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What Is Inventory Management Software System?

Inventory management software is composed of business applications which monitor, manage, and organize the sales of products, purchases of materials, and other manufacturing processes. Today, inventory management software is available to simplify inventory management, cut down on errors, and help businesses optimize how they stock and order products that they sell. With inventory management software, retailers can manage sales and purchases in one system, keep track of orders and monitor inventory levels, and even invoice and collect payments from customers. Inventory management software includes integrations that can track orders in real-time and update accounting software automatically.

The main features are certainly focused on your inventory levels, but this type of software also tracks sales, purchase orders (POs), and deliveries. Zoho inventory helps you track each and every unit through features such as stock tracking, integrations for accounting & CRM, multi-shipment integration, and much more. From stock and warehouse management, publishing lists on the Marketplace, order management & delivery, as well as accounting integrations, this Zoho inventory alternative does all the necessary jobs.

Distribution software systems can have a variety of features and functionalities, including inventory control, warehouse management, CRM, order fulfillment, and accounting. Inventory and warehouse management systems are becoming indispensable for retail, wholesale, services and a number of other industries, helping a business track their produced goods and allocate them appropriately among any interested customers. Manufacturers are also using inventory management software for tracking assets, receiving new stock, and for other tasks businesses in other industries are using.

An inventory management system is the combination of technologies (hardware and software) and processes and procedures that monitors and maintains the products being inventoried, whether these products are corporate assets, raw materials and supplies, or finished products that are ready for shipment to suppliers or final consumers. An inventory management system (IMS) is a consolidated software program designed to keep track of products, inventories, orders, and fulfilment, whether they are shipped to and from customers, as well as to suppliers. CIN7 Inventory Management Software is suited to medium-sized businesses as well as larger companies that require a convenient system that supports inventory tracking, reordering, and accounting. An enterprise resource planning (ERP) system is a piece of software that handles the activities of the business, such as accounting, procurement, compliance, and supply chain operations.

In contrast, inventory management is a component of modern ERP systems, providing visibility into inventory levels, inventory on-hand, and current inventory status–this makes it visible to the entire organization in real-time. By analyzing this data, companies are able to monitor stock levels and make better use of their storage spaces. Warehouses can reduce costs by not buying inventory until they are needed, and they can get price breaks from ordering large quantities. This type of efficiency has ripple effects, which may also reduce payroll costs, as employees no longer need to waste time tracking individual parts or orders. The perceived costs of investing in inventory management software may cause hesitation in switching from manual stock accounts to an automated system.

What is GST Number (GSTIN) and How does it Help your Business?

GSTIN, which is an abbreviation of GST identification number, is a unique 15-digit ID assigned to each tax payer (primarily retailers or suppliers, or any commercial entity) registered under GST. Every business operating in a State or Union Territory is assigned a unique Goods and Services Tax identification number, popularly known as a GSTIN. GSTIN (Goods and Services Tax Identification Number) is the unique ID assigned to every registered business under GST Act. The tax authorities use GST numbers for tracking GST payments and business regular loan payments registered under the GST act.

Verifying the GST Number, also called the GSTIN, for a business is necessary for availing these benefits. Moreover, your businesses GST number helps customers, other businesses, and financial institutions check on your reliability. Once you have registered and received a GSTIN, the validation flags your business as authentic. Through GSTIN, you can perform verification on a business, its name, address, or any other details related to business registration and establishment.

If any legal entity or trade company has just a single registration in a single State, then 1 number would be assigned to it as 13th digit GSTIN as per its format. It is a 15-digit number assigned based on PAN of a business registered under GST. Before GST was introduced, all traders registered under state VAT laws were issued with a unique TIN number by their state revenue authorities; the GSTIN has replaced this. Under both the VAT and service tax regimes, the TIN numbers and service tax registration numbers were issued by states and Centre.

Service providers were assigned Service Tax Registration number by the Central Board of Indirect Taxes and Customs (CBIC). Businesses which were earlier registered using TIN systems for all their trade activities, such as taking out MSME equity loans, were instantly transferred to the GSTIN system and assigned new GST numbers. Businesses who transferred their registrations from the former indirect tax regimes to claim GST numbers were given 15-digit interim GSTINs, which were confirmed after successfully verifying the documents submitted.

Every business entity needs to get a unique number in the GST registration in order to charge taxes and avail input credit. Yes, you can apply for GST Registration online at the official GST portal, then scan and upload all required documents for getting GST number. All businesses, big or small, will have to be registered with the GST and will be given a unique GSTIN, or GST number, upon registration.

