{"id":51551,"date":"2022-12-31T11:57:00","date_gmt":"2022-12-31T06:27:00","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=51551"},"modified":"2022-12-31T11:57:00","modified_gmt":"2022-12-31T06:27:00","slug":"hsn-code-chapter-wise-code-list-and-section-wise-code-list","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/hsn-code-chapter-wise-code-list-and-section-wise-code-list\/","title":{"rendered":"HSN Code &#8211; Chapter Wise Code List and Section Wise Code List"},"content":{"rendered":"\n<p>Goods and Services Tax or GST is the volume-added tax which is levied on goods which are deployed in the domestic market for consumption and on services which are used in the country. It&#8217;s a uniform track structure which is was established by the government of India in 2017 to put in place a uniform tax system which is destination based. With the introduction of the GST tax system, there have been substantial tax reforms in the country, which has simplified the process of improving transparency and reducing paperwork. GST amalgamates Central Taxes like sales tax, service tax, <strong>excise<\/strong><sup><a class=\"text-primary\" href=\"https:\/\/en.wikipedia.org\/wiki\/Excise\"><strong>[1]<\/strong><\/a><\/sup> duty, service taxes, cesses and surcharges and State Taxes like purchase tax, entertainment tax, luxury tax, and sales tax. It also has done removing the effect of many taxes levied by the central government and the state government. The GST tax system was birthed on the premise of \u201cone nation one tax\u201d with the aim of having a single unified tax structure for the whole country. It is governed by the Central Goods and Services Tax Act, 2017. In this blog, we will discuss HSN Code \u2013 Chapter Wise Code List &amp; Section Wise Code List.<\/p>\n\n\n\n<p>The\nGST Council has laid down various guidelines and norms to which businesses are\nrequired to adhere to. GST single uniform tax large number of Gurgaon services\ninvolved they are placed on down distinct GST slab. There are 5 slabs under\nwhich the GST rates are fixed: The NIL slab, where 0% tax is levied on commodity\nor services used, 5% slab, 12% slab, 18% slab and 28% slab. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/hsn-code-chapter-wise-code-list-and-section-wise-code-list\/#Harmonised_System_of_Nomenclature_Code\" >Harmonised System of Nomenclature Code<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/hsn-code-chapter-wise-code-list-and-section-wise-code-list\/#Who_Is_Required_To_Apply_The_Harmonised_System_Of_Nomenclature_Code\" >Who Is Required To Apply The Harmonised\nSystem Of Nomenclature Code?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/hsn-code-chapter-wise-code-list-and-section-wise-code-list\/#Structure_of_HSN_Code\" >Structure of HSN Code<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/hsn-code-chapter-wise-code-list-and-section-wise-code-list\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Harmonised_System_of_Nomenclature_Code\"><\/span>Harmonised System of Nomenclature Code<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nHarmonised System of Nomenclature or HSN was introduced by the World Customs\nOrganisation or the WCO. The primary object of introducing the HSN codes was to\nsystemically classify global commodities. This code can be used to find out the\nnumber of commodities imported and exported in the country and the tax rates in\na jurisdiction and also aids in regulating global transactions involving\ncommodities. It has simplified and facilitated the global trade of commodities\nand goods between different countries across the world. These codes are used\nglobally and goods, both foreign and domestic trade; moreover, it can also be\nused to gather information and insight into foreign trade and domestic trade\nwhich the country is dealing with. Since HSN is a globally recognised standard,\nthe first 6 digits of the HSN code are the same in all countries; however,\ndifferent countries have developed classifications and added more digits to\ntheir own harmonised code systems. <\/p>\n\n\n\n<p>These codes were earlier applicable only for the central excise and customs but posted the implementation of <strong><a class=\"text-primary\" href=\"https:\/\/corpbiz.io\/gst-registration\">GST<\/a><\/strong> in India, imports and exports standardised codes and these codes, which are globally accepted, have also been adopted in India. Now businesses are required to identify their correct code to determine the GST rate of their commodity. The Directorate General of Foreign Trade or the DGFT regulates any addition or changes or formulation of new codes in these codes. Any change in the description of products, removing defunct codes or addition of any new codes are conducted periodically to perfect the HSN code system. These codes have eliminated the need to upload detailed descriptions of the products it saves time and makes it easier to file GST returns since the whole process becomes alternative.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_Is_Required_To_Apply_The_Harmonised_System_Of_Nomenclature_Code\"><\/span>Who Is Required To Apply The Harmonised\nSystem Of Nomenclature Code?