Summary: HSN code list and GST rates are divided into multiple chapters that cater to different types of services. Keep on reading to find all the HSN codes along with their applicable GST rates below.
The HSN code list and GST rates go hand to hand with the Indian taxation system. After the implementation of Goods and Service Tax (GST), it has become necessary for the taxpayers to classify their goods and services under Harmonized System of Nomenclature (HSN) codes.
The HSN code list categorizes goods for taxation purposes, while GST rates determine applicable tax percentage for different products and services. In this article, we will talk about HSN codes and GST rates and provide you with insights that can help with your tax operations and compliance.
Table of Contents
What is HSN Code?
HSN code or Harmonized System of Nomenclature was introduced by the WCO (World Customs Organization) to classify goods or services a business offers. The HSN code consists of a six-digit number that helps businesses categorize over 5,000 products for a smoother communication between trading partners.
Currently, HSN is used by 200+ countries as it helps business with:
- Uniform product classification
- Customs tariffs
- International trade statistics
Furthermore, over 98% of the organizations in international trade are categorized in terms of HSN.
How Does HSN Code Work?
The HSN code is globally accepted for classifying goods in international trade. It’s a six-digit code and each digit in the HSN code represents a specific category, making it easier for customs officials and businesses to identify the nature of the product.
The code is arranged in a legal and logical structure and it is supported by a defined rule for an uniform classification. You can look for HSN code search online to find the code of any product.
The Harmonized System of Nomenclature (HSN) structure contains 21 sections, 99 Chapters, 1,244 headings, and around 5,224 subheadings.
The Sections and chapters cover general categories, while headings and subheadings provide detailed descriptions of products. It’s like a big classification system that helps organize and identify different types of goods in a detailed way. Let’s understand it by an example.
A Scarf or handkerchief made of textile matters with the HSN code 62.13.90
First primary two digits (62) states the chapter of the product- apparel and clothing accessories
The next two digits (13) represent the heading number for the scarf.
Finally, the last two digits (90) is the product code for scarfs that are made of textile materials.
GST and HSN code list
The GST rate applicable to a product is directly linked to its HSN code. Goods or services with different HSN codes may have different GST rates. This ensures uniformity in tax application across different goods.
Businesses must mention the correct HSN code list for each good or service on their GST invoices. It helps them with:
- Accurate tax calculation
- Tracking of goods and services
- Preventing tax evasion
Here’s a breakdown on how business should declare GST HSN code:
|No. of digits of HSN to be declared
|Up to 1.5 crore
|1.5 – 5 crore
|More than 5 crores
If the transaction is 5 or more than 5 crores, businesses have to attach invoice documents for the declaration of HSN code for goods and services.
|Invoice document needed
|No. of digits of HSN to be declared
|Up to 5 crores
|Compulsory for B2B
|Optional for B2C
|More than 5 crore
|Mandatory for all invoices
How to Add HSN Code List in the GST Portal?
The Indian taxation system offers you to easily add HSN code into the GST portal. Follow the steps below:
- Visit the GST portal website and login (https://www.gst.gov.in/)
- Now click on Services on the main screen then go to Registration and select Amendment of Registration Non-core fields
- Now, click on the Goods and Services tab
- Choose the Goods option
- Find the HSN chapter by typing the HSN code or the item name
- Now click Save and continue and complete the verification
Why is HSN Important for GST?
The main purpose of GST rate and HSN code is to make it globally accepted and systematic. It helps businesses to find the actual GST amount and a better way to classify your product or goods.
Moreover, when you use a HSN code inside your bill, you do not have to write every detail of your products. This can save your time and makes GST filing easy.
Chapter-wise HSN Code List
|Live animal stock
|Edible meat and offal
|Fish, Prawns, Squids and other seafoods
|Dairy products, eggs, honey
|Animal products that are not edible
|Live trees, flowers and plants
|Edible vegetables and roots
|Tea, coffee and spices
|Grains and Cereals
|Medicinal fruits, plants and seeds
|SAPs, gum, lac, and other extracts
|Vegetable materials and products that haven’t specified elsewhere
|Animal and vegetable oils
|Preserved meat, fish, molluscs, or other aquatic edible items
|Sugar and its confectionery
|Cocoa and its products
|Pizza, pastry and waffles
|Jams, jellies, fruits
|Miscellaneous edible preparations
|Non-alcoholic beverages like vinegar, spirits, etc.