Business organisations and entities registered under GST will be provided with a unique ID number known as a GSTIN. All business entities will have to register under GST and get a 15-digit unique GST Identification number (GSTIN). GST Number or GSTIN is replacing earlier multi-registration numbers such as TIN (Taxpayer Identification Number), CST, service tax, excise, etc., used under previous system of taxation.

What Is Inventory Carrying Cost?

Inventory carrying costs are the sums your company spends on keeping products on hand over time, including costs such as storage, inventory management, insurance, etc. We will discuss the various factors that contribute to inventory holding costs, as well as how to calculate carrying costs, so that you can incorporate these costs into your accounting practices. Capital costs are the largest contributor to inventory holding costs, as they comprise the cost to buy the products that you are holding.

Inventory holding costs are the costs that the company will incur for holding and storing their inventory for a period of time. The cost that a business will incur to hold and store inventory over a certain time a company has it is called carrying costs. The definition of carrying costs for inventory is simply the expense that the business incurred to store the items in the inventory over a certain period of time, until it was used to fulfill orders.

Inventory carrying cost is a financial term, which is the amount that a business spends on holding inventory for a set amount of time, including any investments made to own, store, and maintain inventory, which is not sold. Typical storage costs, another term for inventory carrying costs, differ from industry and company size, often comprising 20% to 30% of the total inventory cost, and typical storage costs rise the longer an item is stored before being sold. Inventory holding costs include hard costs, such as the cost you invest in the item(s) being held, the physical storage facility or warehouse, and the costs for shipping and distribution, and soft costs, such as taxes, insurance, and staffing required to handle the item(s).

Inventory carrying costs will include related costs for storage, salaries, transportation and handling, taxes, and insurance, and depreciation, shrinkage, and opportunity costs. To determine inventory carrying costs, first total up the costs listed above–capital, warehousing, salaries, transportation, insurance, taxes, administration, depreciation, obsolescence, shrinkage–over one year. Total carrying costs are used by businesses to determine how much revenue they can generate, given their current stock levels.

Inventory carrying costs are used to help businesses determine how much profit can be made based on current inventory levels. Carry-over costs include the costs to lease a warehouse to store the stock, to operate the warehouse, to pay salaries of employees who work at the warehouse, any losses from theft and damage, and the insurance costs to cover the inventory. Inventory Risk Costs –risk costs vary by business, but typically include obsolescence, damage, shrinkage, and moving of inventory. By knowing how many units you have in stock, and what the costs are to your warehouse in terms of expenses such as warehouse rent, employee salaries, depreciation, insurance, and other operating processes involved with inventory storage (or storage fees if using third-party eCommerce warehouses), you will have a precise view of your storage costs.

Top Functions of Human Resource Management (HRM)

HR management (HRM) is defined as the process of managing employees within the business, with certain elements including hiring, training, compensation, and motivating employees. Some major functions of HRM, or Human Resources Management, include job design and job analysis, hiring/hiring and selection, training and development, compensation and benefits, performance management, management relations, and labor relations. The functions of HRM were developed by the Human Resource Development Secretary in order to streamline the tasks in managing an organizations human capital.

HRM is an extremely important function of any organisation as, without human resources management, companies would be unable to effectively recruit and retain employees, HRM is essential to an organizations culture and work environment. There are so many crucial areas of HRM which are necessary to make any organization work well, while keeping its employees motivated and staying compliant to any laws of any organization. Helping employees to develop skills and knowledge to prepare them for the future is a major responsibility, and it is the core function of HR.

This is another important function of HRM, since offering appropriate training and development programs not only enhances the employee retention, but it helps to create a positive working culture. Training and development also prepares employees to handle higher-level responsibility. HR leaders are also responsible for offering employee development programs in all departments.

HR leaders are instrumental in recruiting, helping build many organizations futures by overseeing their hiring processes. HR managers must conduct recruitment efforts, all the while meeting a company-wide goal to attract a diverse, multigenerational workforce. Based on input received from senior leaders, HR professionals should develop a proactive hiring plan that recruits the right talent and makes sure that the organization is not short-staffed or overstaffed, should an expansion be in the cards.

