Functionality to Search HSN/SAC by Name or Code on GST Portal now available at GST Portal

Recently GSTN came with the new funcitionality to search HSN/SAC code for registered taxpayers dealing in product and services. This functionality is now available on GST Portal.

Now the question arises –

What are HSN Code?

HSN or HS (Harmonised Commodity Description and Coding System) is a multipurpose international product nomenclature developed by the World Customs Organization (WCO).

WCO has 181 members, three-quarters of which are developing countries that are responsible for managing more than 98 percent of world trade. HSN standardizes the classification of merchandise under sections, chapters, headings, and subheadings. This results in a six-digit code for a commodity (two digits each representing the chapter, heading, and subheading).

India, a member of WCO since 1971, has been using HSN codes since 1986 to classify commodities for Customs and Central Excise. Customs and Central Excise added two more digits to make the codes more precise, resulting in an eight-digit classification.

What are HSN codes in GST?

HSN (Harmonized System of Nomenclature) codes are used to classify the goods and is accepted across the world. HSN codes help in filling the GST returns, import and export of goods.

Under GST, the majority of dealers will need to adopt two-, four-, or eight-digit HSN codes for their commodities, depending on their turnover the year prior.

• Dealers with turnover of less than Rs 1.5 crores will not be required to adopt HSN codes for their commodities.
• Dealers with turnover between Rs 1.5 crores and Rs 5 crores shall be required to use two-digit HSN codes for their commodities.
• Dealers with turnover equal to Rs 5 crores and above shall be required to use four-digit HSN codes for their commodities.
• In the case of imports/exports, HSN codes of eight digits shall be compulsory, as GST has to be compatible with international standards and practices.

How do I find my HSN code in GST?

Steps to follow :

STEP 1

• Go to site www.gst.gov.in

STEP 2

• Then Go to Services > User Services

STEP 3

• Then Go to Search HSN Code.

STEP 4

• Enter the specific name of commodity/products or services you are dealing in or want to know the HSN code of it. As soon as you put the name in the tab, it will show some of relevant option.

• Select one of the option.
• Then Click the search engine button.

It will show you the HSN Code for relevant commodity/products or services.