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nGovernment of India requires businesses the compulsorily mention a 4 digit or a\n6 digit HSN code in table 12 of GSTR-1 and in the tax invoices. Businesses\nwhich have a turnover of up to \u20b95,00,00,000 the last\nfinancial year are required to mention a 4 digit HSN code in there GSTR-1. Meanwhile,\nbusinesses with a turnover exceeding \u20b95,00,00,000\nmust mention a 6 digit HSN code and there GSTR-1. An 8 digit HSN code is\nrequired to be mentioned by businesses which are involved in import and export.<\/p>\n\n\n\n<p>For\nexports, it is mandatory to have ITC-HS codes. ITC hey stands for the Indian\ntariff code or the Indian trade classification. It was adopted for important\nexport operations in India. ITC-HS codes have been segregated into 2 schedules.\nThe first schedule has an 8 digit nomenclature and the second schedule has\ndetails pertaining to the goods.<\/p>\n\n\n\n<p>It\nis mandatory to mention the 8-digit HSN code on the shipping bill.\nNon-compliance can lead to non-accrual export benefits he did however when it\ncomes to GST, these codes are not compulsory for businesses with a turnover which\nis less than \u20b91.5 crore.<\/p>\n\n\n\n<p>HSN\ncodes are mainly dealt with by traders and dealers who engaged with global\ntrade of commodities and goods. They are required to adopt HSN codes which\nrange from 2 digit codes to 4 digit codes and 8 digit codes depending upon\ncertain criteria like:<\/p>\n\n\n\n<ul><li>In case the turnover of the business is not\nmore one \u20b91.5 crore, there is no requirement to\nadopt the mandates pertaining to these codes.<\/li><li>If the turnover of the business is up to \u20b95,00,00,000,\nsuch businesses are required to adopt a 4 digit HSN code for its business.<\/li><li>In case the turnover of the business is more\nthan \u20b95,00,00,000,\nsuch businesses are required to adopt a 6 digit HSN Code for its business.<\/li><\/ul>\n\n\n\n<p>Failure\nto comply with the mandate of applying the HSN code on GST bills will make the\nbill invalid.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Structure_of_HSN_Code\"><\/span>Structure of HSN Code<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nHSN module provides the classification of the commodities into various sections\nand chapters. There are 21 Sections and 99 Chapters. Each chapter contains a\nspecific category of goods or commodities. The chapters are further divided\ninto headings and subheadings and tariff items. There are 1244 headings and\n5244 sub-headings. If this code is an 8 digit structure, the first 2 digits of\nthe code give an idea about the chapter; the next digits put into the heading\nthe 5th and 6 digits pertain to the sub heading and the next 2 digits pertain\nto the tariff rates. <\/p>\n\n\n\n<p>The\nsections and the chapters broadly describe the categories of the goods and\ncommodities, and the headings and subheadings provide the description of the\nproduct in detail. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The World Customs Organization established the Harmonised System of Nomenclature, which is a globally recognised structure classify and identify goods globally in both the domestic and foreign market. These codes were earlier applicable only for the central excise and customs but posted the implementation of GST in India, imports and exports standardised codes and these codes, which are globally accepted, have also been adopted in India. If this code is an 8 digit structure, the first 2 digits of the code give an idea about the chapter; the next digits put into the heading, the 5th and 6 digits pertain to the sub heading and the next 2 digits pertain to the tariff rates.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read Our Article<\/b>: <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/how-to-get-iec-code-in-india\/\">How To Obtain IEC Code In India<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Goods and Services Tax or GST is the volume-added tax which is levied on goods which are deployed in the domestic market for consumption and on services which are used in the country. It&#8217;s a uniform track structure which is was established by the government of India in 2017 to put in place a uniform [&hellip;]<\/p>\n","protected":false},"author":47,"featured_media":51552,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[16],"tags":[2992],"acf":{"service_id":"132"},"authorName":"Sherin Jose","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/11\/MicrosoftTeams-image-4-e1668575330329.jpg","authorDescription":"Sherin has degrees in Law and English Literature from the University of Delhi. She is adept at legal research and writing and enjoys discussing and analysing important legal developments. Her primary interests lie in Corporate, FinTech and IPR Law and she is always on the lookout for exploring new developments in the area. She is an avid reader who loves classics and contemporary fiction. She likes to travel, bake and obsess over cat videos in her free time.","postViews":4275,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/51551"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/47"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=51551"}],"version-history":[{"count":2,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/51551\/revisions"}],"predecessor-version":[{"id":51554,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/51551\/revisions\/51554"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/51552"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=51551"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=51551"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=51551"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}