If changes are coming in to employee job paths or job skills of employees are not being utilized, the HR person can bring it up and offer suggestions with higher management. If changes are needed, following additional assessment, HR can make recommendations to management for implementation in order to accomplish goals like decreasing turnover, creating career paths for existing employees, and promoting individuals that meet desired metrics from management. The HR team could set up developmental and training programs with key members of leadership, find ways to increase an employees skillsets, and begin pursuing career paths that enable individuals within the company to advance over time into better and better positions.

From making sure employees are paid and receiving benefits to monitoring employee development, HR departments and managers strive to create workplaces in which both employers and employees are able to flourish. HR managers generally also provide support throughout the hiring and onboarding process, including making job offers, negotiating salaries, and enrolling new employees in benefits programs. HR managers touch all parts of the hiring pipeline, from reading resumes, scheduling interviews, to crafting offer letters. HR is designed to simultaneously maximize the productivity and happiness of employees, working towards achieving an organizations overall strategic goals.

What Is Inventory Valuation? Which Valuation Method is Best for Your Business?

The Internal Revenue Service allows you to choose between FIFO, or first-in-first-out, LIFO, or last-in-first-out, and specific identification only to evaluate the inventory of your taxes, although the other valuation methods may be helpful under various circumstances. The IRS has determined that, for tax purposes, the FIFO method is the only inventory-costing method that you are allowed to use if your company has international locations. Many businesses do use FIFO inventory; however, this may lead to higher total revenue and taxes.

FIFO usually results in higher gross margins, as it is common for acquisition costs to increase over time. For example, if prices increase throughout the year, then FIFO would lead to higher values of closed inventory. Because prices for components and other stocks can rise over time, using FIFO means closing inventory is valued higher, since it incurs higher cost per item to estimate. For a more accurate costing, use this approach, since it assumes the oldest, least expensive items are those sold first. Under the FIFO method, the cost of goods sold is based on the cost of materials purchased first in a given period, while the cost of finished goods is based on the cost of materials purchased next.

FIFO method assumes that inventory produced first would be the first units(s) sold and fulfilled. Under a First-In-First-Out (FIFO) estimation approach, the inventory items are sold in the order they were purchased or manufactured. This method is based on the premise that the first purchase of the inventory is the first sold.

The LIFO method is based on the premise that all goods available for sale are equal, and that each units value is calculated using the weighted average value of equal initial goods in order to determine how much was sold. With LIFO (Last In, lowest value old products would be reported as stock. With LIFO, recent costs of goods sold are aligned to the most recent sales revenues, helping determine real revenue, while being a cost-based method, a company is receiving whatever profit/loss is not accurate.

Using the FIFO method, a business cannot manipulate revenue by selecting what items to sell, since the cost of individual items sold is always the older cost. For instance, this method would provide the lowest profit since the last inventory item purchased is typically the most expensive, whereas LIFO would provide the highest profit since the first inventory item is typically the least expensive.

While there are a lot of different methods to calculate inventory costs, we are going to focus on five of the most common ones: FIFO, LIFO, WAC, SE, and FEFO. FIFO is typically the most straight forward inventory costing method retailers can use, as it is most aligned with actual inventory costs and inventory movements.

7 Ways Goods and Service Tax benefits the Economy

GST is intended to bring a single market in India, with uniform rates and procedures on taxes, and to eliminate economic barriers, thereby opening a path to achieving a domestically integrated economy. In simpler terms, GST works as an alternative for multiple indirect taxes levied by central and state governments, making Indias governments one market. Most countries that implement GST have a unified single GST system, meaning a uniform rate is applied across the nation. Since the GST is a destination-based tax, it is possible for both Centre and states to collect the tax under one joint tax base.

GST is levied on states where goods and services are consumed (not where they are manufactured), making it a destination-based tax. It is a uniform tax levied on goods and services supplied directly from manufacturers to consumers, and it has essentially replaced several indirect taxes. GST has a dual structure, in which both the centre and states are empowered to levie a tax simultaneously on the supply of goods and services.

Compared with the GST Unified Economy, in which taxes are collected by the Federal Government and then distributed among states, under a dual GST structure, a Federal GST is levied on top of a State sales tax. A country with a single GST platform merges the central taxes (e.g., sales taxes, consumption taxes, excise duties, and service taxes) with the state-level taxes (e.g., entertainment taxes, admission taxes, transmission taxes, consumption taxes, and luxury taxes) and collects the central taxes (e.g., the consumption tax) into one uniform tax.

