GST Laws in India require GST classification of goods and services, and a unique code is attributed to each along with a unique rate of GST. GST Classification of goods and services helps in determining the correct rate of tax applicable to them. The Harmonized System of Nomenclature (HSN) is followed to ensure compatibility with the global best practices. We understand it is difficult for companies to apply correct GST classification to goods and services. We, at SMC, come to your rescue with our GST classification services. Our GST experts and experienced professionals can support our clients with the precise GST classification so that the correct rate of GST can be applied, and the GST amount can be accurately calculated.
we support the companies in the classification of goods and services so that they can determine taxable and non-taxable items, classify items into goods and services, exempt items, and the correct rate of tax.
Our first step in GST classification is identifying whether the nature of the item supplied is a good, service, or none of the two under the definitions provided under the CGST law of 2017.
Our strength lies in our knowledge of the GST classification of goods and services and the experience of dealing with such transactions. This strength allows us to classify even those activities, which are neither supply of goods nor supply of services.
There are some supplies, called mixed or composite supplies, which are difficult to understand and identify. Composite supply means a supply of two or more supplies of goods and/or services or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply. Mixed supply means two or more individual supplies of goods or services or any combination thereof, made in conjunction with each other for a single price where such supply does not constitute a composite supply. We provide the required guidance and advisory services for the classification of composite and mixed supplies, as these are difficult to understand and identify.
Once the classification of goods and services is understood, SMC identifies the correct code from the HSN or SAC codes and allocates the same in the accounting software used by the client companies so that it can be used in the future for applying the right tariff and tax calculation purposes.
