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The term "HSN Code" stands for the 'Harmonized System of Nomenclature,' a globally recognized system for identifying and classifying traded commodities. Developed by the World Customs Organization (WCO), the HSN Code was implemented in 1988 to provide a systematic classification of goods. The system assigns a unique code to each product, facilitating international trade by standardizing the classification process.
The HSN Code is a universal classification system used worldwide for identifying traded goods. Developed by the World Customs Organization (WCO) to streamline and harmonize the classification of commodities. The HSN Code is widely accepted across the globe, making it an effective and standardized tool for international trade.
The primary objective of the Harmonized System of Nomenclature (HSN) is to systematically and logically categorize global goods. This standard classification fosters consistency in the classification of goods and simplifies international trade procedures.
The HSN number assigned to each commodity is widely accepted globally, with over 98% of merchandise in international trade classified using this system. Although the HSN number generally remains the same for most goods, there might be slight variations in some countries based on the specific nature of the goods being classified.
The HSN structure contains 21 sections, with 99 Chapters, about 1,244 headings, and 5,224 subheadings.
The incorporation of HSN (Harmonized System of Nomenclature) codes in the GST system serves several crucial purposes:
Systematic and Global Acceptance:
HSN codes contribute to the systematic organization of goods and services, making them globally recognizable and accepted.
Streamlined Filing:
The use of HSN codes eliminates the necessity to provide a detailed description of goods, simplifying the filing process. This results in time savings and facilitates automated GST returns.
Summary of Sales Reporting:
Dealers and service providers with turnovers above specified slabs must furnish an HSN/SAC-wise summary of sales in their GSTR-1. This ensures accurate and categorized reporting of transactions, promoting transparency and compliance.
Step 1:
Login to the GST portal.
Step 2:
On the dashboard, go to ‘Services’ > ‘Registration’ >‘Amendment of Registration Non-core fields’.
Step 3:
Next, click on the ‘Goods and Services’ tab.
Step 4:
Click on the ‘Goods’ tab.
Step 5:
Search for the relevant HSN chapter by entering the HSN code or name of the item.
Step 6:
Click on ‘Save and continue’. Continue to click on the ‘Save’ button until the verification step.
Step 7:
Complete the verification and submit via DSC or EVC.
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