What is GST rate and HSN code?

knowledge of GST Rate

For traders, it is important to gather knowledge of the new taxes and classification of the products. This is the reason that you should be aware of the HSN codes. HSN is the best way to understand the nomenclature system of the commodity you trade. This is the standard classification that is developed by the World Customs Organisation. Moreover, knowledge of GST Rate HSN Code is very important to get a clear view of the trade that takes place in the international market. The HSN is primarily envisioned to ensure that GST invoicing methodologies, practices and strategies are agreed across the international borders.

GST Rate HSN Code

GST is an effective taxing system and has simple taxing structure. The GST rates are fixed at 5%, 12%, 18% and 28%. In each tax rate, there is a long list of commodities that you should be well aware of. Adding to this, there are certain staple foods and other items that are charged 0% GST. Thus, proper knowledge of GST Rate HSN Code is required to know how the particular good can be beneficial for you when you trade within or across the borders.

knowledge of GST Rate HSN Code

It is the necessity of the law that governing bodies should categorise their products according to the applicable GST rates and HSN codes. For an effective use of the GST Rate HSN Code, you can take the help of experts in this field. There are firms in the market who provide personalised service to traders to classify products according to their nomenclature and tax levied as per the GST. These experts will calculate the rates and will help you to get a true picture of the taxes you need to pay and have the knowledge to classify your product. Thus, ensure that experts help you and use the harmonised system of nomenclature to classify the services and goods.

1 comment:

  1. HSN Code stands for Harmonized System of Nomenclature. This term was introduced and developed by the WCO (World Customs Organization) to classify goods existing in the entire world in a logical and systematic manner.

    HSN Code was introduced to ensure uniformity of goods all over the world. This was done to reduce costs and efforts and help in the classification of goods in a manner that could be understood by all.