All about a good GST Rate finder that government has extended for usage for Tax payers :

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A good GST Rate finder should clear the ambiguities the searcher has when he turns up to GST rate finder to know about the HSN Code or SAC Code for the Product or Service respectively for which he is searching for. So we have to now first know the interlink between HSN code or SAC code with the GST Rates. Obviously a person seeks to know the GST rate for his product or service by searching through the HSN Code or SAC code of he has the Code but doesn’t knows the GST rate or reverse case scenario where he knows the rate but doesn’t knows the HSN Code or SAC code.

Before learning about the terms associated to GST rate find search let us ask questions to our self what is my need to turn up to GST rate finder. As we are all aware that the Indian Taxation System has categorized over 1211 goods for levy of GST under 6 broad categories or tax-slabs. These are 0% or No Tax, 5%, 12%, 18% and 28%. It is very important to know in which of these categories your product or good has been classified. You can easily find that with a search using commonly used word for the product. Thus a rate Finder Tool can be used to find the HSN Code for the goods or products for invoicing purposes.

Learning about intricate terms associated with GST Rate finder :

HSN Code The system of Harmonized Nomenclature System or HSN, is a 6-digit uniform code allotted to over 5000 goods and is universally accepted. Conceived and developed by World Customs Organization (WCO) in order to classify goods from all over the world in a systematic way.  Over 200 countries have adopted this system and it covers around 98% of all goods produced and traded in, under its ambit.
SAC Code The same can be easily understood in the light of HSN Code which is a classification rule for goods. SAC code list classifies the services which come under the ambit of GST rate list.

 

So we learnt that HSN Code and or SAC code has interlink with GST Rates so it becomes important now for us to interpret the HSN Code in right manner or to learn as how to interpret the HSN code in right manner so as to find the correct GST rate for Products or Services.

The HSN Code list, which is universally adopted makes it clear that every good is assigned with a 6-digit code which is unique in nature. In India, there are 2 more digits added to these 6 for further classification.

Let’s understand the HSN Code meaning through an example.

Example : 10063010 is the code for rice, parboiled where 10 is the Chapter, 06 is the heading and 30 is the product code for rice, parboiled . The last 2 digits of 10 is code allotted by Indian taxation system for rice, parboiled Had it been  Basmati rice, then the last two digits of the HSN code would have been replaced with 20 instead of 10

 

.Now let us reveal about the interlinking or bond between HSN/SAC Code with GST Rates. The bonding between HSN Code and or SAC code is necessary in order to :

  • To levy accurate GST rate prevalent in India
  • To ensure seamless compliance of GST rules.
  • To ensure a hassle-free experience while choosing the correct HSN/SAC Code for goods or services, while migrating to GST software.

 

 

 

Do every Registered Persons invoice who may be a supplier of Goods and or Services must accompany with it HSN Code and or SAC code mandatorily? Here the law envisages that only the following persons are mandatorily required to mention the HSN and or SAC Codes in their invoices. They are :

  • Importer/Exporter of goods
  • Those Indian manufacturers who have an annual turnover of more than INR 1.5 Crores,

 

So a Indian manufacturer who have an annual turnover of less than 1.5 Crores is exempt from mentioning HSN Codes in his invoices and also a dealer registered under Composition Scheme of GST is exempt from using HSN Codes.

 

As we are now well versed with HSN Codes/SAC Codes the question remains that as what information do I get on searching for particulars about a product or service? Once you feed the search keyword in the tool, you would be shown a detailed search result reflecting the Description of Goods with their respective HSN Codes and rate of CGST, SGST and IGST levied on them. So in order to know the accurate rate of levy I must be having either search codes with me or either the key word describing the product ready with me.

 

But what happens when you don’t have either or these information in hand or both the information in your hands. The question arises now whether the GST Rate finder tool would help me when i am not sure either about the keyword to search product description /Services type and nor the HSN/SAC Code. In this situation, you have to change your style of search and you have to search based on all Products or Service category and then go by searching chapter wise, for Example of your goods falls in Textile then your search should be based on chapter – Textile and in that you have to then glance through the headings and descriptions against each product and find the Product or service you are looking for.

 

What is the final output , when I get to know the HSN and or SAC code and accurate GST rates from GST rate finder tool. Once you gather all these necessary information, you can move ahead for generation of invoices as per GST format.

 

Where do I find this rate finder tool : The GST Council has gone a step further to simplify the lives of businesses across the country by providing a comprehensive GST Rate finder in the CBEC website and you can find this at the following link https://cbec-gst.gov.in/gst-goods-services-rates.html

 

You Set Up GST rates, HSN/SAC Code in Tally ERP 9 and also find HSN/SAC &GST rate want to know how, then you are at the right place. You can Setup GST Rates ,HSN/SAC Code in Tally ERP 9 and can also find HSN/SAC &GST rate. Want to know how, then you are at the right place.

 

GST rates and HSN Codes  can be configured at various levels of Tally.ERP 9

 

Configuration Usage/How to Set up
At Company level Usage :

•         We can configure GST rates &HSN/SAC at company features screen or we can say company level.

•         This rate setup is useful when all the goods and service have the same tax rate.

 

How to Set Up :

•         F11 Features > F3: Statutory & Taxation and then enable the following options :*Enable Goods & service tax ( GST) : Yes

•         Click on F12: Configure : Allow HSN/SAC details : Yes ;Show All GST tax type :  Yes ; Taxability as Taxable

•        Then enter the integrated tax, Tally will automatically split state tax & central tax. see the image below

At Stock group  level Usage :

•         You can specify GST tax rate, HSN/SAC at stock group level also.

•         This is helpful for those sellers who is having a group of items having same tax rate, HSN/SAC.

•          If we set GST rate HSN /SAC at this level all stock item under this group will be used the same rate during invoicing.

 

How to Set Up :

•         Gateway of Tally> Inventory Info> Stock Groups> Create : Set/alter GST Details : Yes

•        Now we have set tax rate for stock group. The rate HSN/ SAC set at stock group will override the rate ,HSN / SAC set at Company Level.

 

 

Likewise one can set up or configure GST Rates, HSN /SAC Code at Stock item level, Transaction level and even at ledger level when you use Tally.ERP 9 as your ERP partner. With Tally.ERP 9 software integrated with the features that GST Rate finder tool has to find GST Rates, HSN/ SAC Code, it makes it easier at time of preparation of invoices.

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