Model Number

A model number is used to differentiate one product in a series from another. Model
numbers are commonly used in many different types of product manufacture.
Letters are sometimes used along with numbers in the coding.

There is no standard format for how the letters and numbers are used; companies
are free to decide how they want to use them.

A model number can indicate the features present in a product. Higher model
numbers often indicate the addition of new features and improvements to a product.

Model numbers can help a consumer differentiate between two products made by
the same manufacturer that look similar.
 HS CODE
What is HS Code?
The Harmonized Commodity Description and Coding System, also
known as the Harmonized System (HS) of tariff nomenclature is an
internationally standardized system of names and numbers to classify
traded products.

HS is organized logically by economic activity or component material, The

HS is organized into 21 sections, which are subdivided into 96 chapters.

The HS is organized into 21 sections, which are subdivided into 96

chapters.

India, a member of WCO(World Customs Organization) since 1971, has

been using HSN codes since 1986 to classify commodities for Customs
and Central Excise. Customs and Central Excise added two more digits to
make the codes more precise, resulting in an eight-digit classification.
 Why it is important?

HS codes identify the rates of duty and tax that will be assessed, prohibitions or
restrictions that might be imposed, and permits or licenses that might be required.
In many countries, importers are required to report HS codes to Customs before
their goods are loaded for export.

It is extensively used by governments, international organizations and the private

sector for many other purposes such as internal taxes, trade policies, monitoring of
controlled goods, rules of origin, freight tariffs, transport statistics, price
monitoring, quota controls, compilation of national accounts, and economic
research and analysis.
 HS codes for GST in INDIA
Under GST, the majority of dealers will need to adopt two-, four-, or eight-
digit HSN codes for their commodities, depending on their turnover the
year prior.

Dealers with turnover of less than Rs 1.5 crores will not be required to
adopt HSN codes for their commodities.

Dealers with turnover between Rs 1.5 crores and Rs 5 crores shall be

required to use two-digit HSN codes for their commodities.

Dealers with turnover equal to Rs 5 crores and above shall be required to

use four-digit HSN codes for their commodities.

In the case of imports/exports, HSN codes of eight digits shall be

compulsory, as GST has to be compatible with international standards and
practices.
 Along with Indias move to GST come moves to an online taxation system
and to HSN codes for classifying goods for taxation. Its all designed to
bring about more uniform taxation as well as more ease of doing business.
HSN codes will now be used in filing returns, on invoices, etc., rather than
written descriptions.
 HSN sections

Section I (Chapters 1 to 5) live animals and animal products

Section II (Chapters 6 to 14) vegetable products
Section III (Chapter 15) animal or vegetable fats and oils
Section IV (Chapters 16 to 24) beverages, spirits, vinegar, and tobacco
Section V (Chapters 25 to 27) mineral products
Section VI (Chapters 28 to 38) chemical and para-chemical products
Section VII (Chapters 39 to 40) plastics and rubber, and articles thereof
Section VIII (Chapters 41 to 43) certain animal hides and skins
Section IX (Chapters 44 to 46) -wood, cork, manufactures of straw, and articles thereof
Section X (Chapters 47 to 49) pulp of wood, paper, paperboard, and printed products
Section XI (Chapters 50 to 63) textiles and textile articles
Section XII (Chapters 64 to 67) footwear, headgear, umbrellas, walking sticks,
prepared feathers, artificial flowers, and articles of human hair
 Section XIII (Chapters 68 to 70) articles made of minerals, stone, plaster, cement,
etc., and ceramic and glass products
Section XIV (Chapter 71) precious metals and stones
Section XV (Chapters 72 to 83) base metals and articles thereof (Note: Chapter 77 is
reserved for future use)
Section XVI (Chapters 84 to 85) machinery and mechanical appliances, electrical
equipment, sound recorders and reproducers, television image and sound recorders
and reproducers, and parts and accessories of such articles
Section XVII (Chapters 86 to 89) vehicles, aircraft, vessels, and associated
transport equipment
Section XVIII (Chapters 90 to 92) optical, photographic, cinematographic, and
musical apparatus and equipment; measuring, medical, surgical, and other
instruments; and clocks and watches
Section XIX (Chapter 93) arms and ammunitions
Section XX (Chapters 94 to 96) miscellaneous manufactured articles
Section XXI (Chapters 97 to 99) arts, collectors pieces, and antiques (Note: Chapter
99 is reserved for national use)
Sample Invoice
 Stock Keeping Unit(SKU)

A stock keeping unit (SKU) is a product and service identification code for a store
or product, often portrayed as a machine-readable bar code that helps track the item
for inventory.

A stock keeping unit (SKU) does not need to be assigned to physical products in
inventory. Often, SKUs are applied to intangible but billable products, such as units
of repair time or warranties.

SKUs are often used in catalogs, physical and online retail stores, warehouses and
product fulfillment centers. Each business creates a different SKU for its goods and
services.

Stores use SKUs for determining which items are in stock and which need
reordering, as a method of growing profits.
 Why it is important

Businesses attach SKUs to different products in one category so that shoppers may
compare characteristics of varying items in that group.

For example, Amazon.com suggests products related to items in shoppers

electronic carts based on SKUs of the products being purchased. When a shopper
buys a specific DVD, Amazon displays similar movies purchased by other
customers, based on SKU information.