|Residue food waste and animal fodder
|Tobacco and its substitutes
|Salt and stones
|Coal and petroleum
|Pharmaceutical products and blood
|Coloring and tanning goods
|Essential oils and cosmetics
|Soaps & waxes
|Albuminoidal products like enzymes, glues, and starches
|Pyrotechnic products, Explosives, pyrophoric alloys, combustibles, and matches
|Photographic and cinematographic products
|Unspecified chemical products
|Plastics and plastic materials
|Rubber and rubber materials
|Skins, raw hides and leather
|Products that are made of leather like travel products or handbags, harnesses and saddlery, goods made out of animal guts
|Furskins and artificial furs
|Wood, wooden articles, wood charcoal etc
|Cork and cork products
|Straw, esparto and other plaiting materials, wickerwork and basket wares
|Wood pulp and other fibrous material
|Paper and paperboard, products that are made of paper pulp, or goods made of paperboard
|Printed books, pictures, newspapers, and other printing industry products
|Wool, animal hair, yarn and other woven fabrics
|Other textile fibers that aren’t specified
|Man-made staple fibers
|Wadding, felt and nonwovens, twine ropes, cables and other nonwovens
|Carpets and other textile coverings
|Special woven fabrics, tufted textiles, lace tapestries and embroidery
|Covered, coated, or laminated textile fabrics and textile for industrial use
|Crocheted or knitted fabrics
|Apparel and clothing accessories which are crocheted or knitted
|Apparel and clothing accessories which are not crocheted or knitted
|Other made up textile products, worn clothes, sets and textile articles
|Footwears, gaiters, boots etc., and similar products
|Headgear parts and similar articles
|Umbrellas, seating sticks, walking sticks, whips, and riding crops thereof
|Artificial flowers, and products made from human hair
|Products made from stone, mica, asbestos, plaster, cement or similar articles
|Glass and glassware
|Precious stones and materials for jewelry and other items. Gold, Silver, Diamond etc.
|Iron and steel
|Products made of iron or steel
|Copper and its alloy articles
|Nickel and its articles thereof
|Aluminum and its articles thereof
|(This chapter is reserved for future use)
|Lead and its articles thereof
|Zinc and its articles thereof
|Tin and its articles thereof
|Other base metals and articles thereof
|Agricultural tools, implements, forks and spoon, cutlery and parts thereof
|Miscellaneous products made out of base metals
|Nuclear reactors, machinery and mechanical appliances, boilers, and parts thereof
|Electrical machinery, tools, equipment and parts thereof, sound producers and recorders, television and every electrical items
|Tramway or railway locomotives products
|Vehicles other than tramway or railway
|Spacecrafts, Aircrafts and parts thereof
|Cruises, ships, boats and other floating structures
|Photographic, optical, cinematographic, measuring, checking, precision, medical & surgical tools
|Watches, Clocks and parts thereof
|Musical instruments and accessories of such items
|Arms, ammunition and other military weapons
|Furnishings such as furniture, mattresses, mattress supports, bedding, cushions, and other similar stuffed items, along with lamps and lighting fixtures, fall under this category. This also includes items like illuminated signs, nameplates, and prefabricated buildings that are not specifically mentioned elsewhere
|Games, toys, and sports equipment, along with their components and related accessories
|Miscellaneous manufactured items
|Artistic creations and objects of historical value, or arts and antiques
|Project acquisitions, laboratory substances, personal shipments via air or mail, passenger luggage, and ship provisions.
The HSN code list and GST rates play an important role in the Indian taxation system for classification of goods and finding applicable tax percentages.
Moreover, a clear understanding of the GST rates with HSN code for different categories of goods and services helps businesses with accurate pricing, invoicing, and tax compliance. So, it is important for businesses to stay updated with any changes or updates to the HSN code list and GST rates to ensure full compliance with the law.
FAQs Related to HSN Code List & GST Rates
Where do you need to mention HSN code?
You need to mention HSN code list on bills of supply, GSTR-1 return and invoices.
What is the difference between HSN and SAC code?
The HSN codes are meant for goods or products whereas SAC (Service and Accounting Code) specify services only.
Is HSN code mandatory?
Yes, HSN code list is mandatory in GST invoices.
Can we send a GST bill without HSN code?
No, you can not send a GST bill without the HSN code.
Is HSN the same for all countries?
HSN is introduced by the World Customs Organization (WCO) to classify goods. HSN are similar in countries that are under the WCO.
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