Dec27
2019What is HSN Code?
The World Customs Organization (WCO):
Benefits of HSN Classification:
The HSN system is used by more than 200 countries and economies for benefits such as:
HSN in India:
Structure of HSN Code:
The HSN structure contains 21 sections, with 99 Chapters, about 1,244 headings, and 5,224 subheadings.
Each Section is divided into Chapters. Each Chapter is divided into Headings. Each Heading is divided into Sub Headings.
1. Sections:
2. Chapter:
3. Heading:
4. Sub-heading:
The Indian Sub-classification:
Example:
Let us take HSN Code 72015010 for our reference in order to understand the structure of the HSN Code.
Service Accounting Code (SAC):
Structure of SAC:
Example:
HSN/SAC Related Rules under GST:
Annual Turnover in preceding Financial Year |
Number of Digit of the HSN Code |
Up to Rs. 1.5 Crore | NIL |
More than Rs. 1.5 Crore but up to Rs. 5 Crore. | 2 |
More than Rs. 5 Crore | 4 |
In case of Import and Export (Irrespective of Turnover) | 8 |
HSN Classification Section List:
Section No. | Section Title |
1 | Live Animals, Animal Products |
2 | Vegetable Products |
3 | Animal or Vegetable Fats and Oils and their cleavage products, prepared edible fats, Animal or Vegetable waxes |
4 | Prepared Foodstuffs, Beverages, Spirits and Vinegar, Tobacco and Manufactured Tobacco Substitutes |
5 | Mineral Products |
6 | Product of the chemicals or allied Industries |
7 | Plastics and articles thereof, Rubber and articles thereof |
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 ) |
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 |
10 | Pulp of wood or of other Fibrous Cellulosic Material, Recovered ( Waste and scrap ) paper or paperboard, paper and paperboard and articles thereof |
11 | Textile and textile articles |
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 |
13 | Articles of stone, plaster, cement, asbestos, mica, or similar materials, ceramic products, glass and glassware |
14 | Natural or cultured pearls, Precious or semi-precious stones, precious metals, Metal clad with precious metal, and articles thereof, Imitation Jewellery, Coins |
15 | Base Metals and articles of Base Metal |
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 |
17 | Vehicles, Aircraft, Vessels and Associated Transport Equipment |
18 |
Optical, Photographic, Cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus, clocks and watches, musical instruments, parts and accessories thereof
|
19 |
Arms and ammunition, parts and accessories thereof
|
20 | Miscellaneous Manufactured Articles |
21 | Works of art, Collectors' Pieces and antiques |