WHAT IS THE HSN CODE?
The Harmonized Commodity Description and Coding System for the most refer to “Harmonized System of Nomenclature”. It is a multipurpose worldwide item terminology created by the World Customs Organization (WCO). It initially became effective in the year 1988. HSN code contains six digit uniform code that groups 5,000+ items and which is acknowledged around the world.
This kind of characterization is utilized for tax collection purposes in recognizing the rate of duty appropriate to an item in a country. This code is additionally used to decide the quantum of thing exchanged or imported all over a country.
BENEFITS OF HSN CODE
HSN(Harmonized System of Nomenclature has thought of different advantages referenced below:
- It helps in characterizing goods everywhere throughout the country for Customs and Central Excise
- It gives a uniform tax assessment framework everywhere throughout the world
- More simplicity of working together universally
- It can likewise be utilized in documenting returns, solicitations, and others
WHY IS HSN CODE IMPORTANT
Indian Taxation System has segregated more than 1211 goods for under 6 general classes or assessment sections. These are 0% or No Tax, 5%, 12%, 18% and 28%. The utilization of GST rates all around will end up orderly, diminishing the expenses of worldwide exchange.
The recognition for goods becomes less complicated, and resultantly fewer outcomes of error while billing and reconciliation. While recording GST returns on the web, HSN code is required for the supply of products so that the correct tax amount is charged against the goods.
WHAT IS SAC UNDER GST
SAC codes (Services Accounting Code) are codes issued by CBEC to consistently group every administration under GST. Each administration has a remarkable SAC. These SAC codes can be utilized in solicitations made by you for the administrations you conveyed.
In the accompanying SAC code show, you will discover all the SAC codes and appropriate GST rates on them. This will enable you to know the privilege GST rate you ought to charge in your solicitations. For your simplicity, we have likewise incorporated a section named “Additionally Check” where you can check whether certain distinctive SAC should be utilized for your administrations. This SAC code rundown and GST on administrations list has been refreshed on tenth November 2017 after 23rd GST Council meeting.
Format of SAC
The SAC code is a unique 6 digit number that contains two numbers each for Chapter, Heading and Subheading.
Below we have given an example for the same:
SAC code for Legal documentation and certification services concerning patents, copyrights and other intellectual property rights is 998213
- The first two digits are the same for all services i.e. 99
- The next two digits (82) stands for nature of service, in this case, legal services – Heading
- The last two digits (13) stands for the detailed nature of service, i.e., legal documentation for patents – Subheading.
GST HSN Finder – Steps to Search HSN/SAC Tax Rates
Follow the steps outlined below to find the HSN codes for GST:
- Visit the GST portal home page – services.gst.gov.in/services/login and enter the login details such as Username and Password.
- Click on Services – User Services – Search HSN/SAC code.
- Click on the HSN checkbox.
- Select the tax-type you are searching for in the Tax-Type drop-down list.
- Now, enter the HSN code or name of the chapter whose rates you are looking for under the “Search HSN Chapter by Name or Code.”
- Additionally, enter the HSN code of the goods whose tax rates you are looking for under the “Search HSN Code” category.
- Select the appropriate dates in the “Effective Period” category from the calendar.
- Once the details are filled in, click on the “Search” option.
- In case you select SGST from the Tax Type list, you also need to select the State for which you want to check the tax rate.
In the case of SAC codes, follow the steps mentioned below:
- Click on the SAC checkbox.
- Select the tax-type you are searching for in the Tax-Type drop-down list.
- Furthermore, enter the Service Classification Code (SAC) whose rates you are looking for under the “Service by Name or Code.”
- Additionally, select the appropriate dates in the “Effective Period” category from the calendar.
- Lastly, click on the “Search” option and the details will be displayed on the screen.
