HSN code

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Hi,

In simple understanding, what is HSN code? what is its importance ?

Any info would be useful. Thanks.

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Hi,
HSN means ‘Harmonized System of Nomenclature’ which is a universal code given to any product manufactured by any country. For example: the HSN code for a writing pen would be ‘HJ4567’ which is recognised all over the world. This avoids confusions of various nomenclatures (or names) given to goods by different people / manufacturers. It is now mandatory for all manufacturers across the world to mention HSN codes on their products even for internal sales or export. Similarly, for services, it is called SAC or " Services Accounting Code" and any services like consultancy or payroll services need to mention this code on their invoices or DC. Trust this helps.
Regards.

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