Topics Covered: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
Harmonized System of Nomenclature Code:
It has been made mandatory for a GST taxpayer having a turnover of more than Rs 5 crore in the preceding financial year, to furnish 6 digits HSN Code (Harmonized System of Nomenclature Code). This comes into effect from April 1.
What does the HS code mean?- Harmonised System, or simply ‘HS’:
It is a six-digit identification code. Of the six digits, the first two denote the HS Chapter, the next two give the HS heading, and the last two give the HS subheading.
- Developed by the World Customs Organization (WCO).
- Called the “universal economic language” for goods.
- It is a multipurpose international product nomenclature.
- The system currently comprises of around 5,000 commodity groups.
Need for and significance:
- Over 200 countries use the system as a basis for their customs tariffs, gathering international trade statistics, making trade policies, and for monitoring goods.
- The system helps in harmonising of customs and trade procedures, thus reducing costs in international trade.
- About HSN Code.
What does the HS code mean? Discuss its significance.
Sources: the Hindu.