Q. With reference to the Harmonised System of Nomenclature (HSN) code, consider the following statements:
1.The HSN code is a system used to classify and categorize services offered by businesses in various industries.
2.Each HSN code represents a specific product or commodity.
3.In India, the HSN code is also used for the Goods and Services Tax (GST) system to classify goods for taxation purposes.
Which of the statements given above are correct?

[A] 1 and 2 only

[B] 2 and 3 only

[C] 1 and 3 only

[D] 1, 2 and 3

Answer: B
Notes:

Explanation –

Statement 1 is incorrect. HSN code is an internationally recognized system used to classify and categorize traded goods. It was developed by the World Customs Organization (WCO) to create a unified system for the classification of products in international trade.

Statements 2 and 3 are correct. Each HSN code represents a specific product or commodity. In India, the HSN code is also used for the Goods and Services Tax (GST) system to classify goods for taxation purposes.

Source: ForumIAS