Relevance of HSN/SAC Code in GST

What is HSN Code? Harmonized System of Nomenclature, also know as HSN, was developed by the World Customs Organization (WCO). It is an internationally accepted product coding system formulated for classification of goods. It classifies more than 5,000 products and is recognized worldwide

What is SAC Code? In case of services, for each type of service, a unified code for recognition, measurement and taxation is defined. These are known as SAC codes. Unlike in case of goods where in old tax regime, HSN codes were applicable for Excise registered Manufacturers or dealers, SAC code concept remains the same under the GST regime. Purpose of HSN/SAC code It is now mandatory that every registered business is required to declare the list of goods/service they are dealing into on their respective Tax Invoice. To differentiate between the HSN code and the Service Accounting Code (SAC), the latter will be prefixed with “S.” However, for ease of public in general, the need to declare HSN/SAC code has been restricted based on the Turnover of the business. Applicability of HSN/SAC code

How to find GST Rates? Central Board of Excise and Customs (CBEC) has launched an app called GST Rate Finder– which as the name suggests is reckoner for all the tax rates under GST. You may download the app via the following link Android iOS Coming Soon

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