HSN Codes for GST and GST Tax Rates

All businesses registered under GST need to know the HSN / SAC codes and tax rates for the
items they are dealing. Learn all about these to stay up to date with the latest modifications.

Whether you are dealer of goods or services, the GST laws require you to make invoices with the corresponding HSN codes for products or SAC codes for services. Along these you need to add the correct GST tax rates to your items to ensure your invoices are correct.

GST Rate Structure

The GST tax structure has been set as follows:



Tax Rate

Description

0%

Zero rate, applied to half of the items in the consumer price index(CPI) basket, such as food grains, cereal and other food essentials.

5%

Lower rate, applied to the rest of the items in the CPI basket plus other items of mass consumption.

2% and 18%

Standard rates, applied to most goods and services. Items of mass consumption that have previously been taxed between 9% and 15% will now be taxed at a rate of 12% and items that were taxed above 15% will now have a standard tax rate of 18%.

28%

Higher rate, applied to white goods such as tobacco products, aerated drinks or luxury cars. These goods will also have an additional cess on top of the 28% rate.




How to find GST Rate in India for your items?

A full list of items and their tax rates can be found here.

LATEST UPDATE: 10th November 2017:

Note: Changed marked with * have not officially been notified.

Changes in Composition Scheme

  • Composition scheme limit increased to Rs 1.5 crore*

  • 1 % GST rate for manufacturers & traders*.

  • Composition tax of 1% on turnover of taxable goods (excluded turnover of exempted goods)*.

  • Composition scheme to include suppliers of both goods and services (services not exceeding Rs 5 lakhs in total)*

  • Composition Returns, GSTR-4 due date for July -September extended to 24th December 2017.

  • Inter-state sales for composition dealers still remain prohibited.

Relief in GSTR compliance

  • All businesses will file GSTR-1 and GSTR-3B till March 2018.

  • All businesses to file GSTR-3B by 20th of next month till March 2018.

  • GSTR-2 and GSTR-3 filing dates for July 2017 to March 2018 will be worked out later by a Committee of Officers

  • Turnover under Rs 1.5 Cr have to file GSTR-1 quarterly

  • Turnover above Rs 1.5 Cr have to file GSTR-1 monthly

Extension of GSTR-1 filing Due Dates:


For turnover up to Rs. 1.5 crore:

Quarter:

Due date:

July - September

31st December 2017

October - December

15th February 2018

January - March

30th April 2018


For turnover more than Rs. 1.5 crore:

Month:

Due date:

July - October

31st December 2017

November

10th January 2018

December

10th February 2018

January

10th March 2018

February

10th April 2018

March

10th May 2018




Changes for service providers: All service providers with turnover up to Rs. 20 lakhs are exempt from GST registration. Including those who supply inter-state or through e-commerce operators.

Changes for restaurants: GST rate 5% with no input tax credit.

Other taxpayer relief measures

  • No GST to be paid on advances received on supply of goods by regular taxpayers.

  • Late Fees reduced – For delayed filing of NIL tax GSTR-3B, late fee reduced from Rs 200 per day to Rs 20 per day. Other taxpayers need to pay a late fee of Rs. 50 per day of delay in filing GSTR-3B.

  • Late Fee credit – Late fees for GSTR-3B of July, Aug and Sept waived. Any late fees paid for these months will be credited back to Electronic Cash Ledger under ‘Tax’ and can be utilized to make GST payments.

  • Timelines for the filing of GSTR-2 and GSTR-3 for July to March 2018 to be worked out by Committee of Officers. However, subsequent month filing of GSTR-1 will not be impacted.

GST Rate Changes

  • GST Rate for manufacturers and traders under composition scheme now 1 % *.

  • Reduced from 28% to 18% – Shampoo, Perfume, tiles, watches

  • Reduced from 28% to 12% – Wet grinders, tanks

  • Reduced from 18% to 12% – Condensed milk, refined sugar, diabetic food

  • Reduced from 12% to 5% – Desiccated coconut, idli dosa batter, coir products

  • Reduced from 5% to Nil – Duar meal, khandsari sugar, dried vegetables

  • For Restaurants within hotels, and room tariff less than Rs. 7,500 the GST rate is 5%. Also, the credit of ITC paid on inward supplies cannot be taken.

  • For Restaurants within hotels, and room tariff greater than Rs. 7,500 the GST rate is 18% and credit of ITC paid on inward supplies can be availed.

  • Outdoor catering continues to be charged at 18% with the availability of ITC on inward supplies.


LATEST UPDATE 6th October 2017:

As per the 22nd GST Council, the rates for certain products and services have been reduced. To find out which goods have changed tax rates read here and for services read here More reductions will happen, especially for the 28% tax rate, so watch out for the latest news from the government if this affects you.

What are HSN and SAC codes?

HSN stands for Harmonized System of Nomenclature and is an internationally known method of naming, classifying and identifying products. In India HSN codes are used to identify goods and calculated GST.

SAC or Service Accounting Codes are unique codes provided to recognise, measure and appropriately tax services.

Where should HSN and SAC codes be mentioned?

