/** * The main template file * * This is the most generic template file in a WordPress theme * and one of the two required files for a theme (the other being style.css). * It is used to display a page when nothing more specific matches a query. * E.g., it puts together the home page when no home.php file exists. * * @link https://developer.wordpress.org/themes/basics/template-hierarchy/ * * @package WordPress * @subpackage Tally * @since 1.0.0 */ ?>
HSN stands for Harmonized System of Nomenclature which was developed by the World Customs Organization (WCO) with the vision of classifying goods all over the World in a systematic manner.
HSN has been applicable in India after implementation of GST. India has already been using HSN system in the Central Excise and Customs regime.
But the GST HSN is a much more detailed classification that adds another two digits to the 6-digit structure. For certain categories of person in GST, there is even an requirement to mention HSN code with GST rate in the tax invoices prepared by them.
Structure: The coding process of a commodity is organized logically by economic activity or component material. For example, animals and animal products are found in one section of the HS, while machinery and mechanical appliances are found in another. The HSN book for referring to an HSN Code for a product is organized into following, by which one can make an quick reference to the HSN Code for product he is searching for:
Sections and Chapter titles
· Describes about broad categories of goods
· The first two digits of HSN Code is designated to HSN Chapter
· These are arranged in order of a product’s degree of manufacture or in terms of its technological complexity. For Example : within Section X (Pulp of wood or of other fibrous cellulosic material; Recovered (waste and scrap) paper or paperboard; Paper and paperboard and articles thereof), Chapter 47 provides for pulp of wood or of other fibrous cellulosic materials, whereas Chapter 49 covers printed books, newspapers, and other printed matter
· For instance, natural commodities, such as live animals and vegetables are described in the early sections of the HS, whereas more evolved goods such as machinery and precision instruments are described in later sections
Headings and Sub-headings
· Describes about the Product in Specific or in detail
· The next two digits of HSN Code is attributed to Headings and the third set of two digits is for HS Sub Headings
· The headings within individual Chapters follow a similar order. For example, the first heading in Chapter 50 (Silk) provides for silkworm cocoons while articles made of silk are covered by the chapter's later headings
So it becomes important to know in which of these categories your product or good has been classified. And one can easily find that with a search using commonly used word for the product.
So the Rate Finder Tool is used to find the HSN Code for the goods or products for invoicing purposes.
What is Invoice Reference Number (IRN) in GST? Format and How to Generate IRN?