GST HSN CODE FOR DIRECT SELLING

[Guest]

NOT ABLE TO UNDERSTAND HOW IT WILL WORK FOR DIRECT SELLING

[Alkesh Jani]

Sir/Madam,

Please elaborate your query, so that our experts can reply accordingly.

[Ganeshan Kalyani]

if you are doing trading activity then HSN of goods will be applicable . if you are a c &f agent then it is service. sac will have to be referred.

[KASTURI SETHI]

Now HSN is for both goods and services. It is a fact. SAC is not legally valid.

[KASTURI SETHI]

HSN structure contains 21 Sections with 99Chapters. 1 to 98 Chapters pertain to Goods and Chapter No.99 pertains to Services. So the term 'HSN' is proper for both goods and services.

[Ganeshan Kalyani]

yes i am aware. for sake of understanding i mentioned as sac. because initially service were been said to be classified as per Service accounting code (sac).

[Ganeshan Kalyani]

thanks for clarifying.

AI Summary

HSN classification applies to goods and services under GST, affecting direct selling and agent services. Classification under GST for direct selling requires determining whether a transaction is a supply of goods or services and then applying the corresponding HSN code; HSN now covers both goods (Chapters 1-98) and services (Chapter 99), and agency or C&F activities should be treated as services requiring service classification within the HSN framework.