GST HSN Code

The World Customs Organization (WCO) invented and established the Harmonized System of Nomenclature, which is an HSN full form to classify products from all over the world in a standardized and rational manner. GST HSN code is a six-digit universal code that classifies over 5,000 goods and is used all over the world.

This collection of rules is used in taxes to determine the tax rate that applies to a commodity in a given region. It’s also used to figure out how much commodity is exported or imported into a region. It is a critical function for analyzing the global flow of commodities.

It is made up of various parts that are further divided into chapters, which are further divided into headings and subheadings. The six-digit code is the resultant number.

HSN Worldwide

HSN code full form – Harmonized System of Nomenclature. It is utilized by more than 200 countries and economies for reasons like:

  • Uniform classification
  • The base for their customs tariffs
  • Collection of international trade statistics

More than 98% of the merchandise in international trade is classified in terms of the HSN.

GST HSN Code in India

India is preparing to implement its Goods and Services Tax, or GST, which would apply to all goods and services. Many indirect taxes would be absorbed, reducing the pressure on the final user. India has been using the HSN scheme in the Central Excise and Customs regime since 1986.

It’s a lot more complex grouping, with two more digits added to the six-digit structure. It’s a lot more complex grouping, with two more digits added to the six-digit structure. Indian manufacturers would be expected to follow a three-tiered HSN system under GST.

GST HSN Code

  • HSN is not needed for those with a turnover of less than INR 1.5 crores.
  • The 2 digit HSN codes are for businesses with a revenue of more than INR 1.5 crores but less than INR 5 crores.
  • All with a turnover of more than INR 5 crores must use the four-digit HSN codes.
  • Importers and exporters must adhere to the HSN codes, which are eight digits long.

HSN Code List Digits

The HSN is divided into 21 parts, each of which has 99 chapters, 1,244 headings, and 5,224 sub-headings. The section or chapter to which the product belongs is determined by its industrial and technical sophistication. As a result, all-natural materials, such as vegetables and animal products, are found in the earlier sections, whereas commercial equipment is found in the later stages.

Categories

The parts are divided into broad categories. Chapters, on the other hand, are classified even more precisely. Section 11 includes all types of textiles and clothing articles, while Chapter 62, which is part of Section 11, is specifically for men’s and women’s accessories.

Chapters have been subdivided into headings and subheadings as you progress down the chain. Under the Chapters, the headings concentrate on various categories of items. Continuing with the previous illustration, heading 13 of Chapter 62 covers all forms of handkerchiefs, while heading 14 covers various scarves and shawls. There is a commodity associated with each of these headings.

Example

Handkerchiefs made of other textile fabrics, for example, fall under heading 13 of Chapter 62. The product’s HSN code is 62.13.90, with 90 being the product code for handkerchiefs made of other textiles. The HSN code becomes 62.13.90.10 as the handkerchiefs are made from a human-made fiber. Similarly, 62.13.90.90 is used for silk handkerchiefs and silk waste.

When a substance is classified using the aforementioned structure, the General Interpretation Rules must be followed. When classifying a commodity, the trade jargon of the product must be tested first, not the technical exploitation. There is no need to dig down deeper in the strata below if the commodity is graded on the first rank.

HSN- Summary of Outward Supplies

Chapter

Commodities

Section I. Animals and Animal Products

Chapter 1

Animals

Chapter 2

Meat and edible offal

Chapter 3

Fish, molluscs, and other aquatic invertebrates

Chapter 4

Dairy produce, birds' eggs, honey and other edible products of animal origin that are not specified anywhere else

Chapter 5

Products of animal origin that are not specified elsewhere

Section II. Vegetables and Vegetable Products

Chapter 6

Live trees/plants, bulbs, roots, cut flowers and ornamental foliage

Chapter 7

Edible vegetables/certain roots/tubers

Chapter 8

Edible fruit and nuts, the peel of citrus fruits or melons

Chapter 9

Tea, coffee, spices and mates

Chapter 10

Cereals

Chapter 11

Milling products, wheat gluten, malt, starches, inulin

Chapter 12

Oil seeds and oleaginous fruits, grains, straw and fodder, seeds and fruit, and industrial or medicinal plants

Chapter 13

Lac, gum, resin, extracts, etc

Chapter 14

Vegetable plaiting materials/vegetable products that are not specified elsewhere

Section III. Animal/Vegetable Oils, their respective Cleavage Products, Waxes, Prepared Edible Fats

Chapter 15

Animal/vegetable oils, their cleavage products, etc

Section IV. Prepared Food, Beverages, Spirits, Tobacco and Tobacco Substitutes

Chapter 16

Preparation of meat, fish ,molluscs, etc

Chapter 17

Sugar/Sugar confectionery

Chapter 18x

Cocoa/Cocoa preparations

Chapter 19

Preparations of cereals, flour, milk, pastry products

Chapter 20

Preparation of vegetables, fruits, nuts, plant parts

Chapter 21

Miscellaneous edible preparations

Chapter 22

Beverages, vinegar, spirits etc.