Some goods and services are exempted from the GST, and are instead covered by an existing levy in a particular state, such as a value-added tax (VAT) — a tax paid at each step in a supply chains value-added tax — a tax paid at each step in a chains. The earlier non-GST system implied taxes were paid on value and margins of goods at each step of production.

Tax policies have direct impact on the total economy through shifting the demand for goods and services. Tax policy also impacts the overall economy by influencing government deficits. Governments affect the economy by changing tax rates and types, spending levels and composition, and borrowing levels and forms.

Tax policies can change long-run economic output in sustainable ways, changing incentives to work, save, and invest. Tax policy also changes firms cash flows or incentives to invest, and thus changes demand for investment goods. Non-neutral tax expenditures may suppress growth by shifting investments into areas that are not as productive as they could be, instead of increasing capital investment and growth throughout the economy.

State and local tax cuts and incentives are arguably not the best use of government revenues, even if the goal is to incentivize for-profit firms to employ more people. In particular, there is little evidence that state and local tax cuts–when paid for with cuts to government services–stimulate economic activity or job creation. This claim is made even though state and local governments have to reduce public services in response to the incentives provided and the reductions imposed on taxes. These studies have typically found that raising taxes and using the extra revenue to pay for more public services boosts economic growth.

Raising taxes used to improve public services may be the best way to stimulate an economy. However, evidence suggests that tax increases, used to increase the amount and quality of government services, may promote economic development and job growth. This result supports the conclusion that state and local officials must take public services, along with the effects on the economy of taxes, into consideration in designing tax policies that aim at optimal employment growth.

Economies with simpler, better-designed tax systems are capable of increasing business activity, and eventually, investment and employment.11 New studies suggest that one important factor in business entrance is ease of paying taxes, independent of corporate tax rates. Many countries have reduced double taxation on business income through greater integration of individual and corporate tax codes, reducing distortions, lowering capital costs, and encouraging investment. Eliminating double taxation of corporate income will level the playing field between various forms of enterprise, lower the tax burden of investments, and reduce the distortions that influence corporate funding decisions. Removing Double taxation of corporate income would level the playing field among different forms of businesses, reduce the tax burden on investment, and reduce distortions affecting business financing decisions.7 The typical tax income distributions according to firm size in economies across sub-Saharan Africa, Middle East, and North Africa indicate that micro-, small-, and medium-sized enterprises account for over 90% of tax payers, yet only 25-35% of the tax revenues.8 Imposing higher tax rates on businesses in this range may not raise a lot of government tax revenues, but could lead businesses to shift into the informal sector, or, even worse, to stop operating.

Modest tax rates are particularly important to small and medium-sizeenterprises, which contribute to economic growth and employment but do not add significantly to tax revenue.7 Typical distributions of tax revenue by firm size for economies in Sub-Saharan Africa and the Middle East and North Africa show that micro, small and medium-size enterprises make up more than 90 % of taxpayers but contribute only 25-35 % of tax revenue.8 Imposing high tax costs on businesses of this size might not add much to government tax revenue, but it might cause businesses to move to the informal sector or, even worse, cease operations. Recent data from World Development Indicators and Human Development Indexes suggest the gains are effectively captured and channeled to higher-quality public goods and services (Figure #2). The collection of taxes and fees is the basic way that countries generate government revenues, enabling them to fund investments in human capital, infrastructure, and services to citizens and businesses.

Rather than pushing more fiscal stimulus, or leaving the Fed to manage inflation with higher interest rates, policymakers should focus on increasing the economys productive capacity through tax law reforms to prioritize economic growth and opportunities. In the near term, governments can focus on stabilizing the macroeconomy–for instance, expanding spending or cutting taxes to boost an inefficient economy, or cutting spending or raising taxes to fight rising inflation or to help mitigate foreign vulnerabilities. As for composition, governments face a trade-off when they decide between targeting stimulus at the poor, where the probability is higher that the spending will go all the way through and have a stronger economic impact; funding capital investments, which can generate jobs and help boost longer-term growth; or providing tax cuts, which can spur firms to hire more workers or purchase new capital equipment.

What was the impact of GST on Real Estate?

The impact of GST on the real estate industry is that real estate developers are allowed to claim the input tax credit (ITC) for building materials such as labour, cement, bricks, etc. With a uniform rate of tax, developers would get an input credit for GST paid for services and goods purchased by them, thereby reducing their costs, and which could be passed onto to the buyers. Under the GST, all other indirect taxes would be included, and the buyer would pay uniform 12% tax on real estate purchases, excluding stamp duty. The multiple taxes include Service Tax, Consumption Tax, VAT, Stamp Duty, and several others, in addition to what a customer has to pay on an unbuilt property itself.

