SEO Sai Gr. Hosp.
210183 Points
Joined July 2016
No.
The Harmonized System is an international nomenclature for the classification of products. It allows participating countries to classify traded goods on a common basis for customs purposes. At the international level, the Harmonized System (HS) for classifying goods is a six-digit code system. The Harmonized System was introduced in 1988 and has been adopted by most of the countries worldwide. The HS contributes to the harmonization of Customs and trade procedures, and the non-documentary trade data interchange in connection with such procedures, thus reducing the costs related to international trade.
The GST law has to be compatible with international standards. The concept of HSN codes was invented outside India and same is used by various member countries.
For more details refer: what-is-hsn-code-under-gst