VoloFin

×

Want to talk to our experts?

Please fil in the details and will revert you back soon.

    HSN Code Tracker

    HSN Code Tracker

    Having trouble classifying your products? Use our advanced HSN Code Tracker to enhance discovery and find out about their discovery.

    What is HSN Code?

    Harmonized System of Nomenclature, or HSN, is formulated to make the lives of manufacturers, exporters, and importers easy by simplifying product classification. HSN Code is the Indian alternative for the HSN code, developed by the World customs organization.

    Businesses all over the world use it as a standardized system for goods categorization. In India, HSN code uses 4, 6, and 8 digits to file and index more than 5000 products.

    Why is the HSN Code important?

    As a globally-recognized standard, HSN Code is a trusted method used by businesses all over the world. It is considered infallible and dependable – and indispensable when it to comes to categorization.

     

    Every country further adds digits for more detailed classification to their code systems. The US variant, known as HTC or Harmonized Tariff Schedule, has 10 digits. In India, the system uses 4, 6, and 8 digits.

    Why is the HSN Code used?

    HSC Code provides an all-important system for catalog products. It is internationally accepted as a logical arrangement that’s crucial for foreign and domestic trade. It is instrumental in gathering data and understanding internal and external trade scenarios.

     

    It is highly efficient, not only for traders but also the government, which refers to the systemized data to get a clear picture before developing macroeconomic policies that enhance commodity trading.

    Who provides HSN Code?

    The Directorate General of Foreign Trade, or DGFT, is responsible for providing the HSN Code – including alterations, formulation, or additions of new codes. An essential part of perfecting the system of HSN Codes is changing product descriptions, removing defunct codes, and adding new codes etc., periodically.

    How to find HSN Code using HSN Code finder?

    Search by product name: Type the name of your product, you will get recommendations of the most relevant 4 digit HSN Codes. Hit search for all results if the recommendations do not contain the right HS code. Click on the 4 digit code to get 6 and 8 digit HS code details for export-import purposes, as well as the GST rates.

    Search by HSN code: Type the first 2 or first 4 digits of the HSN code. Click on the desired result to get more information about the HSN code.

    How to use HSN code using category list? We have categorised the list of HSN codes into 23 broad sections under All categories. Navigate the menu and select the 2 digit, 4 digit, 6 & 8 digit HSN codes respectively. Find GST rates of HSN codes by clicking on 4 digit code.

    Structure & bifurcation of HSN Code

    Structure of HSN Code :

    • There are 21 sections in HSN Codes.
    • Divided in 99 Chapters wherein each chapter defines a specific category of a product.

    The bifurcation of HSN Code : The chapters are further into headings, sub-headings, and tariff items. In the 8 digit structure of an HSN Code, the first 2 digits define the Chapter, at 4 digit level are the headings, at 6 digit are the subheadings and finally at 8 digit are the tariff items.

    HSN Code and GST

    After the implementation of GST, it is now mandatory for businesses to include HSN code information in tax invoices as well as GST returns. Earlier, the HSN Code system only served its purpose for the Central Excise and Customs.In addition, GST rates reported by CBIS are based on HSN classification of commodities. Businesses must first identify the appropriate HSN Code to determine their commodities’ GST Rate. Provisions related to HSN Code under GST issued by the Central Board of Indirect Taxes (“CBIC”) were as follows:-
    • Annual Turnover less than and up to Rs 1.5 cr – Not required to mention HSN Codes
    • Annual Turnover more than 1.5 cr up to 5 cr – Required to mention HSN Code up to 2 digits
    • Annual Turnover exceeding 5 cr – Required to mention HSN Code up to 4 digits
    The above notification was remodeled to mandate 4/6- digit HSN Codes on the supply of goods on the tax invoices, making it applicable from April 1, 2021
    • Aggregate turnover in the preceding year upto 5 cr – Required to mention HSN Code up to 4 digits
    • Aggregate turnover in the preceding year more than 5 cr – Required to mention HSN Code upto 6 digits
    One should also note the following points in addition to this:-
    • For B to C businesses with turnover upto 5 cr, the requirement to report 4 digit HSN Codes is not compulsory while it is mandatory for B2B businesses.
    • For any business engaged in import-export transactions, governed by Foreign Trade Policy & customs regulations, it is mandatory to mention 8 digit HSN Codes or HS Codes as notified by DGFT on all invoices and customs paperwork.

    Fast, flexible working capital solutions to

    Empower your business growth

    Accelerate cash flow. Free-up trap liquidity. Instant fund for exporters

    Apply Now