Chapter 23

Residue and food waste, prepared animal fodder

Chapter 24

Tobacco and tobacco substitutes that are made

Section V. Minerals

Chapter 25

Salt, stones, sulphur, plastering material, cement, etc

Chapter 26

Ores, ash and slag

Chapter 27

Mineral fuel, mineral oils, bituminous substances etc

Section VI. Chemical Products of Allied Industries

Chapter 28

Inorganic chemicals, organic/inorganic compounds of precious metals, isotopes, rare-earth metals, radioactive elements

Chapter 29

Organic chemicals

Chapter 30

Pharmaceutical Items

Chapter 31

Fertilisers

Chapter 32

Tanning or dyeing extracts, tannins and their derivatives, dyes, pigments, varnishes, paints, inks, etc.

Chapter 33

Essential oils/resinoids, perfumery, toilet/cosmetic preparations, 

Chapter 34

Soap, washing preparations, organic surface-active agents, lubricating preparations, dental preparations and dental waxes with a basis of plaster, prepared waxes, artificial waxes, candles, modelling pastes, etc

Chapter 35

Albuminoidal substances, glues, enzymes, etc

Chapter 36

Explosives, pyrotechnic products, pyrophoric alloys, some specific combustible preparations

Chapter 37

Photographic/cinematographic goods

Chapter 38

Other miscellaneous chemical products

Section VII. Plastics, Rubber, and Articles Thereof

Chapter 39

Plastics/plastic articles

Chapter 40

Rubber/rubber articles

Section VIII. Raw Hides/Skins/Furskins and Articles Thereof, Leather, Related Goods

Chapter 41

Raw hides/skins (other than furskins), leather

Chapter 42

Articles manufactured of leather, travel goods, handbags, harnesses, articles made of animal gut (except silkworm gut)

Chapter 43

Furskins/artificial fur and similar articles

Section IX. Wood/Wooden Articles, Wood Charcoal, Cork/Articles of Cork, Basket Ware, Manufacturers of Straw, Other Plaiting Material etc

Chapter 44

Wood/wood charcoal/wooden articles

Chapter 45

Cork and articles of cork

Chapter 46

Manufactures of straw, esparto/other plaiting materials, basketware ware, etc

Section X. Pulp of Wood/Other Fibrous Cellulosic Material, Recovered Paper/Paperboard, and Articles Thereof

Chapter 47

Pulp of wood/other fibrous cellulosic material recovered paper or paperboard (scrap or waste)

Chapter 48

Paper/paperboard, articles made of paper pulp, etc

Chapter 49

Printed books, newspapers, and products of the printing industry, manuscripts, typescripts, etc

Section XI. Textile and Textile Articles

Chapter 50

Silk

Chapter 51

Wool, fine/coarse animal hair, horse hair yarn, etc

Chapter 52

Cotton

Chapter 53

Paper yarn, vegetable textile fibres, woven fabrics made of paper yarn

Chapter 54

Man-made filaments

Chapter 55

Man-made staple fibres

Chapter 56

Wadding, felt and nonwovens, cordage,  twine, special yarns, ropes, etc

Chapter 57

Carpets and textile floor coverings

Chapter 58

Special woven fabrics, embroidery, tufted textile fabrics, trimmings, lace tapestries,

Chapter 59

Covered, laminated textile fabrics, coated, textile articles made for industrial use

Chapter 60

Knitted/crocheted fabrics

Chapter 61

Articles of apparel and clothing accessories that are knitted or crocheted

Chapter 62

Articles of apparel/clothing accessories that are not crocheted/knitted

Chapter 63

Other made-up textile articles, sets, worn clothing and textile articles, and rags

Section XII. Footwear, Umbrellas, Walking Sticks, Headgear, Seat Sticks, Whips, Artificial Flowers, Riding Crops, Articles of Human Hair, Prepared Feathers and Similar Articles

