be unaware of during this phase. Knowing these laws and criteria is essential for anyone starting an international e-Commerce business . International trade has offered Indian SME's with an incredible opportunity to explore & tap the international market and take their business to a wider range of customers. However, when it comes to foreign trade, the primary issue, most of the sellers face is the Customs Clearance and other paperwork that's required for shipping. Customs Clearance One of the biggest concerns that shipper face is of Custom clearance. Clearing the product from customs is a very big hindrance if you do not have enough expertise and knowledge in International shipping . If you want to take advant
Read more