Harmonised System of Nomenclature (HSN) is a unique code that was introduced by the World Customs Organisation to systematically classify goods and services across the world. Internationally the HSN Code is a globally recognized six-digit code, but countries may add additional digits depending on the nation’s laws.
The HSN Code classifies over 5,000 products exported and imported by over 200 countries. The coding is defined by a well-structured set of rules that ensures uniform classification.
There are three main reasons behind nations employing an HSN Code. These include:
Having a base for custom tariffs
Collecting international trade statistics
Classifying goods in a uniform way
India joined the World Customs Organisation in 1971 and used the six-digit HSN Code to classify goods and services for the Central Excise and Customs Department. However, once the Central Government launched the Goods and Service Tax in 2017, the HSN Code is an eight-digit code that is used when we have to import and export goods.
However, two-digit and four-digit HSN Codes are employed while filing GST when there is no import and export involved. This is done in the following cases:
If an individual or a company makes an annual turnover of Rs 1.5 crore or less, then HSN Codes need not be provided
In case the individual or a company makes an annual turnover between Rs 1.5 crore and Rs 5 crore, then a two-digit HSN Code is provided
In case the individual or company makes and annual turnover of Rs 5 crore or over, then a four-digit HSN Code is provided
In case the individual or company imports or exports goods, then an eight-digit HSN Code is provided
The HSN Codes must be declared each time the individual or company files its GST. It is important to know that the previous year’s turnover will be considered as a basis to find out the number of digits that are required to be submitted. However, this is not in the case of import or export of goods and services.
The HSN Code in India comprises 21 sections, 99 chapters, 1,244 headings, and 5,224 subheadings
Sections are divided into chapters which are further divided into headings and subheadings
Sections and chapters describe a broad category of goods, while headings and subheadings describe a product in detail.
The eight-digit HSN Code is for a deep classification of goods and services when it is being imported or exported. Other countries may use more than six digits in their HSN Classification to understand their goods and services better. For example, the United States employs a 10-digit HSN Code.
With Vakilsearch’s HSN CODE FINDER you can find the code of your product easily. All you need to do is just enter the name of the product and click “Search”. The HSN code along with the Chapter, GST rate, Description of the product, and the related codes will be displayed.
Sections HSN Code List for
Section 1: Live Animals, Animal Products
Section 2: Vegetable Products
Section 3: Animal or Vegetable Fats and Oils and their cleavage products, prepared edible fats, Animal or Vegetable waxes
Section 4: Prepared Foodstuffs, Beverages, Spirits and Vinegar, Tobacco and Manufactured Tobacco Substitutes
Section 5: Mineral Products
Section 6: Product of the chemicals or allied Industries
Section 7: Plastics and articles thereof, Rubber and articles thereof
Section 8: Raw hides and skins, Leather, Furskins and articles thereof, saddlery and harness, travel goods, handbags and similar containers, articles of animal gut ( other than silk-worm gut )
Section 9: Wood and articles of wood, Wood charcoal, Cork and articles of cork, Manufacturers of straw, of Esparto or of other Plaiting Materials, Basketwork and Wickerwork
Section 10: Pulp of wood or of other Fibrous Cellulosic Material, Recovered ( Waste and scrap ) paper or paperboard, paper and paperboard and articles thereof
Section 11: Textile and textile articles
Section 12: Footwear, Headgear, Umbrellas, Sun Umbrellas, Walking-sticks, seat-sticks, whips, riding-crops and parts thereof, Prepared feathers and articles made therewith, Artificial flowers, Articles of human hair
Section 13: Articles of stone, plaster, cement, asbestos, mica, or similar materials, ceramic products, glass and glassware
Section 14: Natural or cultured pearls, Precious or semi-precious stones, precious metals, Metal clad with precious metal, and articles thereof, Imitation Jewellery, Coins
Section 15: Base Metals and articles of Base Metal
Section 16: Machinery and mechanical appliances, electrical equipment, parts thereof, sound recorders and reproducers, television image and souch recorders and reproducers, and Parts and Accessories of such article
Section 17: Vehicles, Aircraft, Vessels and Associated Transport Equipment
Section 18: Optical, Photographic, Cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus, clocks and watches, musical instruments, parts and accessories thereof
Section 19: Arms and ammunition, parts and accessories thereof
Section 20: Miscellaneous Manufactured Articles
Section 21: Works of art, Collectors' Pieces and antiques
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