HSN & SAC codes alongwith gst rate

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HSN & SAC CODES ALONGWITH GST RATE

HSN codes: Basically HSN stands for a harmonized system of nomenclature. This harmonized system of the nomenclature coding system is developed by the World Customs Organization.
Now This is a global standard of the Nomenclature of normal trading goods in foreign trade.
The harmonized system of nomenclature is the codification of all tradable commodities into twenty broad sections with each and every chapter containing commodities of the same kind of nature.
Its normal vision of classifying goods from all worldwide in a systematic & logical way. It is a 6th digit uniform code that classifies more than 5k products & is accepted globally.
This HSN code is a set of defined regulations used for GST taxation objective in identifying the GST Rate of tax apply to a product in a Nation.

HSN codes of goods along with the rate of IGST, CGST, SGST mention in the below link

What is a harmonized system of nomenclature (HSN) classification?

HSN(harmonized system of nomenclature) have twenty-one sections, ninety-nine chapters, 1,244 headings, & 5,224 subheadings. Sections & chapters are arranged in order of a product’s degree of manufacture/ in terms of its technological complexity.

Natural products like animals & vegetables appear in earlier sections; man-made/technologically advanced products like machinery appear later.

Chapters have a similar structure. Take cotton, for example – Chapter 52. Cotton that has not been carded or combed appears earlier in the chapter; cotton as a woven fabric appears later.

Each Section is a collection of various chapters. Sections represent a broader class of goods, and chapters represent a particular class of goods.
Each chapter is further divided into various headings depending upon different types of goods belonging to the same class.
Each heading contains products, which are ultimately assigned an HSN code.
For better identification of goods, India and a few other countries use eight-digit codes for deeper classification.
few HSN codes also use dashes. A single dash (-) at the beginning of a description denotes an article that belongs to a group covered under a heading.
A double dash (–) indicates that the article is a sub-classification of the preceding article that has a single dash. Similarly, a triple dash (—) or a quadruple dash (—-) indicates the article is a sub-classification of the preceding article that has a double dash or triple dash.

Harmonized system of nomenclature (HSN) in Goods and Services Tax

HSN CODE IS REQUIRED ON ALL B2B INVOICES FOR EVERY TAXPAYER.

HSN codes to be declared under the GST in present circumstances

Note: A registered person with a cumulative turnover of up to 5 crores rupees in the past financial year is not required to include the number of digits of the HSN Code in a tax invoice issued in respect of supplies made to unregistered persons.

Turnover/ Sales	Number of digits of HSN to be declared in Return or invoices
Up to 1.5 crore	4
1.5 crore- 5 crore	4
More than 5 crore	6

Registered persons with a turnover of more than Rs 5 crores will be given an HSN code with up to 6 digits (it was previously 4 digits).
HSN Code was required for every B2B transaction by every taxpayer, but it was exempt for taxpayers with a turnover of up to Rs 1.5 crore.
Only B2C sales by taxpayers with a turnover of up to Rs 5 crore are exempt.

Why is HSN essential for the GST?

The motive of HSN codes is to ensure that GST is systematically and globally established. HSN codes will eliminate the need to upload detailed information about the goods. It will save time and make filing simpler as GST returns are automated.
The dealer or service provider should provide HSN/SAC with a wise conclusion of sales in its GSTR-1 if its turnover falls within the above slabs.

What are the Rules & nature for Classifying goods under the HSN(harmonized system of nomenclature) code?

In formatting a classification for a specific item, GST Dealers shall apply the General Interpretative Rules (GIR) in a systematic sequential approach. when a classification is done, there is no need to continue applying the remainder of the rules.
Further Shifting towards the next rule is only essential if the full categorization does not occur from the application of the previous rule. Classification is finally carried out when there is no uncertainty or confusion.
For the purposes of classification, every other word should take its meaning or be interpreted in its general sense, and not in a technical or strict sense.

Basis of Rule 1

Titles of sections, chapters, and sub-chapters are provided for ease of reference only.
For legal purposes, refer to headings and sub-headings to drive classification.

Basis of Rule 2a

If the goods are incomplete/unfinished and have the characteristics of the finished product, classification is the same as that of the finished product.
The heading shall also include removed/unassembled or disassembled parts.

Basis of Rule 2b

Any reference to a material or substance includes a reference to mixtures or combinations of that material or substance with other materials or substances.
The classification of goods consisting of more than one material or substance shall take place as per Rule 3.

Basis of Rule 3a

Choosing a specific heading is preferred over a general heading.

Basis of Rule 3b

Mixtures/composite goods should be classified per the material or substance that gives them their essential character.

Basis of Rule 3c

If two headings are equally suited to the item, choose the heading that appears last in numerical order.

Basis of Rule 4

If goods cannot be classified per the above rules, they are to be classified according to the goods to which they are most akin.

Basis of Rule 5

Containers specifically designed for the article and suitable for long-term use will be classified along with that article, if such articles are normally sold along with such cases. For example, a camera case would fall under cameras.
Packing materials and containers are also to be classified with the related goods except when the packing is for repetitive use.

SAC codes(Services Accounting Code):

Services will be classified as per the Services Accounting Code (SAC). In the case of services, each type of service provided is given a unified code for recognition, measurement, & taxation.
These are commonly known as Services Accounting Code. It is formulated by the CBEC.
These codes are a combination of numbers to identify the service type and the rate at which it is to be taxed. SAC Code has been in existence to define proper levy of service tax & each kind/type of service under the GST law.

SAC codes Services Accounting Code for services along with the rate of IGST, CGST, SGAT are mention in the below Link

Link

SAC code under GST