Harmonized System of Nomenclature Code

Question 1

Context?

Answer 1

From 1st april it’s mandatory for a GST taxpayer having a turnover 5 crore+ in the preceding financial year, to furnish 6 digits HSN Code.

AKA “universal economic language” for goods.

Question 2

What does the HS code mean?- Harmonised System, or simply ‘HS’?

Answer 2

6 digits
first 2 digits : of HS Chapter
middle 2 digits : HS heading
last 2 digits : HS subheading

Question 3

Developed by

Answer 3

World Customs Organization

Question 4

About

Answer 4

• international product nomenclature.

Question 5

Why

Answer 5

• Over 200 countries use the system as a basis for their customs tariffs, gathering international trade statistics, making trade policies, and for monitoring goods.
• The system helps in harmonising of customs and trade procedures, thus reducing costs in international trade.