HSN (Harmonized System of Nomenclature) codes are a globally recognized system for classifying goods and products for international trade. The Indian government adopted HSN codes in 2017 to streamline its tax system, making it easier to identify products and calculate their taxes. One of the most commonly used HSN codes in India is 9986. In this blog, we will discuss the 9986 HSN code in detail, including its definition, products covered, and its relevance in the Indian tax system.
What is the 9986 HSN code?
The 9986 HSN code falls under the Service Accounting Code (SAC) system and covers services related to support services for transportation. It includes services related to cargo handling, transportation, logistics, and packaging, among others.
Products Covered Under 9986 HSN Code
The 9986 HSN code includes a broad range of services related to transportation and logistics. Some of the specific services covered under this code include:
- Cargo handling services, such as loading and unloading of goods
- Transportation services, including land, sea, and air transportation
- Logistics and storage services, including warehousing and inventory management
- Packaging and labeling services, including custom packaging and labeling for goods
- Freight forwarding services, including arranging transportation and handling customs formalities
- Courier and mail services, including domestic and international courier services
- Rental services related to transportation, such as renting vehicles or equipment
- Other support services related to transportation, such as vehicle maintenance and repair services
Relevance in the Indian Tax System The 9986 HSN code is relevant in the Indian tax system as it helps identify the type of service being provided and calculate the applicable taxes. Services falling under this HSN code are subject to GST (Goods and Services Tax), which is currently set at 18% for most transportation and logistics services.
To summarize, the 9986 HSN code covers a broad range of services related to transportation and logistics, including cargo handling, transportation, logistics, and packaging, among others. The code is relevant in the Indian tax system as it helps identify the type of service being provided and calculate the applicable taxes.
The 9986 HSN code is particularly important for businesses involved in transportation and logistics services. By using this code, businesses can ensure that they are properly identifying their services and complying with the tax regulations in India.
For example, a company that provides cargo handling services would use the 9986 HSN code when invoicing their customers. This would allow them to charge the appropriate GST rate and ensure that they are following the correct tax rules.
Additionally, businesses can use the 9986 HSN code to keep track of their expenses related to transportation and logistics services. By properly categorizing these expenses, businesses can claim input tax credit (ITC) on the GST paid on these services. This can help reduce the overall tax liability of the business and improve its bottom line.
Conclusion
In conclusion, the 9986 HSN code is an important tool for businesses involved in transportation and logistics services in India. By properly using this code, businesses can comply with tax regulations, accurately invoice their customers, and claim input tax credit on their expenses.
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Frequently Asked Questions (FAQs)
What is the 9986 HSN code used for?
The 9986 HSN code is used to classify services related to transportation and logistics, such as cargo handling, transportation, logistics, and packaging, among others.
What products are covered under the 9986 HSN code?
The 9986 HSN code covers a broad range of services related to transportation and logistics, including cargo handling, transportation, logistics, and packaging, among others.
What is the GST rate applicable for services covered under the 9986 HSN code?
The GST rate applicable for services covered under the 9986 HSN code is 18%, which is currently the standard rate for most transportation and logistics services.
Can businesses claim input tax credit (ITC) on services covered under the 9986 HSN code?
Yes, businesses can claim input tax credit (ITC) on services covered under the 9986 HSN code, provided they have proper documentation and comply with the relevant tax regulations.
What is the difference between HSN and SAC codes?
HSN (Harmonized System of Nomenclature) codes are used to classify goods and products, while SAC (Service Accounting Code) codes are used to classify services. The 9986 HSN code falls under the SAC system.
Are there any exemptions or special provisions for services covered under the 9986 HSN code?
There may be exemptions or special provisions for certain types of services covered under the 9986 HSN code, depending on the specific circumstances and the relevant tax regulations.
Can businesses use the 9986 HSN code for international transactions?
Yes, businesses can use the 9986 HSN code for international transactions, as it is a globally recognized system for classifying services related to transportation and logistics.
How can businesses ensure they are using the correct HSN code for their services?
Businesses can consult the official HSN code list or seek guidance from tax professionals to ensure they are using the correct HSN code for their services.
Is it mandatory to mention the HSN code on invoices?
Yes, it is mandatory to mention the HSN code on invoices for services covered under the GST system in India.
Can businesses modify the HSN code on invoices?
Businesses should ensure that the HSN code mentioned on invoices is accurate and matches the service provided. Any modifications or changes to the HSN code should be made only after proper consultation with tax professionals and as per the relevant tax regulations.
