HSN Code Complete Guide: Find & Use Codes for GST
HSN (Harmonized System of Nomenclature) codes are mandatory on GST invoices. Understanding HSN structure, finding correct codes, and compliance requirements is essential for accurate GST filing.
What is HSN Code?
HSN is a 6-digit internationally standardized system of names and numbers to classify traded products. Developed by World Customs Organization (WCO), it's used by 200+ countries for uniform product classification.
📊 Purpose of HSN
- Uniform classification worldwide
- Determines applicable GST rate
- Simplifies tax structure
- Facilitates international trade
HSN Code Structure
Example: HSN 8517 (Telephones)
85 - Chapter (Electrical machinery)
8517 - Heading (Telephones, mobiles)
851712 - 6-digit (Mobile phones)
85171200 - 8-digit India-specific (further classification)
Digit Levels Explained
| Digits | Level | Example |
|---|---|---|
| 2 digits | Chapter | 85 = Electrical machinery |
| 4 digits | Heading | 8517 = Telephones |
| 6 digits | Subheading | 851712 = Mobile phones |
| 8 digits | Tariff item (India) | 85171200 = Specific type |
When is HSN Mandatory on Invoices?
| Turnover | HSN Digits Required |
|---|---|
| Up to ₹5 Crore | 4-digit HSN |
| ₹5 Crore and above | 6-digit HSN (or 8-digit where available) |
| Exports | 8-digit HSN mandatory |
⚠️ Composition Dealers
Composition scheme dealers are EXEMPT from mentioning HSN codes on invoices (but must mention in GSTR-4).
How to Find HSN Code for Your Product
Method 1: Official GST Portal
- Visit gst.gov.in
- Services → User Services → Search HSN Code
- Enter product description
- System shows matching HSN codes
Method 2: Use Our HSN Finder
- Search by product name or HSN code
- Get HSN code + GST rate instantly
- Verify and use on invoices
Find HSN Code for Your Products
Search 21,000+ HSN codes with GST rates. Free and instant results.
Search HSN Codes →SAC Code (For Services)
Services use SAC (Services Accounting Code) instead of HSN:
- 5-digit or 6-digit code
- Structure similar to HSN
- Mandatory on service invoices
Common SAC Codes
| Service | SAC Code | GST Rate |
|---|---|---|
| IT Services | 998314 | 18% |
| Legal Services | 998212 | 18% |
| CA Services | 998211 | 18% |
| Consulting | 998313 | 18% |
Popular HSN Codes Examples
| Product | HSN Code | GST Rate |
|---|---|---|
| Mobile phones | 8517 | 12% |
| Laptops/Computers | 8471 | 18% |
| Rice | 1006 | 0% |
| Wheat flour | 1101 | 0% |
| Tea | 0902 | 5% |
| Coffee | 0901 | 5% |
| Soap | 3401 | 18% |
| Toothpaste | 3306 | 18% |
| Bicycles | 8712 | 12% |
| Cars | 8703 | 28% + cess |
Reporting HSN in GST Returns
GSTR-1 (Sales Return)
HSN-wise summary must be provided in Table 12:
- HSN code
- Description
- UQC (Unit of Quantity Code)
- Total quantity
- Total value
- Total taxable value
- IGST/CGST/SGST amounts
GSTR-3B
No HSN-wise details required. Only summary amounts.
Common HSN Code Mistakes
- Wrong HSN selection: Similar products can have different HSN codes and GST rates
- Insufficient digits: Using 2-digit when 4-digit required (₹5Cr turnover)
- Not updating codes: HSN codes occasionally change - stay updated
- Mixing HSN & SAC: Use HSN for goods, SAC for services
- No HSN on invoice: Mandatory for most taxpayers - invites notices
HSN Chapters Overview
HSN is organized into 21 sections and 99 chapters:
| Chapters | Category |
|---|---|
| 01-05 | Live animals, animal products |
| 06-15 | Vegetable products |
| 16-24 | Prepared foodstuffs, beverages, tobacco |
| 25-27 | Mineral products |
| 28-38 | Chemicals, plastics |
| 39-40 | Plastics and rubber |
| 41-43 | Hides, skins, leather |
| 44-49 | Wood, paper products |
| 50-63 | Textiles |
| 84-85 | Machinery, electrical equipment |
| 86-89 | Vehicles, aircraft, vessels |
Penalties for Wrong HSN Code
- Wrong GST rate charged = Tax short payment + Interest @ 18% p.a.
- Penalty for non-compliance = Up to ₹25,000
- Buyer can't claim ITC if wrong HSN/rate on invoice
💡 Pro Tip
Always verify HSN code from official sources. When in doubt, consult the GST portal or a tax professional. Wrong classification can lead to tax disputes!
Frequently Asked Questions
Can one product have multiple HSN codes?
No. Each product should be classified under the most specific HSN code that describes it. If confused, use the HSN code that best matches the product's primary use.
What if HSN code is not mentioned on invoice?
Invoice is still valid but may attract penalty. Buyer can still claim ITC but best practice is to include HSN always.
Do imported goods have different HSN codes?
No. HSN codes are the same for domestic and imported goods. That's the beauty of harmonization!
Where to check if my HSN code changed?
Check GST rate notifications on gst.gov.in or use our HSN Finder which has the latest updates.