procedure to check the HSN code on the GST portal,advantages of HSN Code, HSN Code list

How to check the HSN code on the GST portal

Introduction

The classification of goods that are subject to GST is performed using the Harmonized System of Nomenclature (HSN) code. There are numerous things and services available. Not all of them are subject to the same rate of taxation. They are consequently divided into smaller groupings, each with a different GST rate. This facilitates worldwide trade and provides a standard classification of goods. This article focuses on the procedure to check the HSN code on the GST portal, the advantages of HSN Code and the GST HSN Code list.

What is the HSN code?  

The term “HSN code” stands for Harmonized System of Nomenclature code. As a multipurpose international product nomenclature, the World Customs Organization (WCO) initially proposed a unique code for all goods intending to apply the classification of goods all over the world uniformly. India began using HSN codes in 1986 to categorize goods and items for Customs and Central Excise tariff duty. GST invoices use the same HSN tariff numbers for Customs.

What is the HSN code in GST?  

The HSN starts with a 6-digit code. The Customs and Central Excise authorities inserted 2 additional numbers for clarity purposes. The defined HSN code has a total of 8 digits. The GST chapter number is shown by the first two digits. The chapter headings are indicated by the next two digits. The following two digits denote a subheading, and the last two digits denote a further subheading. The classification of the goods in the HSN code is done under 21 sections, 99 chapters, 1244 headings, and 5224 subheadings.

Advantages of HSN Code  

HSN Code is beneficial for every legal entity that is engaged in trading activity. Below are the advantages of HSN Code:

  • It will help in maintaining uniformity in the taxation system around the globe.
  • It will be easy at the time of filing ITR (Income Tax Return), invoices, and other filings.

HSN code will help in classifying goods around the globe by Central Excise Department and Consumer.

How to check the HSN code on the GST portal

  • Log in to the appropriate GST portal with login credentials.
  • Next select “Services,” “User Services,” and “Search HSN Code” from the menu that opens.
  • After selecting the HSN checkbox, select the desired tax type from the Tax-Type drop-down menu.
  • Search HSN Chapters by Code or Name
  • Also, under “Search HSN Chapter by Code or Name,” enter the HSN name or code of the chapter whose rates you need to find.
  • Moreover, under the “Search HSN Code” box, enter the HSN codes for the goods whose tax rates you wish to find.
  • From the calendar, select the dates that apply to the “Effective Period” category.
  • Once all the information has been entered, select the “Search” option.
  • Choose “Search” from the menu. Then, choose “Search” from the drop-down option. The user will then have access to the details after the previously mentioned procedure is finished.
  • The user will have access to the information once the procedure that occurred before it is complete.

Information on “How Does GST HSN Code List works?”

The GST HSN Code list is mainly used by traders and dealers, there are different types of HSN codes such as 2-digit codes, 4-digit codes, and 8-digit HSN codes. Dealers/ traders can select any of the given codes based on their business activity.

 

Business Turnover Limit

Requirement for HSN Code

Turnover is not more than INR 1.5CR

No need for HSN Code

If in between INR 1.5CR to INR 5CR

Then there is a requirement for 2 digit HSN Code for business activity

Turnover is more than 5CR

There is a need to opt for a 4-digit HSN Code for trading/business activity

In the case of international trading and import-export business

Need for 8-digit HSN Code for business activity

Conclusion

The World Customs Organization (WCO) created the HSN code, which is regarded as the global standard for naming goods. By using HSN codes, the Goods and Services Tax (GST) is meant to be more organized and more understandable. A complete product description is not necessary using HSN codes. GST returns will be [“computerized”], which will speed up and simplify the filing procedure.

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