HSN Code after GST India
Wondering what is HSN? Find out your HSN code here!
HSN is abbreviation for Harmonized System of Nomenclature.
HSN is an internationally accepted product coding system invented abroad which was earlier used for classification of manufactured goods in India in Central Excise and import export of goods. However, with excise being removed and reforms being brought in form of One Nation One Tax (only indirect taxation though), the same HSN coding system is brought to GST regime.
HSN is an 8 digit number wherein, first 2 digits are the Chapter number, first 4 digits are broader category, and then all 8 digits including the last 4 is the specific item classification, which you have to mandatorily quote while issuing invoices, and whatever rates will be specified against the tariff item/HSN will be the GST rate for the product.
E.g.: Lets take a Chetan Bhagat Books, it being a book it falls under Chapter 49, and then heading 4901, and it specifically falls under HSN – 49011010. Now whatever rate will be listed against this HSN will be the GST rate for this item, 0% in this case.
Chapter Number: 49
Heading : 4901
HSN/Tariff Item: 49011010
Since HSN is now a mandatory field for invoicing in case of both online and offline selling, there’s no escaping from it, we better get used to it.
We already know that the GST slabs are pegged at 5%, 12%, 18% & 28%. According to the latest news from the GST council, the tax structure for common-use goods are as under:
GST Rates Structure
|Lassi||Children’s Drawing & Colouring Books|
|Unpacked Foodgrains||Unbranded Atta|
|Unpacked Paneer||Unbranded Maida|
|Unbranded Natural Honey||Prasad|
|Fresh Vegetables||Palmyra Jaggery|
|Salt||Phool Bhari Jhadoo|
|Domestic LPG||Roasted Coffee Beans|
|PDS Kerosene||Skimmed Milk Powder|
|Cashew Nuts||Footwear (< Rs.500)|
|Milk Food for Babies||Apparels (< Rs.1000)|
|Fabric||Coir Mats, Matting & Floor Covering|
|Coal||Mishti/Mithai (Indian Sweets)|
|Life-saving drugs||Coffee (except instant)|
|Fruit Juice||Preparations of Vegetables, Fruits, Nuts or other parts of Plants including Pickle Murabba, Chutney, Jam, Jelly|
|Packed Coconut Water||Umbrella|
|18%||Hair Oil||Capital goods|
|28%||Small cars (+1% or 3% cess)||High-end motorcycles (+15% cess)|
|Consumer durables such as AC and fridge||Beedis are NOT included here|
|Luxury & sin items like BMWs, cigarettes and aerated drinks (+15% cess)|