Badrinath Patel
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How will the goods and services be classified under GST regime?

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How will the goods and services be classified under GST regime?
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1 Answer

  1. The Harmonised System of Nomenclature (HSN) code shall be used for classifying the goods under the GST regime and services will be classified as per the Services Accounting Code (SAC).
    HSN code is introduced for the systematic classification of goods all over the world to avoid inconvience while trading internationally. It is a 6-digit uniform code that classifies the products worldwide. Under this, section and chapter titles describes broad categories of goods, while headings and subheadings describe products in detail. The HSN system is used by more than 200 countries and economies for reasons as it helps in the uniform classification of products and provides a base for their customs tariff.
    Similary, the SAC code means Services Accounting Code under which the services fall under the GST are classified. HSN code and SAC code are the codes used to classify goods and services under the GST regime in India.

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