HSN code is in news over debate over GST rate for roti and Parotta.
Q. What is HSN code?
A. HSN is a six-digit code that classifies more than 5000 products, arranged in a legal and logical structure. To achieve uniform classification, the HSN is supported by well-defined rules and is accepted worldwide.
Q. What is usage of HSN Code?
A. HSN classification is widely used for taxation purposes by helping to identify the rate of tax applicable to a specific product in a country that is under review. It can also be used in calculations that involve claiming benefits. It also applies to import and exports. The HSN code aids in determining the quantity of all items imported or traded through a nation.
Q. What is its Importance?
A. While the primary purpose of the HSN code is the systematic classification of goods, it can also be used to gather data and solve problems that would otherwise be difficult to obtain. The result is a more efficient international trade system.
Q What are its benefits?
A. HSN is in use worldwide, with more than 200 countries participating. This impressive adoption rate can be chalked up to the benefits of HSN, which include:
Q. Are the used in GST?
A. HSN Codes for GST in India: