FAQs on Goods & Services Tab in GST Registration Application

By | February 5, 2018
(Last Updated On: February 5, 2018)

Goods & Services Tab

1. What is HSN and SAC code?

HSN stands for Harmonized System of Nomenclature which is internationally accepted product coding system used to maintain uniformity in classification of goods.

SAC stands for Service Accounting Codes which are adopted by the Central Board of Excise and Customs (CBEC) for identification of the services.

2. Why the HSN and SAC code is important?

Harmonized System of Nomenclature classifies goods scientifically. Most of the countries have been adopted these codes for classification of their goods. It provides unique classification code for each commodity. To manage the business flow of GST it was required adopt standard system of classification. HSN classification has been adopted by the CBEC since long. But the states had not yet used this system of classification under VAT. Now entire business process GST would be based on HSN. Similarly, SAC are the unique codes to classify services.

3. I am not able to find the HSN code. What should I do now?

First, identify the suitable chapters at two digit level.

Next, identify the most suitable 4 digit subheading of the goods.

Thereafter, identify the most akin eight digit headings based on the description of goods.

 

In case you are not able to find out the correct code, opt for heading – ‘other’. Under the sub-heading, facility of populating data automatically is provided that will help you to identify the product code.

4. Where do I get the correct HSN classification of the product or Service Accounting Codes of the Services I am involved in supplying?

If you type the name of the commodities or the Services in the content field specified under Enrolment process of GST, the GSTN System automatically populates the four digit and eight digit HSN Code or Service Accounting Codes as the case may be.

 

The directory of the HSN are also hosted at the CBEC website www.cbec.gov.in . Go to “Central Excise” TAB and select “Tariff 2016-17” or Go to “Customs” TAB and select “Tariff 2015-16”. Please use these lists only for the purpose of HSN Code and Description. The tariff etc. mentioned in that list are not relevant for GST Enrolment. For Service Accounting Code, you can refer to www.aces.gov.in.

5. I am not able to understand under which headings the goods/ services supplied by me will fall. Is there any Rule for classification of goods and services?

If you are not able to classify the goods and services supplied by you, then you have to go through the Rules of Classification. The Rules prescribe scientific mechanism to classify goods or services under the HSN/SAC framework with the help of methods prescribed under these classification Rules.

 

The classification Rules of Goods are also hosted at the CBEC website www.cbec.gov.in . Go to “Central Excise” TAB and select “Tariff 2016-17” or Go to “Customs” TAB and select “Tariff 2015-16”. Please use these lists only for the purpose of HSN Code and Description. The tariff etc. mentioned in that list are not relevant for GST Enrolment. For Service Accounting Code, you can refer to www.aces.gov.in.

6. I am supplying more than one goods or services. Which one should I mention in the enrolment form?

You may enter particulars and classification codes of prominent commodities or services as the case may be. There is no need to specify all the commodities or services you are dealing with.

7. In Goods & Services tab how I can add multiple commodities one by one?

Key in a commodity code/ keyword and select one commodity from the drop down list to add the 1st record. To add a second record, click on ‘x’ icon to again enable the search bar and search for new commodity code/ keyword.

8. How many commodity can I enter in Goods & Services tab?

You can enter top five commodity of goods related to your business. One is mandatory if no service is mentioned. If at least one service is selected, commodity details are not mandatory.

9. How many services can I enter in Goods & Services tab?

You can enter top five services related to your business. One is mandatory if no goods is mentioned. If at least one goods is selected, service details are not mandatory.

10. I am not dealing in services. Is it necessary for me to enter it?

No it is not necessary, if at least one goods is mentioned under the Goods tab.

11. Can I do business for other goods and services which I have not mentioned in Goods & Services tab?

Yes you can. It is only indicative list.

12. I do not want to mention goods or services at this time. Can I fill my form?

No you need to select at least one goods or service from the list.

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