Cuts were taken to ensure that property became more affordable to every ordinary person, with a view to reaching the target of housing for all by 2022. Under the new tax regime from April 1, 2019, effective tax rates on properties under construction were reduced, the GST rate on residential properties which were not a part of affordable housing segments was reduced to 5 percent with no ITC available, while affordable housing segments were to be levied at 1% with no ITC. With reduction, GST on under-construction affordable housing units was at 1 %, whereas that on non-affordable projects was at 5 %, without input tax credit. The GST for construction costs of properties is reduced because the multiple taxes are blended because of the input tax credit.

There are several taxes like Excise Duty, VAT, Customs Duty, Entry Tax, and other input taxes. The developer was allowed to charge taxes to customers, and to deduct their taxes from purchase orders and labour contracts paid to their suppliers, thereby actually reducing their construction costs by as much as input taxes were allowed. The cost of construction to the developer was reduced by implementing the GST, since GST absorbed several other taxes into one single tax. The effect of GST was that buyers chose pre-existing properties because it proved to be cost-effective, since construction costs of properties under construction also increased.

As the cost of construction and under-construction properties is rising, the direct impact of GST was for home buyers to favour the pre-built properties because they proved to be more affordable. The issue of trickle-down effects had to be addressed, which is a tax-on-tax situation which puts financial burdens on the developer and the home buyer while the building and buying process is going on. Some of the taxes which were payable by real estate developers prior to GST including value added tax (VAT), central excise, entry tax, LBT, octroi, service tax, etc.

Know About The Gstn – Goods And Service Tax Network In India – Functions Of Gst Network

GSTN – GSTN stands for GST Network, which is an organisation which provides IT Infrastructure for GST portal. GSTN, GSTN provides IT infrastructure and services to central and state governments, taxpayers, and other stakeholders for implementing GST in India. As per GSTNs website, Goods and Services Tax Network (GSTN) is a Section 8 (under the new Companies Act, non-profit companies are subject to Section 8) non-government, private limited company. Goods and Services Tax Network (GSTN) is a unique, complex IT venture which has established a communication and engagement channel among the taxpayers, central and different state governments, and other stakeholders.

The GSTNs uniqueness lies in its endeavour to serve as an unified interface for taxpayers and governments, together with shared, shared technological infrastructure across central and state governments. GSTN is basically a front-end for the IT ecosystem of the taxpayers and hence forms the online communication channel for government and the corporate taxpayers. As mentioned above, the GST Network is the online portal which forms an interface between a taxpayer seeking GST registration under the new taxation laws and the government. The parliamentary (Rajya Sabha) special committee has suggested, A corporation is the complete infrastructure network at the backend to manage the GST tax data and reports. Here is everything that you need to know about the GSTN, an organization that is in charge of developing IT infrastructure for GST System in India. Goods and Service Tax Network (GSTN) has built the GST Indirect Taxation Platform, which helps Indian taxpayers to prepare, submit returns, pay their indirect tax liabilities, and perform other compliances. Facilitation, Implementation, and Setting Standards to Provide Services to the Taxpayer, Central & State Governments, and Other Stakeholders Through One Common GST Portal. Implementation of user-friendly GST Ecosystem through partnerships with multiple agencies. To provide unified services for enrolment, returns, and payments for the taxpayer. A Common GST System would ensure connectivity with all the state/UT commercial tax departments, central tax authorities, taxpayers, banks, and other stakeholders. The Government will utilize GST Portal for tracking each and every financial transaction, as well as providing taxpayers with all services — from registration, filing of taxes, to maintaining all tax details. The GST portal is used by the government to track every good transaction as well as services within India, and provides taxpayers a robust system for meeting all the services related needs under GST.

The authorized capital for the GST Network is Rs10 crore (US$1.6 million), with 49% share divided evenly among Central and state governments, while rest is held with private banks. The vision for GST Network is to strengthen entrusted national information utility (NIU), presenting strong IT resolve to ensure effective functioning of GST regime.

What is Cash Flow Statement? It’s Uses.

