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HSN Code List: What is it and How to find it?

Feb/20/2023

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The GST mandated using the HSN international codes for trading inside India in July of 2017. Since then, many companies have searched extensively to learn more about them. Let us lead you by the hand and tell you everything you need to know about HSN code and to find an HSN code list in a product.

HSN Code List: What is it and How to find it?

What is HSN code list?

The HSN code (Harmonized System Nomenclature code) is an internationally standardized system of names and numbers for classifying goods used for customs purposes. It provides a uniform basis for the collection of customs duties and taxes.

In the system, HSN codes are organized into 21 sections, each covering a range of goods, and each section is further divided into chapters containing groups of similar goods.

The complete list of HSN codes can be found on the official website of the World Customs Organization (WCO).

Why is HSN code list important under GST?

The HSN code list is an essential component of the GST system in India as it helps in ensuring a uniform and efficient tax system, promotes transparency and fairness, and supports the overall growth of the economy.

Specifically, under India's Goods and Services Tax (GST) system, the HSN code is vitally significant for classifying goods and services for the purpose of charging the appropriate GST rate. To verify that the appropriate amount of tax is being imposed on each item, the government uses the HSN code to keep tabs on their distribution and movement.

Another benefit of using the HSN code is that it gives a consistent method for identifying the applicable GST rate for various products and services. It facilitates compliance with tax laws and aids in the fight against tax evasion.

How does HSN code work?

The HSN code list for GST assigns a unique 6-digit code to each product or item, based on its nature and characteristics.

When a business applies for GST registration, it needs to mention the HSN code of the goods and services it deals in. The HSN code is then used for invoicing and tax calculation purposes. Businesses must mention the HSN code on the invoices they issue, which allows the government to track the movement of goods and ensure that the correct amount of tax is being paid.

How do I find the HSN code for a product?

You can find the HSN code for a product by searching the HSN code list available on the official website of the Central Board of Indirect Taxes and Customs (CBIC).

The HSN code list is a comprehensive database that classifies all goods and services based on their nature and characteristics and assigns a unique 6-digit HSN code to each product.

Here's the process to find the HSN code for a product:

Visit the official website of the CBIC: https://www.cbic.gov.in/
Click on the "HSN Code" link under the "Information" section.
Search for the product or service you are looking for by using keywords, product descriptions, or other relevant information.
Browse through the list of HSN codes to find the code that corresponds to your product.

It's important to note that HSN codes are regularly updated to keep pace with changing market trends and new products. If you need help finding the HSN code for your product, you can contact the CBIC or consult a tax professional for assistance.

About DNBC Financial Group

At DNBC Financial Group, the company's mission is to provide innovative and practical payment solutions that streamline the process for their clients. We work hard to understand the complexities of payments and simplify the process for our customers.

With a clear vision and dynamic approach, we aim to become the most trusted and reliable payment partner, delivering results that meet our client's needs.

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