Chapter 64

Footwear, gaiters, and the parts of such articles

Chapter 65

Headgear and parts thereof

Chapter 66

Umbrellas and sun umbrellas, walking sticks, riding crops and parts thereof, whips, etc

Chapter 67

Prepared feathers and down and articles made thereof, articles made of human hair, artificial flowers

Section XIII. Articles Made of Stone, Plaster, Asbestos, Cement, Mica, Similar Materials, Glass/Glassware, Ceramic Products

Chapter 68

Articles made of stone, plaster, cement, asbestos, mica or similar materials

Chapter 69

Ceramic products

Chapter 70

Glass and glassware

Section XIV. Natural or Cultured Pearls, Precious Metals Clad With Precious Metal, Coins, Imitation Jewellery, Precious or Semi-Precious Stones

Chapter 71

Natural or cultured pearls, metals that are clad with precious metal and articles thereof, precious or semi-precious stones, imitation jewellery, coins

Section XV. Base Metal and Articles Made of Base Metal

Chapter 72

Iron and steel

Chapter 73

Articles made of iron/steel

Chapter 74

Copper and similar articles thereof

Chapter 75

Nickel and similar articles thereof

Chapter 76

Aluminium and similar articles thereof

Chapter 77

It is Reserved for possible future use

Chapter 78

Lead and articles thereof

Chapter 79

Zinc and articles thereof

Chapter 80

Tin and articles thereof

Chapter 81

Other base metals, cermets, etc

Chapter 82

Tools, cutlery of base metal, spoons and forks,  implements, and parts thereof

Chapter 83

Miscellaneous articles made of base metal

Section XVI. Machinery and Mechanical Appliances, Sound Reproducers and Recorders, Electrical Equipment and Parts Thereof, Television Image and Sound Reproducers and Recorders

Chapter 84

Nuclear reactors, boilers, machinery and mechanical appliances, etc

Chapter 85

Electrical machinery and equipment, sound reproducers and recorders, sound reproducers and television image and recorders, etc

Section XVII. Aircraft, Vessels, Vehicles, Associated Transport Equipment

Chapter 86

Tramway/railway locomotives, tramway or railway track fixtures and fittings, rolling stock, mechanical (including electro-mechanical) traffic signalling equipment of all kinds

Chapter 87

Vehicles other than tramway/railway rolling stock, etc

Chapter 88

Aircraft, Spacecraft, its parts etc

Chapter 89

Floating structures, ships, boats

Section XVIII. Optical, Photographic, Cinematographic, Measuring, Precision, Medical/Surgical Instruments/Apparatus, Musical Instruments, Clocks/Watches, etc

Chapter 90

Optical, cinematographic, photographic, checking, precision, medical/surgical instruments/apparatus, etc

Chapter 91

Clocks and watches, its part etc

Chapter 92

Musical instruments, its parts etc

Section XIX. Arms and Ammunition, its accessories

Chapter 93

Arms and ammunition, etc

Section XX. Miscellaneous Manufactured Articles

Chapter 94

Furniture, mattresses, bedding, cushions and similar stuffed furnishing, lamps and fittings, which are not anywhere else included, illuminated signs and name-plates, etc

Chapter 95

Toys/games/sports requisites, etc

Chapter 96

Miscellaneous manufactured articles

Section XXI. Works of Art, Collectors’ Pieces/Antiques

Chapter 97

Works of art, antiques, collectors' pieces etc

Chapter 98

Project imports, laboratory chemicals, personal imports by air or post, ship stores, passenger's baggage

Chapter 99

Services

SAC Code

SAC Code is a classification system for the services that are developed by the Service Tax Department of the country. Using the SAC code, the GST rates for services are fixed in five slabs, and they are: 0%, 5%, 12%, 18% and 28%. If the services are not exempted from GST or if the GST rates are not given, then the default GST rate for services of 18% would be applicable.

Where are the Codes Used?

For acknowledgement, estimation, and taxation, various utilities are often graded universally. Services Accounting Codes, or SACs, are codes for services. Animal products, mineral products, plastic articles, clothing, weapons and ammunition, and machinery all require an HSN code.

Importance of HSN under GST

HSN codes are used to make GST more standardized and globally accepted. HSN codes would eliminate the need to post a full product summary. Since GST returns are automatic, this will save time and make filing simpler. If a distributor or service provider’s turnover is in the above slabs, he or she must have an HSN/SAC-by-HSN/SAC report of transactions in his GSTR-1.

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