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HSN Code (Goods)

Also searched as: HSN code meaning · HSN full form · HSN code for goods transport · HSN vs SAC

Direct Definition

HSN is the Harmonised System of Nomenclature: a standard numeric code that identifies goods, used in GST on invoices and returns. HSN is for goods; services such as transport use a SAC code instead. A transporter may write the HSN of the goods on the bilty when the goods are known.

Detailed Explanation & Statutory Rules

For a transporter, the HSN code matters in two places. On the bilty or consignment note, the HSN of the goods helps describe what is being carried. For the transporter's own freight invoice the code is the SAC for goods transport, not an HSN. In the GSTR-1 HSN summary, businesses use 4 digits if their annual turnover is up to ₹5 crore and 6 digits above that, picked from the portal dropdown. Use the correct code from the GST tariff for the goods and keep it consistent across the bilty, the party's invoice and the e-way bill. If unsure, ask the consignor, who knows the product.

Legal Reference / Act: Rule 46 of the CGST Rules, 2017 and Notification No. 78/2020-Central Tax (HSN digits in invoices and GSTR-1).

Practical Indian Freight Example

"A consignor sends cotton fabric. The bilty notes "cotton fabric, HSN 5208". The transporter's freight invoice to the consignor uses the SAC for goods transport, not 5208. The consignor's own goods invoice and e-way bill use the same HSN as the bilty."

Key Questions & Answers

What is the difference between HSN and SAC?

HSN codes goods; SAC codes services. Transport is a service, so freight invoices use SAC.

How many HSN digits are required?

In the GSTR-1 HSN summary, 4 digits if annual turnover is up to ₹5 crore and 6 digits above that.

HSN Code in Hinglish (Hindi in English letters)

HSN code kya hota hai?

HSN maal ka standard code hai jo GST invoice aur return me use hota hai. Services ke liye SAC hota hai.

Transport ke liye HSN ya SAC?

Transport service hai to freight invoice me SAC lagta hai. Bilty par maal ka HSN likh sakte hain.

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