Because a cash flow statement sheds light on different areas in which the company uses or receives money, it is a crucial financial statement to consider when valuing the business and understanding the operations of a company. Based on a cash flow statement, you can look at how much cash is generated by various types of activities, then make business decisions based on the financial statements you analyze.

Now that you have an understanding of what constitutes the cash flow statement and why it is important to your financial analysis, take a look at the two common methods used for calculating and producing the cash flow statements operating activities section. What that means is, according to commonly accepted accounting principles, if you are preparing the operating activities cash flow using the direct method, then you should also prepare the operating activities cash flow using the indirect method in a companion statement. As noted above, net income is such a crucial accounting concept even when using the indirect method that a supplemental statement is required that reconciles net income reported in the Profit and Loss Statement to Cash flow from operating activities. The cash flow statement specifies the sources of cash, along with uses of cash, in the period being reported, leading the financial statements user to the periods net cash flow, a method used for determining profitability by measuring the difference between the cash inflows and outflows from the business.

In financial accounting, the cash flow statement, also known as a cash flow statement, is the financial statement showing how changes in the accounts on a balance sheet and income impact cash and cash equivalents, breaking the analysis into operational, investment, and funding activities. A cash flow statement can show which changes are needed to the companys financial position, and can assist management in prioritizing critical activities, such as managing long-term debt. Whether you are an employee, business owner, entrepreneur, or investor, knowing how to read and understand a cash flow statement can allow you to pull out critical data on the companys financial condition. A cash flow statement reports the movements of money in a business over the course of a period, breaking it down into three areas: Cash flows in through the businesss operations, investments, and funding activities. It shows cash flows from all investment activities, which typically involve purchases or sales of long-term assets, such as plants, real estate, investment securities, etc. For example, if The Learning Company purchases a piece of machinery, its cash flow statement will record that activity as an outflow of cash from investing activities. The cash flow statement helps a business to compare its cash budgetCash BudgetCash Budget refers to estimates of the inflows and outflows made by the companys management during a given period, in order to evaluate if the company has sufficient cash & equivalents to cover the operations needs for the future. Read More to the cash requirements of the companys operations.

What Is Hsn Code? How Does Hsn Code Work

The HSN code stands for the Harmonic System of Nomenclature, which was implemented by WCO (World Customs Organization) in 1988.

HSN, or HS (Harmonic System of Product Description and Coding), is an international, multipurpose product nomenclature developed by the World Customs Organization (WCO). HSN is an internationally recognized code system which allows for product classification worldwide. The main goal of the HSN coding is to classify products in a systematic way, it can also be used to collect all data and sort out any problems there are.

This system has been introduced to systematically classify goods worldwide. Almost all goods in India are classified using HSN class codes, facilitating use of HSN numbers to calculate the Goods and Services Tax (GST). HSN codes and SAC codes are used for classification of goods and services in GST regime. These HSNs and SAC codes help businesses identify correct applicable GST rates for a particular goods and services. Moreover, these HSN and SAC codes were used on invoices and records, so that it is easy to identify goods and services offered. A SAC code is similar to the way the nomenclature works in an HSN, but is used for services. On the tax bill, minimum, you need to display the HSN codes in the form of 4 digits for goods and services. In the case of import/export, eight-digit HSN codes should be mandatory, since the GST is expected to be compliant with international standards and practices. Those who had a turnover up to Rs5 crore in the preceding financial year will also be required to provide HSN codes of four digits in B2B invoices. The HSN stands for Harmonised System of Nomenclature codes. Businesses with turnover between Rs 1.5 to Rs 5 crore are using two-digit HSN codes for their goods.The HSN codes consist of 21 sections. HSN codes for services and products are mostly used for determining tax slabs of each good or service, precisely.

HSN codes eliminate the need for data inputs on a product, making it easier to file a GST return. Manufacturers, importers, and exporters have been using HSN codes for some time. With the shift of India to GST came a shift towards online taxation and the adoption of HSN codes for classifying goods for taxation. All goods and services that are meant for GST in India are classified with the help of an HSN (Harmonised System of Nomenclature) code and with SACs (Service Accounting Codes) code, which would help remove barriers/hindrances to international trade. This impressive adoption rate may continue to be translated into benefits from HSN codes including- Collection of data on international trade, Provision of a rational basis for customs duties, Uniform Classification, Classification of approximately 98% of international traded goods under the HSN. When the merchant issues a bill of sale of goods and services, it is necessary for him to quote HSN/SAC codes on his bill, based on his businesss overall turnover.