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Apart from this, HSN code is also used to collect global trade information. , more than 98% of goods worldwide are categorized using HSN codes. Simply put, HSN code is a uniform 6 digit code used to systematically classify goods across the world. This code classifies and identifies 5000+ products. The HSN code was developed by the World Customs Organization as a multipurpose international product nomenclature or standardized system of distinguishing products. HSN code is used by the Finance Ministry for Rs. Required for businesses with turnover above Rs 5 crore. In this post, we will give detailed information about the meaning, importance of HSN code and what impact it can have on your business.
Furthermore, we will see what is the difference between HSN and SAC codes. Why is HSN code important for India? HSN code is very important in India as it is required for GST. Under GST, HSN code is used to classify goods and services. Without HSN code, it is difficult to Albania WhatsApp Number classify goods and services and correct charges cannot be determined. HSN code is used not only for GST but also for import-export and custom duty. In import-export, HSN code is used to classify goods and decide custom duty. With the help of HSN code, merchants can pay GST and custom duty correctly by classifying their products and services.
This helps the government in getting the right revenue collection and businesses also get the facility to pay the fees on the right date. It is clear that standardization and worldwide acceptance of HSN nomenclature is important. By having standard classification of items, it further promotes international trade. Because the HSN code is internationally accepted, the first 6 characters are exactly the same in every country. Additionally, the HS code has been updated to provide more numbers. India uses 4, 6, 8 digit classification, while the United States HTS code, also known as Harmonized Tariff Scheme, is used for 10-digit classification.
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