HSN and SAC Codes are used to classify goods and services under GST. HSN i.e. Harmonized System of Nomenclature Code used to classify different goods under GST. Where as, SAC i.e. Service Accounting Code used to classify different services under GST. GST Rates & HSN Code for Natural Gums, Resins, Gum-Resins, Oleoresins, Vegetable Saps, Extracts & Pectic Substances are mentioned in chapter 13.
GST Rates & HSN Code for Natural Gums, Resins, Vegetable Saps, Extracts, etc can be summarized in following table:
|
HSN Code |
Description |
Rate (%) |
Effective From |
CESS (%) |
Related Export / Import HSN Code |
|
1301 |
Lac and Shellac |
NIL |
28/06/2017 |
13012000, 13019011, 13019012, 13019013, 13019014, 13019015, 13019016, 13019017, 13019018, 13019019, 13019021, 13019022, 13019029, 13019031, 13019032, 13019033, 13019034, 13019039, 13019041, 13019042, 13019043, 13019044, 13019045, 13019046, 13019049, 13019099 |
|
|
1301 |
Natural gums, resins, gum-resins and oleoresins (for example, balsams) [other than lac and shellac] |
5 |
28/06/2017 |
13012000, 13019011, 13019012, 13019013, 13019014, 13019015, 13019016, 13019017, 13019018, 13019019, 13019021, 13019022, 13019029, 13019031, 13019032, 13019033, 13019034, 13019039, 13019041, 13019042, 13019043, 13019044, 13019045, 13019046, 13019049, 13019099 |
|
|
1301 |
Compounded asafoetida commonly known as heeng |
5 |
28/06/2017 |
13012000, 13019011, 13019012, 13019013, 13019014, 13019015, 13019016, 13019017, 13019018, 13019019, 13019021, 13019022, 13019029, 13019031, 13019032, 13019033, 13019034, 13019039, 13019041, 13019042, 13019043, 13019044, 13019045, 13019046, 13019049, 13019099 |
|
|
1302 |
Vegetable saps and extracts; pectic substances, pectinates and pec-tates; agar-agar and other mucilages and thickeners, whether or not modified, derived from vegetable products. |
18 |
28/06/2017 |
13021100, 13021200, 13021300, 13021911, 13021912, 13021913, 13021914, 13021915, 13021916, 13021917, 13021918, 13021919, 13021920, 13021930, 13021990, 13022000, 13023100, 13023210, 13023220, 13023230, 13023240, 13023290, 13023900 |
Disclaimer: Rates given above for chocolate and other Cocoa items are mentioned according to 31st GST board meeting held on 22nd December 2018. There might be variations because of Government’s most recent updates. Against each rate, you must check the “Effective from” date mentioned herein. On the off chance that you have to check a rates earlier than “effective from”, you can keep an eye on government site.
FAQs
HSN codes are unique for each product. Under HSN, all the goods and services are divided into 21 sections, 99 chapters. Under 99 chapters there are 1244 headings and 5244 subheadings. Each item which is used for trade or commercial use, it is identified with 8 digit code using the HSN code rules.
HSN Code must be used by all dealers except in the following cases:
> Dealers who have an Annual Turnover of less than Rs.1.5 Cr
> Dealers who have registered to pay tax under the Composition Scheme
Taxpayers having turnover exceeds Rs. 1.5 crore but up to 5.00 crore will be required to mention only two digits of HSN code. Taxpayers having turnover exceeds Rs 5.00 crore will be required to mention four digits of HSN code.
Hey @HarishMehta
From 1st April 2021, Taxpayers with an aggregate Annual Turnover of more than INR 5 Crore during the financial Year 2020-2021 have to mandatorily mention 6 digits of the HSN Code in all tax invoices.
Businesses with a turnover of up to INR 5 crore in the preceding financial year will be required to mandatorily furnish 4 digit HSN code on B2B invoices.
Hope this helps!
Hey @Dia_malhotra
Let’s take an example of Cocoa powder to calculate the GST using the HSN code.
Cocoa Powder per Kg = INR1,000.
HSN Code = 18 05 00 00
GST Rate = 18% (For Cocoa powder, not containing added sugar or sweetening matter)
Therefore, GST = INR180
Hope this helps!
Hey,
What are the consequences of not mentioning or incorrectly mentioning the HSN Code?
Hey @SonalYadav
It is very crucial to mention the correct HSN/ SAC Code on the tax invoices and Form GSTR-1, barring to do so may attract a penalty of INR 50,000 (INR 25,000 each for CGST and SGST) for non-mentioning or incorrect mention of wrong HSN/ SAC Code under Section 125 of the CGST Act.
Hope this helps!
Hey @Prasana_Srinivasan, this tool can help