What does N stand for in HSN?

Correct option is A

N in HSN stands for Nomenclature. HSN stands for Harmonized System of Nomenclature, a standardized system for classifying goods worldwide. This coding system is used under GST in India to classify goods systematically for taxation purposes.

Information Booster:

1. HSN Code: A six-digit code developed by the World Customs Organization (WCO) to classify traded products.
2. It standardizes product identification for customs, taxation, and international trade.
3. In India, HSN codes are used to determine the GST rate applicable to various goods.
4. HSN classification enhances uniformity and efficiency in trade and taxation.
5. The first two digits represent the chapter, the next two the heading, and the final two the subheading.

Additional Knowledge:

• (a) Nomenclature: Correct answer; refers to the system of naming goods.
• (b) Network: Incorrect; not related to the HSN code.
• (c) National: Incorrect; HSN is a global system, not specific to one nation.
• (d) Novel: Incorrect; unrelated to the classification system.