3 min
03 July 2024
HSN (Harmonized System of Nomenclature) codes are internationally standardized numerical codes for classifying goods in international trade. Developed by the World Customs Organization (WCO), these codes ensure uniform classification, simplifying global trade processes. Each HSN code consists of six digits, identifying specific products. This system helps in accurate taxation, customs duties, and statistical data collection. In India, businesses use HSN codes for GST compliance, facilitating smooth trade operations and enhancing transparency in goods classification and taxation.
Tax compliance: Using the correct HSN code ensures proper tax calculation and compliance with GST regulations.
Trade facilitation: HSN codes simplify international trade by providing universally recognised product classifications.
Streamlined documentation: HSN codes reduce errors in documentation, making it easier to track and manage inventory.
Improved efficiency: Accurate HSN coding enhances supply chain efficiency and inventory management.
Check the tariff schedule: Refer to the official tariff schedule to find the relevant HSN code.
Consult experts: Seek advice from tax professionals or industry experts to ensure accurate classification.
Use online tools: Utilise online HSN code search tools for quick identification.
Verify compliance: Ensure the chosen HSN code complies with local and international regulations.
8502: Electric generating sets.
8503: Parts for electric motors.
8504: Electrical transformers.
8505: Electromagnets.
8506: Primary cells and batteries.
8507: Electric accumulators.
8508: Vacuum cleaners.
8509: Electro-mechanical domestic appliances.
8510: Shavers, hair clippers, etc.
Legal compliance: Avoids legal issues and penalties by adhering to regulations.
Efficient trade: Facilitates smooth international trade and customs clearance.
Inventory management: Enhances tracking and managing of electrical items in the inventory.
Business operations: Streamlines business operations, contributing to efficiency and accuracy.
Rapid disbursement: Funds can be received in as little as 48 hours of approval, allowing businesses to respond promptly to opportunities and needs.
No collateral required: You do not have to pledge any collateral to get our business loan, which is beneficial for small businesses without substantial assets.
Competitive interest rates: The interest rates for our business loans range from 14 to 30% per annum.
Flexible repayment schedules: Repayment terms can be tailored to align with the business's cash flow, helping manage finances without strain. You can choose a tenure ranging from 12 months to 96 months.
These features and benefits of business loans make them a highly accessible financial tool for businesses.
HSN codes for electrical items
Here are the HSN codes for various electrical items:| HSN code | Description |
| 8501 | Electric motors and generators |
| 8502 | Electric generating sets |
| 8503 | Parts for electric motors |
| 8504 | Electrical transformers |
| 8505 | Electromagnets |
| 8506 | Primary cells and batteries |
| 8507 | Electric accumulators |
| 8508 | Vacuum cleaners |
| 8509 | Electro-mechanical domestic appliances |
| 8510 | Shavers, hair clippers, etc. |
Benefits of using HSN code for electrical items
Uniform classification: HSN codes provide a standardised system for classifying electrical items, ensuring consistency.Tax compliance: Using the correct HSN code ensures proper tax calculation and compliance with GST regulations.
Trade facilitation: HSN codes simplify international trade by providing universally recognised product classifications.
Streamlined documentation: HSN codes reduce errors in documentation, making it easier to track and manage inventory.
Improved efficiency: Accurate HSN coding enhances supply chain efficiency and inventory management.
How to determine the HSN code for electrical items?
Identify the product: Determine the specific electrical item that needs an HSN code.Check the tariff schedule: Refer to the official tariff schedule to find the relevant HSN code.
Consult experts: Seek advice from tax professionals or industry experts to ensure accurate classification.
Use online tools: Utilise online HSN code search tools for quick identification.
Verify compliance: Ensure the chosen HSN code complies with local and international regulations.
Common HSN codes for electrical items
8501: Electric motors and generators.8502: Electric generating sets.
8503: Parts for electric motors.
8504: Electrical transformers.
8505: Electromagnets.
8506: Primary cells and batteries.
8507: Electric accumulators.
8508: Vacuum cleaners.
8509: Electro-mechanical domestic appliances.
8510: Shavers, hair clippers, etc.
Importance of accurate HSN code application
Tax accuracy: Ensures correct GST calculation and tax compliance.Legal compliance: Avoids legal issues and penalties by adhering to regulations.
Efficient trade: Facilitates smooth international trade and customs clearance.
Inventory management: Enhances tracking and managing of electrical items in the inventory.
Business operations: Streamlines business operations, contributing to efficiency and accuracy.
Conclusion
Accurate application of HSN codes for electrical items is crucial for maintaining tax compliance, legal adherence, and efficient business operations. By using the correct HSN code, businesses can streamline inventory management and facilitate international trade.Explore Bajaj Finserv Personal Loan
Here are some of the key advantages of our business loan that make it an ideal choice for your business expenses:Rapid disbursement: Funds can be received in as little as 48 hours of approval, allowing businesses to respond promptly to opportunities and needs.
No collateral required: You do not have to pledge any collateral to get our business loan, which is beneficial for small businesses without substantial assets.
Competitive interest rates: The interest rates for our business loans range from 14 to 30% per annum.
Flexible repayment schedules: Repayment terms can be tailored to align with the business's cash flow, helping manage finances without strain. You can choose a tenure ranging from 12 months to 96 months.
These features and benefits of business loans make them a highly accessible financial tool for businesses.
