Updated GST Rates, HSN, SAC Finder

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It is very important to use updated GST Rates, HSN & SAC on Invoices, if there is any mismatch than this will bring you in huge trouble and you may get GST notice and may have to pay huge penalties due to this small mistake, so here is quick guide for you about GST Rates, HSN and SAC.

HSN Code:

HSN stands for Harmonized System of Nomenclature.
Developed by the World Customs Organization (WCO) for classifying goods worldwide.
It consists of over 5,000 commodity groups identified by a six-digit code.
HSN codes provide a logical and structured classification system supported by defined rules.
Adopted by more than 200 countries for uniform classification, customs tariffs, and international trade statistics.
Used for identifying goods in domestic and foreign trade, aiding government policies related to trade.
In India, HSN codes are used for GST (Goods and Services Tax) classification.
HSN structure: 21 Sections, 99 Chapters, 1,244 Headings, and 5,224 Subheadings.
HSN codes for GST consist of eight digits (previously six digits during Central Excise and Customs regime).
Implementation of mandatory mentioning of HSN codes in GSTR-1
As per Notification No. 78/2020 – Central Tax dated 15th October, 2020, it is mandatory for the taxpayers to report minimum 4 digit or 6 digit of HSN Code in table-12 of GSTR-I on the basis of their Aggregate Annual Turnover (AATO) in the preceding Financial Year. To facilitate the taxpayers, these changes are being implemented in a phase-wise manner on GST Portal.
Part I & Part II of Phase 1 has already been implemented from 01st April 2022 & 01st August 2022 respectively and is currently live on GST Portal. From 01st November, 2022, Phase-2 would be implemented on GST Portal and the taxpayers with up to Rs 5 crore turnover would be required to report 4-digit HSN codes in their GSTR-1. To view the detailed advisory please click here.

SAC (Services Accounting Code):

SAC codes classify services for recognition, measurement, and taxation purposes.
Issued by the Central Board of Indirect Tax to classify each service.
SAC code format: Unique six-digit number with two digits each for Chapter, Heading, and Subheading.
Used for generating invoices for services rendered.

GST Rates, HSN/SAC Finder:

There are 2 ways to search GST Rates, HSN & SAC:

Use This Link and get updated GST Rates, HSN, SAC: https://cbic-gst.gov.in/gst-goods-services-rates.html
Get it from GST portal as per below steps:

- Visit the GST portal and log in.
- Go to Services > User Services > Search HSN/SAC code.
- Select HSN checkbox and enter the code or chapter name for HSN search.
- Select the tax type and effective period.
- Click “Search” to get the details.
- For SAC codes, follow a similar process with SAC checkbox and service classification code.