GST Portal: Search HSN/SAC Tax Rates

Goods under GST are classified by the Harmonized System of Nomenclature (HSN) code. There are various types of goods and services. A common rate of tax is not applicable to all of them. Thus, they are classified into smaller groups and a specific GST rate is applied to the groups. Services are classified on the basis of the Service Accounting Code (SAC).

An individual can search the tax rate associated with a specific HSN/SAC code on the GST Portal. It isn’t necessary for the individual to be a registered user at the GST Portal.

GST Portal – Steps to Search HSN/SAC Tax Rates

Follow steps 2 through 8 to find HSN codes and follow steps 9 through – to find the SAC tax rates

  1. Go to the GST portal homepage

    Visit the GST Portal Homepage and login with valid credentials. Click on Services > User Services > Search HSN/SAC Code

  2. In the case of HSN Codes

    Firstly, click on the HSN checkbox.

  3. Select the tax-type

    Secondly, select the tax-type you are searching for in the Tax-Type drop-down list.

  4. Search HSN Chapter by Name or Code

    Furthermore, enter the HSN code or name of the chapter whose rates you are looking for under the “Search HSN Chapter by Name or Code.”

  5. Search HSN Code

    Additionally, enter the HSN code of the goods whose tax rates you are looking for under the “Search HSN Code” category.

  6. Select the appropriate dates

    Select the appropriate dates in the “Effective Period” category from the calendar.

  7. Click on the “Search” option.

    Finally, once the details are filled in, click on the “Search” option.

  8. Select the State

    In case you select SGST from the Tax Type list, you also need to select the State for which you want to check the tax rate. We receive the result in the following manner:

  9. In the case of SAC Codes

    Firstly, click on the SAC checkbox.

  10. Select the tax-type

    Secondly, select the tax-type you are searching for in the Tax-Type drop-down list.

  11. Enter the Service Classification Code (SAC)

    Furthermore, enter the Service Classification Code (SAC) whose rates you are looking for under the “Service by Name or Code.”

  12. Select the appropriate dates

    Additionally, select the appropriate dates in the “Effective Period” category from the calendar.

  13. Click on the “Search

    Finally, click on the “Search” option.

After the completion of the above process, the details will be displayed to the user.

FAQs

Is HSN Code is mandatory for all the dealers?

HSN codes shall not be used mandatorily in the following cases:
1. Dealers who have an annual turnover of less than INR 1.5 Crores
2. Dealers registered under the Composition Scheme of GST are exempted from the usage of HSN Codes

Why are HSN Codes important at the time of filing GST returns?

Since GST returns are completely automated, it will be hard for the dealers to upload the description of the products being supplied. Hence, HSN Codes shall be automatically picked up from the registration details of the dealer and will reduce the efforts thereby. Dealers have to be careful in choosing the correct HSN/SAC code while migrating to GST or making a fresh registration.

What is HSN / SAC Code under GST?

There are innumerous variety of goods and services. Applying a common rate of tax to all goods and services is not possible. Thus, they are classified into groups and sub-groups and a specific GST rate is applied to a specific sub-group. The most scientific way of classifying goods is on the basis of HSN while classifying services is on the basis of SAC.

HSN means the Harmonized System of Nomenclature code used for classifying goods under GST. This classification is used in Customs, Central Excise and Foreign Trade Policy. The use of HSN codes is to make GST systematic and globally accepted.

However, there is no international classification of services similar to HSN for goods. They are classified on the basis of SAC. SAC means Service Accounting Code used for classifying services under GST.

How many digits of HSN or SAC should I mention in my invoice?

Annual Turnover in previous financial year HSN Digits to be shown in Invoice & Return
T/O <= 1.5 Cr NIL
1.5 Cr < T/O <= 5 Cr 2
T/O > 5 Cr 4

In the case of Imports/ Exports, HSN codes of 8 digits shall be compulsory since GST needs to be compatible with international standards and practices.

Where should I mention HSN / SAC Code?

HSN for goods and SAC for services should be mentioned by the taxpayer at the following instances:

1. GST Registration
Under GST, every business must declare the type of goods or services they are dealing into. Thus, it is important to mention the correct HSN/SAC Code at the time of enrollment or registration.

2. GST Rate
If the taxpayer is aware of the HSN or SAC code of the good or service, he can determine the applicable GST Rate.

3. GST Invoice
When a seller issues invoice for the goods or services sold, he should mention the HSN or SAC Code in the invoice based on the turnover of his business.

4. GST Returns
When a taxpayer files the GST Return, he must report the HSN Summary. Under the Summary, details of goods or services sold categorised on basis of HSN or SAC are reported.

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FAQs

Is it compulsory to use the HSN Code?

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.

Where can I find the HSN Code List?

The list of Codes is available on the Ministry’s website which would have a list of goods with the relevant HSN Code and a list of services with a relevant SAC Code.

Who needs an HSN code?

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.