Understanding various codes in GST
Every taxpayer assigned a state-wise PAN-based GST taxpayer identification number.
·The GST code will be an alphanumeric number, it will be assigned on the basis of a number of registration, a legal organization, company, etc. within a state.
·GST codes classified into two codes, HSN stands for harmonized commodity description and SAC stands for service accounting code.
·Let’s take the view on HSN
®HSN is an internal system of naming goods. HSN is assigned to goods by organizing them in a hierarchical manner.
®The goods can be identified by using only 2 digits instead of all 8 digits.
®If a turnover of business is less than 1.5 Crore need not assess HSN in an invoice.
®The business with turnover between 1.5 Crore to 5 Crore will need to be quoted 2 digit HSN.
®If a business turnover is equal or above to 5 Crore will need to be quoted 4 digit HSN.
®All exports need to assess 8 digit HSN
®Small business under composition scheme will not need HSN.
®At the time of registration the taxpayer required to mention HSN code of the goods.
®For each type of service provided is given a unified code for recognition, measurement, and taxation.
®All requirements for SAC code is similar to HSN code requirements which are mentioned above.
®Services classified as per the services accounting code SAC, this are issued by the government for service tax.
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