This article is another post by The Buzz Stand team in basics of GST series. This post would help you know the new HSN code for GST registration process.
Harmonized System Nomenclature or HSN is a code number which is internationally adopted for commodity description and coding. HSN is developed by World Customs Organization or WCO. More than 200 countries in the world use HSN for the purpose of custom tariffs. As of now, more than 98% of the merchandise which are internationally traded are classified under the HSN code. As HSN code acts as a universal classification for goods, Indian Government has also decided to use the HSN code for the purpose of classification of goods. Hence, it would fall under the ambit of GST tax and it would be levied accordingly.
HSN Code for GST
With the new taxation act coming into place in India, every transaction would be falling under GST. The category for that purpose under which transaction would fall is would be determined by HSN Code. Five slabs under which would be applicable are 29%, 18%, 12%, 5% and Nil.
HSN system has about 5000 product groups and each of the group has been identified with a six digit code which will be arranged in a logical structure for achieving uniform classification.
HSN Code – 2017 Edition
International trade transactions currently use the 2017 version of codes. Before implementation of 2017 Edition of HSN Code- 2012 Edition was applicable in international market. HSN codes are divided into chapters, sections which contain a six digit code for the Harmonized system. The following table gives you the insight about the same.
You can download the HSN Code for GST which would be helpful while registration and filing. You can read more about basics of GST. In case of more information or filing help you can fill the contact form.