You should mention these codes when you register for GST, on your invoices and in your GST returns.

Which businesses are not required to use HSN codes while selling goods?

Businesses with an annual turnover smaller than Rs. 1.5 Crores do not have to use HSN codes to sell goods. Along with them, business registered under the composition scheme are also not required to mentioned HSN codes on invoices.

How to find your HSN codes?

Due to the diversity of goods, HSN codes have been categorised in chapters. Have a look at the table below to identify the category under which your products fall and use this website https://cbec-gst.gov.in/gst-goods-services-rates.html to identify the HSN codes you need for your business.


Chapter 1

Live Animals, Bovine & Poultry

Chapter 2

Meat & Edible Offal of Animals

Chapter 3

Fish Meat & Fillets

Chapter 4

Eggs, Honey & Milk Products

Chapter 5

Non Edible Animal Products

Chapter 6

Live Trees & Plants

Chapter 7

Vegetables

Chapter 8

Fruits & Dry Fruits

Chapter 9

Tea, Coffee & Spices

Chapter 10

Edible Grains

Chapter 11

Milling Industry Products

Chapter 12

Oil Seeds, Fruit & Part of Plants

Chapter 13

Gums, Resins, Vegetable SAP & Extracts

Chapter 14

Vegetable Material & Products

Chapter 15

Fats, Oils & Waxes their Fractions

Chapter 16

Preserved/Prepared Food Items

Chapter 17

Sugar, Jaggery, Honey & bubble Gums

Chapter 18

Chocolate & Cocoa Products

Chapter 19

Pizza, Cake, Bread, Pasta & Waffles

Chapter 20

Edible Plants - Fruits, Nuts & Juices

Chapter 21

Tea & Coffee Extract & Essence

Chapter 22

Water - Mineral & Aerated

Chapter 23

Flours, Meals & Pellets

Chapter 24

Tobacco, Stemmed & Stripped

Chapter 25

Salts & Sands

Chapter 26

Mineral Ores & Slags

Chapter 27

Fossil Fuels - Coal & Petroleum

Chapter 28

Gases & Non Metals

Chapter 29

Hydrocarbons - Cyclic & Acyclic

Chapter 30

Drugs & Pharmaceuticals

Chapter 31

Fertilisers

Chapter 32

Tanning & Colouring Products

Chapter 33

Essential Oils, Beauty Products

Chapter 34

Soaps, Waxes, Polish products

Chapter 35

Casein, Albumin, Gelatin, Enzymes

Chapter 36

Propellants, Explosives, Fuses, Fireworks

Chapter 37

Photographic & Cinematographic Films

Chapter 38

Insecticides, Artificial Carbon & Graphite

Chapter 39

Polymers, Polyethylene, Cellulose

Chapter 40

Rubber, Plates, Belt, Condensed Milk

Chapter 41

Raw hides & Skins, Leather

Chapter 42

Trunks, Suit-cases, Vanity cases

Chapter 43

Raw Fur Skins, Articles of apparel

Chapter 44

Fuel wood, Wood Charcoal

Chapter 45

Natural Cork, Shuttlecock Cork

Chapter 46

Plaiting Materials, Basketwork

Chapter 47

Mechanical & Chemical woodpulp

Chapter 48

Newsprint, Uncoated paper & paperboard

Chapter 49

Printed Books, Brochures, Newspapers

Chapter 50

Silk Worm Cocoon, Yarn, Waste & Woven Fabrics

Chapter 51

Wool materials & Waste, Animal Hairs

Chapter 52

Cotton materials, Synthetics & Woven fabrics

Chapter 53

Flex raw, Vegetable materials & Paper yarn

Chapter 54

Synthetic felaments, Woven fabrics & Rayons

Chapter 55

Synthetic felament tows & Polyster staple fiber

Chapter 56

Towels, Napkins, ropes & Netting materials

Chapter 57

Carpets & Floor coverings textile Handlooms

Chapter 58

Labels, Badges, Woven pile & Chennile, Terry towelings

Chapter 59

Rubberised textile fabrics, Convayer belts

Chapter 60

Pile,Wrap Knit,Tarry & Croched fabrics

Chapter 61

Men & Women Clothing

Chapter 62

Men & Women Jackets, Coats & Garments

Chapter 63

Blankets & Bedsheets

Chapter 64

Shoes & Footwear Products

Chapter 65

Hats & Accessories

Chapter 66

Umbrellas & Accessories

Chapter 67

Artificial flowers, Wigs & False Beards

Chapter 68

Monumental & Building Stones

Chapter 69

Bricks, Blocks & Ceramics

Chapter 70

Glasses, Mirrors, Flasks

Chapter 71

Pearls, Diamonds, Gold, Platinum

Chapter 72

Iron, Alloys, Scrap & Granules

Chapter 73

Iron tube, piles & Sheets

Chapter 74

Copper Mattes, Rods, Bars, Wires, Plates

Chapter 75

Nickel Mattes & Unwrought Nickel

Chapter 76

Unwrought Aluminium- Rods, Sheets & Profiles

Chapter 77

Unwrought Lead - Rods, Sheets & Profiles

Chapter 78

Unwrought Zinc - Rods, Sheets & Profiles

Chapter 79

Unwrought Tin - Rods, Sheets & Profiles

Chapter 80

Magnesium, Cobalt, Tungsten Articles

Chapter 81

Hand Tools & Cutlery

Chapter 82

Locks, Metal Mountings & Fittings

Chapter 83

Hand Tools & Cutlery

Chapter 84

Locks, Metal Mountings & Fittings

Chapter 85

Industrial Machinery

Chapter 86

Electrical Parts & Electronics

Chapter 87

Railway Locomotives & Parts

Chapter 88

Tractors & Motor Vehicles

Chapter 89

Balloons, Parachutes & Airlift Gear

Chapter 90

Cruise Ships & Boats

Chapter 91

Medical, Chemical & Astronomy

Chapter 92

Watches & Clocks

Chapter 93

Musical Instruments

Chapter 94

