HSN Full Form and Meaning
The full form of HSN is the Harmonized System of Nomenclature.. HSN is a system used to classify goods and products in an organized way. It gives every product a special code to make trade easier between countries. For example, a book, a toy, and a shirt will each have a different HSN code to show what kind of product it is.
Definition of HSN
HSN is a globally accepted system developed by the World Customs Organization (WCO). It uses numbers to identify goods. This helps businesses, traders, and governments know what products are being bought or sold, making it easier to calculate taxes like GST (Goods and Services Tax) in India.
Why is HSN Important?
- For Businesses: It helps businesses classify their products correctly so they can pay the right amount of tax.
- For Trade: HSN codes make importing and exporting goods between countries simple and clear.
- For Taxes: In India, HSN codes are used under GST to decide how much tax you need to pay for a product.
Example of HSN
- A pen may have an HSN code like 9608, and a table may have a different HSN code like 9403.
Fun Fact
HSN codes are like product barcodes, but instead of scanning, they use numbers to describe the product!
By understanding HSN, businesses can stay organized and follow rules easily.
