Under GST Product Classification, products in each category have been classified into HSN Codes. HSN codes need to be present at the time of filing GST Tax to the government in addition to your GST ID.
Watch the video below to learn about GST Product Classification or HSN Codes-
HSN code of a product can be of 4 digits or 2 digits. The HSN code that online sellers have to use depends on your annual turnover. Let us learn this with the help of an example.
Ramesh, Suresh and Jai are three online sellers who are selling leather shoes with rubber soles. Let us see which HSN code will they use-
- Ramesh: Annual Turnover is greater than 5 crores then HSN Code is 6403
- Suresh: Annual Turnover is greater than 1.5 crores & less than 5 crores then HSN code is 64
- Jai: Annual Turnover is less than 1.5 crores then No HSN code is required.
Note that GST tax rate applicable for Ramesh, Suresh and Jai will either be either 5% (if shoe is less than Rs. 500) or 18% (if shoe is greater than Rs. 500).
Similarly, if an online seller is selling-
- Sports Shoes: HSN code will be 6404 or 64
- Sandals or Flipflops (Rubber/Plastic): HSN code will be 6402 or 64
- Wristwatch (metal): HSN code will be 9101 or 91
- Sunglasses or spectacles: HSN code will be 9004 or 90
- Sarees: HSN code will be 5407 or 54
- Unstitched dress material: HSN code will be 6307 or 63
Don’t worry! In the coming days, Shop101 will be introducing an easy way to classify your products using the Shop101 App. HSN codes will be automatically assigned to your products.
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