India has introduced the new ONE tax system for Goods and Services called GST. Every small or big business must apply for GST number. Here in this app we brought you complete list of HSN and SAC codes needed.
What is HSN ?
The Harmonized System is an international nomenclature for the classification of products. It allows participating countries to classify traded goods on a common basis for customs purposes. At the international level, the Harmonized System (HS) for classifying goods is a six-digit code system.
HSN is widespread and is adopted in more than 200 countries, covering a staggering 98% of goods in the World. It is by far, the best logical system of classification and identification adopted in International Trade. It has helped in reducing efforts and costs related to complex procedures of International Trade.
What is SAC code?
Similar to the International HSN Codes, India has adopted a Service Accounting Code (SAC) for all its services. GST will subsume the service tax, which covers all kinds of services at a national rate of 15%, apart from other rates in some cases. Since GST is a combination of goods and services both, an equable classification for services is also required. SAC will remain the same under the GST regime.
Is HSN Code is mandatory for all the dealers?
-- HSN codes shall not be used mandatory in the following cases:
- Dealers who have an annual turnover of less than INR 1.5 Crores
- Dealers registered under the Composition Scheme of GST are exempted from the usage of HSN Codes.
We have given you complete information that you need to understand GST tax System, HSN Codes, SAC Codes and also get GST TAX calculator in the app to calculate your GST tax. How much do you need pay as GST.