Finding HSN/SAC code is one main thing that is needed while GST registration. In this article we will cover all your doubts regarding this code such as what is HSN or SAC code, its full form and structures, how to find it for gst,etc.
There are lots of product categories available in HSN or SAC code, so it is very difficult to find the exact code for your product. For this purpose you can check our HSN/SAC code finder for getting fast results in a single click.
What is HSN Code in GST?
HSN code full form is Harmonized System Nomenclature Code. It is a six-digit unique code which classifies over 5000 goods in a systematic manner. HSN code is developed by the World Customs Organization (WCO) and it is a global standard for maintaining goods.
This code is used by more than 200 countries around the world and it maintains records for 98 percent of the products available in the world.
Understanding HSN Code for GST
Now you have Understand the meaning of HSN code let us now see how its working in GST. In India every business has to maintain this standards provided by the Indian government. Check the table below for better understanding.
HSN Code Digits Requirements
Below INR 1.5 Crore
Above INR 1.5 Crore but Below INR 5 Crore
Above INR 5 Crore
For enterprise engaged in import-export works
This Table shows that:
Any enterprise whose annual turnover is not more than Rs 1.5 crore do not require HSN code.
Any enterprise whose annual turnover is more than Rs 1.5 crore but below Rs 5 crore requires 2-digit HSN code.
Any enterprise whose annual turnover is more than Rs 5 crore requires 4-digit HSN code.
Any enterprise engaged in import-export works requires 8-digit HSN code.
Understanding digits in HSN Code
Harmonized System Nomenclature codes comprises 21 pages, within which 99 chapters along with 1,244 headings and 5,224 subheadings can be found.
Here is the example 6-digit Unique code looks like - HSN-82.15.90
In this example, number 82 is given for the chapter containing the product, number 15 is given for the heading number of that product and last two number 90 is the product of that item.
SAC full form is Servicing Accounting Code. It is also a six-digit unique code which classifies the services instead of goods in an organised way. SAC code is developed by the Service Tax Department of India and this code is required when you belong to the service industry and want to opt for gst registration.
Understanding digits of SAC Code
The Servicing Accounting Code comprises 5 categories, under which there are 120 services included in Goods and Service Tax. Every service in SAC code number begins with the 99.
Here is the example 6-digit Unique code looks like - SAC- 99.85.17
In this example, number 99 is common for all services, number 85 is given for the nature of services and last two number 17 is the legal documentation for patents rights.
Many product types are found in HSN or SAC code so finding the exact code for your category is very difficult. For this reason, you can check our HSN / SAC/ GST rate finder with a single click to get fast results.
If you faced any issue regarding finding codes, then just fill our complaint form at @gstregistrations.org and we will contact you soon.