Originally posted 2022-01-22 14:12:25.
The full form of HSN is the Harmonized System of Nomenclature. This is basically a grouping of every single product on the market. This helps the traders to easily identify the type of product. Moreover, In India HSN is available on every bill to calculate the proper GST of the goods. Also, we must keep in mind that the HSN number is for a range of products and not for every single product. The nomenclature was available in the history of naming several chemicals or animals even. However, now the time is changing and we are implementing this on the business model too.
HSN is known as Harmonized System of Nomenclature. It is a grouping of every single product on the market. This helps the traders to identify the type of product quickly. However, we must keep in mind that the HSN number is for various products and not for every single product.
Furthermore, we must understand the importance of HSN numbers. The government in India can easily manage to tax the items that fall under the same category now. HSN is 6 digit number that names a certain group of products. Additionally, there are 500 trading channels that fall under the category of 6 digit HSN. The WCO World Customs Organisation handles the situation of the whole HSN system in the world. It becomes easy in the ports, to understand the amount and weight of food from the bill only. The tax rate of the same HSN number is the same as well.
HSN brings in a uniform classification of goods and assures a smooth international trade. Since 1971, India is a member of the World Customs Organization (WCO). The HSN structure includes 21 sections, with 99 Chapters, about 1,244 headings, and 5,224 subheadings. HSN system is used worldwide because it helps in the collection of international trade statistics.
In the year 1988, the HSN code came into existence and the World Customs Organization maintains and develops the HSN codes. The HSN Code system comprises different sections, chapters, etc. The classification makes it easy to differentiate. There is a total of 5,000 commodity groups and each group has a unique six-digit code.
| Term | Full Form |
| HSN | Harmonized System of Nomenclature |
FAQ’s
his is basically a grouping of every single product on the market. This helps the traders to easily identify the type of the product.
HSN is short form of Harmonized System of Nomenclature.
Harmonized System of Nomenclature is full form of HSN.
People May Also Check
| HBSAG Full Form | HCT Full Form |
| HSC Full Form | HSN Full Form |
| IATA Full Form | IBM Full Form |
| ICT Full Form | ICTC Full Form |
| IGST Full Form | IIT Full Form |