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How to Find GST rates, right HSN/SAC Codes

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How to Find Right HSN Codes and SAC codes for generating invoice under GST for accounting. Here I am illustrating some sources available over internet to get the right HSN code and tax rates. As we all know;

  • HSN Code will be optional for tax payers having annual turnover up to 1.5 crore, but they need to provide information about description of goods.
  • It will be mandatory to report HSN code at two digits level for taxpayers
    having annual turnover in the preceding year above Rs. 1.50 Cr but uptoRs.
    5.00 Cr
  • and at four digits level for taxpayers having annual turnover above Rs.
    5.00 Cr.
  • Eight Digit Codes are required for Import Export.

Understand the structure of HSN Code

We should understand the structure of HSN code. The code is developed by world customs organisation with classification and sub classification as follows.

Sections : HSN System Consists of 21 Sections

Chapters : Each sections contains 98 Chapters Serially numbered from section 1 to section 21.

Heading Codes : Each Chapter again sub classified into Heading Codes

Products Codes : Under Heading Codes products are again sub classified as Product codes.

Product Sub Division Code :  This product codes are again classified with product sub division code.

Hope this table of HSN Coding  will help you in understanding this nomenclature system.

HSN coding Classification of products ( vegetables)

In the Above Example Section 2 talks about Vegetable Products. Section 02 contains multiple chapters with various categories of Vegetables.

Lets take the chapter 07 which talks about “edible vegetables and certain roots and tubers ” which is more generic.

This chapter again sub divided into Headings  with more specific products related to chapter 07  out of many divisions we can take  0703 “Onions,shallots,Garlic,leeks and other alliacious vegetables ,fresh or chilled”

The heading again divided in to products more specific products, We can take onion and shallot 070310

And Finally the more accurate classification; sub division of products  Onions 07031010  shallot 07031020

From the above example we can assume HSN Structure as

Chapter Code = 2 Digit HSN Code (07)

Heading Code = 4 Digit HSN Code ( chapter code 07 +heading code 03 = 0703)

Product Sub division code = 8 Digit HSN Code ( chapter code 07 +heading code 03 + products code 10 +product sub division code 10 = 07031010)

How to find out  2 Digit , 4 Digit & 8 Digit HSN Codes ?

To find-out these codes we have multiple options, Here I am selecting a website Which will give you all 3 types of HSN Codes.

Go to Cybex www.cybex.in and follow the below screenshots to find out Onions HSN Codes.

Go to Menu Indian Trade Laws >>HS Classifications

Click on Section 02  Vegetable Products

Section of HSN Code

Now click on chapter 07

Chapter of HSN Coding

Now click on Heading 0703

HSN Code heading classification

The six digit code & eight digit code will be displayed as shown below.

HSN Coding product classification

How to find-out SAC ?

Service Accounting codes are developed by central board of customs and exports for service tax department. The same coding system is absorbed by GST and used for accounting services under GST.5 Digit SAC codes are required to account services under GST.

The structure of Service Accounting Code

Let’s Understand the structure of SAC code, You have to download an Excel Sheet with classification of services with SAC Codes.

Open the file,You will see the services are classified with sections, Headings, Groups and services. as shown in the below images.

SAC codes classification with structure

Consider Deposit Services.

4 Digit SAC Code of Deposit services is  = 9971

5 Digit SAC Code of Deposit services is  = 99711

6 Digit SAC Code of Deposit Service is = 997112

Also you can Download Comprehensive list of HSN SAC  code list by Taxin

How can we find out GST rates & HSN SAC Codes of Products and services ?

Here I am Giving you some important links from which you will get GST rates with HSN/SAC.

Download Comprehensive list of HSN SAC  code list by Taxin

Taxin has published GST rates for Goods and services with HSN /SAC

GST rate finder with HSN SAC codes by CBEC

GST rate ready reckoner & booklet by gst council

GST rate finder by India Filing website.

I hope this post helps you in some ways.

Comments (1)

  • Respected Sir,

    The website is very neat and the contents about GST are very useful to understand even to a layman. Please accept my heartiest thanks and regards

    SHAILENDRA

    Reply

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