Understanding GST: Goods and Services Classification, Tax Rates, and Exemptions via HSN and SAC Systems

Classification of goods and services under GST is essential for determining tax eligibility, exemptions, and applicable tax rates. In India, goods and services are classified using the HSN and SAC systems. The HSN, developed by the World Customs Organization, is used for goods classification. Goods are categorized from Chapter 1 to 98A, and services under Chapter 99. The GST rates for goods are outlined in Notification No. 1/2017-CT (Rate) and range from 0.25% to 28%. Notification No. 2/2017-CT (Rate) lists exempt goods. Services are taxed under six slabs, with specific rates for certain construction services.