HSN Code Question

What is the HSN code? Does 2 product have same HSN code?

HSN stands for Harmonized System of Nomenclature. It is an internationally accepted system of product classification, developed by the World Customs Organization (WCO), to facilitate the uniform classification of goods for customs and statistical purposes. In the context of Goods and Services Tax (GST) in India, businesses use HSN codes to classify the goods they trade in for proper tax calculation and compliance.

The HSN code is a numerical code assigned to each product or group of products based on their characteristics and features. It helps in standardizing the classification of goods and simplifying the documentation and reporting processes.

The HSN code typically comprises six digits, although it can be extended to eight or more digits for more precise classification. The first two digits represent the chapter, the next two digits represent the heading, and the last two digits represent the sub-heading.

Regarding your second question, it’s possible for two different products to have the same first four digits of the HSN code (chapter and heading) but differ in the sub-heading. The more specific the HSN code, the more detailed the classification of the product. Therefore, two products with similar characteristics may share the first few digits of their HSN code but have distinct sub-headings to provide more detailed classification.

For accurate classification and determination of the HSN code for a specific product, businesses should refer to the official HSN system and guidelines. The HSN code for a particular product may influence the applicable GST rate, and using the correct code is essential for accurate tax calculation and compliance. Businesses can find the HSN codes for their products on the GST portal or in the official HSN publications provided by the government.