Search GST HSN Tax Rate

GST tax rates using product name or HSN/SAC

Goods and Services Tax (GST) was a big relief in Indian indirect tax system. GST not only unified the tax laws but also focused on reports which are same for all states and tax payers. One has to specify HS code in invoice. One can search GST tax rate using HS code or product description.

Mentioning correct HS code in Tax Invoice is very important, mentioning wrong HS code can result in heavy penalty.

Every registered person has to furnish invoice details in multiple forms. One has to provide invoice details in monthly GST returns, E-way Bill and E-Invoicing. Government tracks sales and purchase of a registered person using HS code. Further system automatically calculates taxes based on HS codes. Providing wrong HS code can result in mismatch of tax rates and demand notice may be issued.

How to search HS code for a product?

HS codes for accepted internationally and proposed by World Customs Organization (WCO). These codes are specified logically. WCO has provided guidelines for categorising products into different codes.

  • HS code guidelines have 21 section, sections have chapters
  • Chapters are devided into different headings
  • Sections specify particular category of products at macro level
  • Chapters further classify products at micro level
  • Headings and subheadings specifies products at deeper level
  • Section has 2 digits
  • Chapters have further 2 digits (as of now 97 chapters are specified)
  • Headings and subheading have 2 digits each.
Let's understand this with an example, section 1 specifies LIVE ANIMALS, ANIMAL PRODUCTS. Chapter 1, spcifies Live animals, heading 01 is for Live asses, mules and hinnies. So HS code 0101 indicates product is Live asses, mules and hinnies. You can search HS code by referring to list of all sections, chapters and headings. HS codes under GST are derived from Indian Tariff codes used by Indian Customs.

How to find 6 digit HSN code for a product?

By understanding HS code structure, you can find 6 digit HS code. First check nature of your product from product type from chapter and product from heading and sub-heading. Each of these will have 2 digits, combining these 6 digits will give you 6 digit HSN code.

Example, in above example we got 4 digit code. Now take heading 21 and it gives 010129 and the product is LIVE HORSES.

How to find GST tax rate applicable to product?

The tax rates applicable to products provided by GST department is for 4 digit hs code, this means rates are specified for chapter headings and not at product level. So to arrive tax rate of 6 digit HS code or 8 digit HS code, you need to check tax rate applicable to 4 digit code (chapter heading). Please also check, any exception given for heading or sub-heading in any notifications or circulars.