According to the GST regime, all goods and services transacted in India are classified under the HSN code system or SAC Code system where the Goods are classified under HSN Code and the Services are classified under SAC Code. Based on the HSN or SAC code, GST rates have been fixed in five slabs namely, NIL, 5%, 12%, 18% and 28%.
The Harmonized Commodity Description and Coding System generally refers to “Harmonized System of Nomenclature” or simply “HSN”. It is a multipurpose international product nomenclature developed by the World Customs Organization (WCO) which came into effect in the year 1988. HSN code or Harmonized System Nomenclature is a coding system developed by the World Customs Organization (WCO) with the vision of classifying goods all over the World in a systematic manner, which has been adopted in India. HSN code is used by more than 200 countries and over 98% of the merchandise in international trade is classified under HSN code. With the HSN code acting as a universal classification for goods, the Indian Government has decided to adopt the use of HSN code for classification of goods under GST and levy of GST.HSN Code has about 5,000 commodity groups, each identified by a six-digit code, arranged in a legal and logical structure. India has 2 more digits for deeper classification. To find the rate of goods or HSN of goods, you can use the Rate Finder of GSTaidonline for FREE.
Similarly like goods, services are also classified for their uniform recognition, measurement and taxation. These codes for Services are called Services Accounting Code or SAC. It is developed by the Service Tax Department of India. Based on the SAC code, the GST rates for services are fixed in five slabs namely Nil, 5%, 12%, 18% and 28%. If a service is not exempted from GST or if the GST rates are not provided for them, then the default GST rate for services applicable will be 18%.
To find the rates of Goods and Services, the user gets the service of Rate Finder for free. No extra charges are applied for this facility. With the help of our Rate Finder, the user will be able to know the rate applicable on a particular goods or services in less than a minute.
NOTE: No signup is required for Rate Finder.