HSN Code Indian stands for the 'Harmonized System Nomenclature’ code of India. Initially, the HSN code was employed to be six-digit codes to classify merchandise for customs as well as central excise duties. To make the codes more precise, the Indian customs and central excise authorities went on to add two more digits. This finally resulted in an eight-digit HSN classification. This HSN code is essential for every trader.
The world customs organization developed a multipurpose international product nomenclature called HS code, which came into effect in 1988. India, a member of WCO since 1971, has been using HSN codes since 1986 to classify commodities for customs and central excise. Globally 5,000+ commodities are identified in a six-digit code, the first 2 digits define for chapter level, 4 digits define for sub-heading, 6 digits define for the product, further 10 digit level specifies for managed to the commodities.
The structure of the HSN code Indian has about 21 groups, and these groups are further classified into 99 chapters. The chapters are then divided into headings that are about 1244 in number. The headings are subsequently divided into 5224 subheadings.
With the implementation of GST in India, there have been many changes in HSN code. Almost all goods in India are classified using the HSN code Indian customs, which facilitates the use of HSN numbers for calculations of the goods and service tax (GST). This HSN code Indian system doesn’t only help customs agents- it also has important implications for GST. It helps in making GST systematic and globally acceptable. By using the HS code list search, there is no need to upload a detailed description for each good falling under the GST rate slabs. This allows for the automation of GST returns, saving time and money for the tax authority, and also making the trading path of the export import data smoother.
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