GST RATE FINDER - Simplified
Find HSN/SAC code & GST Tax Rate for over 20,000 goods and services
HSN & SAC Code
HSN code or "Harmonized System of Nomenclature" is a multipurpose international product nomenclature developed by the World Customs Organization. The purpose of using the HSN codes is to ensure that GST invoicing practices are in tune with international standards of product nomenclature.HSN code is used by more than 200 countries as a basis for their customs tariffs. Currently, over 98% of the merchandise in international trade is classified under HSN code, With the HSN code acting as a universal classification for goods, the Indian Government has decided to adopt the use of HSN code for classification of goods under GST and levy of GST.
HSN Code 2017 Edition is the currently valid version applied in international trade transactions. Prior to the implementation of the HSN Code- 2017 Edition, HSN Code - 2012 Edition was applied in all international trade transactions.
SAC Code or Services Accounting Code is a classification system for services developed by the Service Tax Department of India. Using SAC code, the GST rates for services are fixed in five slabs namely 0%, 5%, 12%, 18% and 28%. If a service is not exempted from GST or if the GST rates are not provided, then the default GST rate for services of 18% would be applicable.The HSN/SAC Codes are first classified into sections, chapters, contains the six-digit codes of the Harmonized System. To look up a HSN/SAC code you can use the HSN/SAC code finder.
How does one should use HSN Codes?
Under GST, there are three different types of HSN Codes a dealer can use. There are two, four, or eight digit HSN codes for commodities, and their use depends on the dealer's turnover in the previous financial year. According to the law:
- Dealers with an annual turnover of less than Rs 1.5 crores are not required to use HSN codes when creating invoices or filing returns
- Dealers whose annual turnover is between Rs 1.5 crores and Rs 5 crores need to use the right two-digit HSN code for their commodities when invoicing or filing returns
- Dealers with annual turnover equalling Rs 5 crores and above must use a four-digit HSN code for their invoices
- In the case of import or export of goods, using the right HSN codes of eight digits is compulsory, as these GST-compliant invoices also have to be compatible with international invoicing standards and practices.
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