What is an HSN Code?
HSN stands for Harmonized System of Nomenclature, a globally standardized system developed by the World Customs Organization (WCO) for classifying traded products. In India, HSN codes are used under GST to classify goods and determine the applicable tax rate. For services, the equivalent classification is SAC (Services Accounting Code).
HSN Code Structure
HSN codes follow a hierarchical structure with varying levels of detail:
| Level | Digits | Description | Example |
|---|---|---|---|
| Chapter | 2 digits | Broad category | 09 – Coffee, Tea, Spices |
| Heading | 4 digits | Sub-category | 0902 – Tea |
| Sub-heading | 6 digits | Specific product group | 090210 – Green tea (not fermented) |
| Tariff item | 8 digits | Country-specific classification | 09021010 – Green tea in packets ≤ 3 kg |
HSN Digit Requirements Under GST
The number of HSN digits required on invoices depends on your aggregate annual turnover:
- Turnover up to ₹5 crore: 4-digit HSN code mandatory on B2B invoices (optional for B2C)
- Turnover above ₹5 crore: 6-digit HSN code mandatory on all invoices
For filing GSTR-1, taxpayers must report HSN-wise summary of outward supplies in Table 12.
How to Find the Right HSN Code
Method 1: GST Portal Search
- Visit the GST portal (gst.gov.in)
- Navigate to "Services" → "User Services" → "Search HSN/SAC Code"
- Enter a keyword describing your product (e.g., "cotton shirt")
- Browse the results to find the most specific match
Method 2: CBIC Website
The Central Board of Indirect Taxes and Customs (CBIC) publishes the complete HSN rate schedule. You can download the notification and search for your product category.
Method 3: By Chapter
If you know the broad category of your product, start with the chapter number and drill down:
- Chapters 1-24: Food products, beverages, tobacco
- Chapters 25-40: Mineral products, chemicals, plastics
- Chapters 41-63: Leather, textiles, garments
- Chapters 64-71: Footwear, headgear, precious stones
- Chapters 72-83: Metals and metal products
- Chapters 84-85: Machinery and electrical equipment
- Chapters 86-89: Vehicles and transport equipment
- Chapters 90-97: Instruments, clocks, furniture, miscellaneous
Common HSN Codes with GST Rates
| Product | HSN Code | GST Rate |
|---|---|---|
| Rice (other than pre-packaged) | 1006 | 0% |
| Milk and cream | 0401 | 0% |
| Cotton T-shirts | 6109 | 5% |
| Laptops and computers | 8471 | 18% |
| Mobile phones | 8517 | 18% |
| Air conditioners | 8415 | 28% |
Tips for Correct HSN Classification
- Be specific – Always use the most detailed HSN code that matches your product
- Check notifications – Some products have special rates under specific notifications
- Verify periodically – GST Council may reclassify products during rate revisions
- Maintain consistency – Use the same HSN code across all invoices for the same product
HSN Code Integration with FileWithUs.ai
FileWithUs.ai includes a built-in HSN code search and auto-suggestion feature. When creating invoices, simply start typing your product name and the system suggests the correct HSN code along with the applicable GST rate — saving time and eliminating classification errors.
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