HNS clerification

HSN or HS (Harmonised Commodity Descripttion and Coding System) is a multipurpose international product nomenclature developed by the World Customs Organization (WCO).

Under GST, the majority of dealers will need to adopt two-, four-, or eight-digit HSN codes for their commodities, depending on their turnover the year prior.

• Dealers with turnover of less than Rs 1.5 crores will not be required to adopt HSN codes for their commodities.
• Dealers with turnover between Rs 1.5 crores and Rs 5 crores shall be required to use two-digit HSN codes for their commodities.
• Dealers with turnover equal to Rs 5 crores and above shall be required to use four-digit HSN codes for their commodities.
• In the case of imports/exports, HSN codes of eight digits shall be compulsory, as GST has to be compatible with international standards and practices.