Hsn and sac of gst

Presentation on HSN & SAC of GST

1. 2021
HSN
SAC
(Indirect Tax)
Classroom
Deliberations
CA Dr PrithviRanjanParhi
11:48 AM © CA Dr Prithvi Ranjan Parhi 1

2. Classification of goods and services
HSN(HarmonizedSystemofNomenclature)isusedfor
classifyingthegoodsundertheGST.
ChaptersreferredintheRateSchedulesforgoodsarethe
ChaptersoftheFirstScheduletotheCustomsTariffAct,
1975.
AnewSchemeofClassificationofServices(Service
AccountingCode)hasbeendevisedwhereintheservices
ofvariousdescriptionshavebeenclassifiedundervarious
sections,headingsandgroups.
EachgroupconsistsofvariousServiceCodes(Tariff).
©CA.Dr.Prithvi Ranjan Parhi

3. HSN (Harmonized System Nomenclature) /
SAC (Service Accounting Code)
•ThemandatoryreportingofHSNcodeswas
introducedwhilepreparingtheGSTR-1
returnfrom1stApril2021.
•Asperthereviseddeclaration,taxpayers
withanannualaggregateturnoverofmore
thanRs.5croremustmandatorily
declaresixdigitsoftheHSNcodeonallthe
taxinvoices.
11:48 AM 3© CA Dr Prithvi Ranjan Parhi

4. HSN
•TheHarmonizedSystemofNomenclature
(HSN)isaninternationallyaccepted
methodofnaming,classifyingand
identifyingproducts.
•HSNcodesareusedtoclassifygoodsto
calculateGST.
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5. SAC
•ServiceAccountingCodes(SAC)isa
uniquecodeprovidedforrecognition,
measurementandtaxationofservices.
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6. Mention of HSN /SAC
•HSN/SACmustbementionedwhenyou
registerforGST,onyourinvoices,andon
yourGSTreturnswhichyouneedtoupload
ontheGSTPortal.
•Businessesregisteredunderthecomposition
schemearenotrequiredtomentionHSN
codesontheirinvoices.
11:48 AM © CA Dr Prithvi Ranjan Parhi 6

7. How many digits?
SLAnnual Turnover
in Preceding FY
Number of digits in HSN Code
1<5 Crores B2B Supply : 4 digits
B2C Supply : 4 digits (Optional)
2> 5 Crore B2B Supply : 6 digits
B2C Supply : 6 digits
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8. HSNSearchXXXXXXXX
ChapterHeading SubHeading
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9. Classification under HSN code
•Aproductisclassifiedundersections,chapters,headings,and
subheadings.
•Forexample,ifyouaresellingfreshbananas,youcanfindyourHSN
codeunder
•Section02:VegetableProducts,
-Chapter08:Ediblefruitsandnuts;peelofcitrusfruitsormelons,
-Heading03:BananasincludingPlantains,
-Subheading9010:Bananas,fresh.
•HSNcodewillbe0803.Ifyouareexportingbananas,yourHSNcode
willbe08039010.
•Example
HSN Code format -[xx] [xx] [xx xx]
Chapter Heading Subheading
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11. 11:48 AM © CA Dr Prithvi Ranjan Parhi 11

12. Classification of goods and services
•HSN(HarmonisedSystemofNomenclature)codeis
usedforclassifyingthegoodsundertheGST.
•AnewSchemeofClassificationofServiceshas
beendevisedwhereintheservicesofvarious
descriptionshavebeenclassifiedundervarious
sections,headingsandgroups.
•EachgroupconsistsofvariousServiceCodes
(Tariff).
•ChaptersreferredaretheChaptersoftheFirst
ScheduletotheCustomsTariffAct,1975.
11:48 AM 12© CA Dr Prithvi Ranjan Parhi

13. GST Rate
Chapter
Section
Heading
Group
Code (Tariff)

14. HSN Codes
Code Description
49119910OtherPrintedMatter,IncludingPrintedAndPhotographs–Other:Other:Hard
Copy(Printed)OfComputerSoftware
49119920OtherPrintedMatter,IncludingPrintedPicturesAndPhotographs–Other:Other:
planAndDrawingsForArchitecturalEngineeringindustrialCommercial
TopographicalOrsimilarPurposesReproducedWithTheAidOfComputerOrany
OtherDevice
84713010AutomaticDataProcessingMachinesUnitsThereof:MagneticOrOpticalReaders
MachinesForTransformingDataOnToDataMediaInCodedFormAndMachines
ForProcessingSuchData,NotElsewhereSpecifiedOrIncluded–portable
AutomaticDataProcessingMachineWeightNotMoreThan10KgConsistingOfAt
LeastACentralProcessingUnit,AKeyboardAndADisplayPersonalComputer
84714110AutomaticDataProcessingMachinesAndUnitsThereof,Magnetic,OrOptical
Readers,MachinesForTranscribingDataOnToDataMediainCodedFromAnd
MachinesForProcessingSuchData,NotElsewhereSpecifiedOrIncluded–Other
DigitalAutomaticDataProcessingMachines–ComprisingintheSameHousingAt
LeastACentralProcessingUnitAndAnOutputUnitWhetherOrNotCombined:
MicroComputer
84714120AutomaticDataProcessingMachinesAndUnitsThereofMagnetic,OrOptical
Readers,MachinesForTransformingDataOnToDataMediainCodedFormAnd
11:48 AM 14© CA Dr Prithvi Ranjan Parhi

15. SACs
•995411Constructionservicesofsingledwellingormultidewllingormulti-
storiedresidentialbuildings
•995412Constructionservicesofotherresidentialbuildingssuchasoldage
homes,homelessshelters,hostelsetc
•995413Constructionservicesofindustrialbuildingssuchasbuildingsusedfor
productionactivities(usedforassemblylineactivities),workshops,storage
buildingsandothersimilarindustrialbuildings
•995414Constructionservicesofcommercialbuildingssuchasofficebuildings,
exhibition&marriagehalls,malls,hotels,restaurants,airports,railorroad
terminals,parkinggarages,petrolandservicestations,theatresandother
similarbuildings
•995415Constructionservicesofothernon-residentialbuildingssuchas
educationalinstitutions,hospitals,clinicsincludingvertinaryclinics,religious
establishments,courts,prisons,museumsandothersimilarbuildings
•995416ConstructionServicesofotherbuildingsn.e.
•995419ServicesinvolvingRepair,alterations,additions,replacements,
renovation,maintenanceorremodellingofthebuildingscoveredabove.
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16. `
11:48 AM © CA Dr Prithvi Ranjan Parhi
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GST Rate Structure
Exempted 5 % 12 % 18% 28%
Without
Cess
With Cess
Luxury Cars
Tobacco
Aerated Drinks
Pan Masala

17. Thank you
[email protected]
11:48 AM © CA. Dr. Prithvi R Parhi 17