Military Weapons & firearms

Chapter 95

Furniture, Bedding & lighting

Chapter 96

Children Toys, Table & Board Games & Sports Goods

Chapter 97

Pencil Lighter Toiletries

Chapter 98

Paintings Decoratives Sculptures

Chapter 99

Machinery Lab Chemicals Drugs Medicines

Chapter 100

Services




We hope this article helped you understand about GST Rates, HSN and SAC codes for your business. Be sure to stay up to date with the latest news on GST and read the rest of our articles to learn more about how GST applies and impacts on your business.




GST Explained


GST, short for Goods and Services tax, is a new tax that will be imposed on the sale and purchase of goods and services in India. GST is meant to replace all taxes in India with a single unified tax applied to value addition instead of the total value of the product at each stage in the supply chain.

This method provides credit for the input tax paid on the purchase of goods and services, which can be offset with the tax to be paid on the supply of goods and services. As a result, this reduces the overall manufacturing cost, with the end customer paying less.

Read More

With certain current taxes remaining, the following goods and services will be fully or partially exempted from the GST

Read More

Free movement of goods: Business owners will be able to sell more in other states without having to worry about interstate transaction costs. With GST, the entry tax will be eliminated, which will save time and money spent.

Read More

Currently, there are many indirect taxes that both the state and central governments are collecting on every purchase and sale.

Read More

The GST will follow a similar model with the one before it

Read More

GST will have a 4-tier tax structure

Read More

One of the main reasons for GST being introduced in India is the tax burden that falls both on companies and consumers. With the current tax system, there are multiple taxes added at each stage of the supply chain, without taking credit for taxes paid at previous stages. As a result, the end cost of the product does not clearly show the actual cost of the product and how much tax was applied. This cascading structure is too complex and inefficient.

Read More

For inter-state transactions, the Centre will levy Integrated GST (IGST), which is equal to the average of the CGST and SGST rates. After applying IGST, CGST and SGST credits received from purchases, the seller will then pay the remaining IGST on the added value.

Read More

Businesses with turnover revenue of 20 lakhs and above will have to register and file for GST returns, with a threshold of 10 lakhs for businesses in the north east and hill states.

Read More

A combination of CGST and SGST will be applied to the import of goods and services that come to India. Tax benefits and credits will be given to the state where the imported goods and services are consumed.

Read More

GST Invoicing has never been easier to do.

Stop worrying and start working on your business



Get Sleek Bill FREE now

*14-day free Premium Trial

Offline Free

0 INR

  • Pricing features Limit of 10 documents /month
  • Pricing features Sleek Bill branding on issued documents
  • Pricing features No dedicated support
  • Pricing features Limited access to advanced features
  • Pricing features Only one design template
  • Pricing features Add and Remove Payments
  • Pricing features Unit of Measurement in Documents & Stock
  • Pricing features Service Tax with SB Cess & KKC support
Download Free

*you will start with 15 days of premium

Offline Premium

1999 INR /year

  • Pricing features Unlimited documents
  • Pricing features Dedicated email support
  • Pricing features No Sleek Bill branding
  • Pricing features Multiple invoice templates & color options
  • Pricing features Small A5 invoice template
  • Pricing features Proforma, Tax, Retail or Excise Invoices
  • Pricing features Delivery note / Challan
  • Pricing features Show Total Amount in words
  • Pricing features Show Authorized Signatory field
  • Pricing features Add Discount per Product
  • Pricing features Paypal or Custom link on invoices

Online Premium

Ribbon

1999 INR /year

  • Pricing features Unlimited documents
  • Pricing features Online Secure Access from ANY DEVICE
  • Pricing features Dedicated support
  • Pricing features Optimized Invoice templates - A4, A5
  • Pricing features Proforma, Tax, Retail or Excise Invoices
  • Pricing features Delivery note / Challan
  • Pricing features Show Total Amount in words
  • Pricing features Optimized Invoice sending & notifications
  • Pricing features Add Discount per Item Or Total in % or value
  • Pricing features Multiple user access [September]
  • Pricing features GST assisted filing [September]
sign up for free

*Start with Premium Trial - no hidden fees