What is HSN Code?
The Harmonized System of Nomenclature or HSN has been developed by the WCO or World Customs Organization for giving a code to the various goods around the globe in a proper manner for a taxation system for finding different types of products. HSN has more than five thousand different products, and this was initiated in the year 1988. It is quite widespread and has been adopted in greater than two hundred countries for proper classification, using the base for various tariffs and also for the collection of the international trade statistics.
How does HSN code work?
HSN code has greater than five thousand different commodity groups each of them was identified by a 6 digit code that is arranged in a logical and legal structure. HSN code is well supported by some rules to achieve a uniform structure.
GST HSN Code Example and Format
The main structure of HSN has 21 Sections along with 99 Chapters, plus a total of 1,244 headings which have 5,224 subheadings. So every Section has various Chapters and each of the Chapters has various Headings. Further, each Heading has smaller Subheadings. While the Chapters and Sections have different products or goods, the Subheading and Heading denote these products in some detail.
Why is the GST HSN Code Important?
This HSN code is generally accepted across the world to classify different products which makes it easy for the HSN Code Finder for identifying various goods for foreign and domestic trade. It is also used in gathering data for understanding domestic and foreign in a better way. So, the HSN code aids the government in choosing different macroeconomic policies which are related to the trade practices of different goods..
Why is the GST HSN Code Important?
The GST HSN Code is relevant for all businesses involved in the sale, purchase, import, export, or manufacture of goods. It helps ensure accurate classification of products, correct GST rate application, and seamless tax compliance.
The following entities should use HSN codes:
- Manufacturers for classifying products and determining applicable GST rates.
- Traders and wholesalers for accurate invoicing and GST return filing.
- Retail businesses and e-commerce sellers for compliant tax reporting.
- Importers and exporters for customs clearance and international trade documentation.
- MSMEs and large enterprises registered under GST.
- Accountants and tax professionals responsible for GST compliance and reporting.
Using the correct HSN code helps businesses avoid classification errors, claim input tax credit accurately, and maintain compliance with GST regulations.
Why is HSN important under GST?
HSN (Harmonized System of Nomenclature) plays a vital role under the GST framework by providing a standardised classification system for goods. It helps businesses identify the correct GST rate applicable to products, ensuring accurate tax calculation and compliance. The use of HSN codes reduces classification disputes, simplifies GST return filing, and enables uniform reporting across industries. Since HSN is recognised internationally, it also facilitates smoother import and export transactions by maintaining consistency in product classification across countries. By adopting HSN codes, businesses can improve invoice accuracy, claim input tax credit correctly, and avoid penalties arising from incorrect tax reporting
Services Accounting Code (SAC) in GST
Like HSN code finders, codes meant for services are named SAC or Services Accounting Code. As goods, services too are classified evenly for taxation, measurement, and recognition purposes.
The Central Board of Indirect Tax issues SAC to classify each service. These codes are used when generating invoices against the services rendered.
Format of SAC
The SAC code comprises a unique 6-digit number that includes two numbers each for Heading, Chapter, and Subheading.
One can understand this with the help of an example given below:
SAC code meant for certification services and Legal documentation concerning copyrights patents, copyrights, and other intellectual property rights is 998213
The first two digits are the same for all services i.e. 99
The next two digits (82) stand for nature of service, in this case, legal services – Heading
The last two digits (13) stand for the detailed nature of service, i.e., legal documentation for patents – Subheading.
Declaration of HSN Code for Goods and Services
Under GST, businesses are required to mention HSN codes for goods and SAC codes for services on tax invoices and GST returns. The number of digits required depends on turnover and transaction type. Proper declaration ensures correct GST reporting, reduces classification disputes, and facilitates smooth tax compliance.
| Aggregate Annual Turnover | HSN Code Requirement |
| Up to ₹5 crore | 4-digit HSN code |
| Above ₹5 crore | 6-digit HSN code |
| Imports and Exports | 8-digit HSN code |
GST HSN Finder – Search HSN & SAC Codes
The GST HSN Finder is a useful tool that helps businesses, traders, and professionals identify the correct HSN code for goods and SAC code for services. Finding the right code is essential for applying the correct GST rate, generating compliant invoices, and filing accurate GST returns.
Steps to Search HSN or SAC Codes
- Visit the GST portal or a trusted HSN code database.
- Enter the product or service name in the search field.
- Review the matching HSN or SAC codes displayed.
- Verify the product description and GST rate associated with the code.
- Select the most appropriate code based on the nature of your goods or services.
- Use the identified code in invoices, e-way bills, and GST returns.
Using the correct HSN or SAC code helps minimise errors, avoid notices from tax authorities, and ensure seamless GST compliance.
How can I find my product in HSN list and its relevant HSN Code?
You are required to follow the following steps in order to get the HSN codes for GST:
- Step 1: Firstly, you need to visit the homepage of the GST portal – https://services.gst.gov.in/services/searchhsnsac and then enter the login details like Username and Password.
- Step 2: Then you have to click on Services > User Services > Search HSN/SAC code. Then the HSN checkbox is required to be clicked.
- Step 3: Then from the Tax-Type drop-down list you have to select the tax type that you are searching for.
- Step 4: Now, the HSN code has to be entered or the name of the chapter whose rates need to be looked for under the “Search HSN Chapter by Name or Code.”
- Step 5: Now, you need to enter the HSN code of the goods whose tax rates are looked for under the “Search HSN Code” category. Then the appropriate dates from the calendar have to be selected in the “Effective Period” category.
- Step 6: Once all the details are filled in the “Search” option needs to be clicked.
While searching for SGST from the Tax Type list, you are also required to select the state for which you wish to check the tax rate.
For knowing SAC codes, you have to follow the steps listed below:
- Step 1: First of all the SAC checkbox needs to be clicked. Then you have to search the tax type you are searching for in the Tax-Type drop-down list.
- Step 2: Select the tax type you are searching for in the Tax-Type drop-down list.
- Step 3: The next step is entering the Service Classification Code (SAC) whose rates you are searching under the “Service by Name or Code.”
- Step 4: Further the appropriate dates from the calendar need to be selected in the “Effective Period” category.
- Step 5: Last but not least the “Search” option needs to be clicked and the details will be visible on the screen.
What is GST HSN Code in India?
If one is importing and exporting it is essential for all the goods for having all eight digits of the HSN code under the GST.
- Chapter: There are a total of 99 chapters under the module of HSN.
- Heading: There are 1244 headings under the chapters.
- Subheading: Under the headings, there are 5224 subheadings.
Under the guidelines of WCO, the first 6 digits of the HSN code cannot be changed but the remaining four can be easily changed as it includes National tariff and Regional tariff which are changed less frequently by the customs authority of any country.
HSN code list section-wise
| Sections | HSN Code List |
| Section 1 | Animal products and live animals |
| Section 2 | Products of vegetable |
| Section 3 | Vegetable or animal oils and fats and its products of cleavage, edible fats prepared, vegetable or animal waxes |
| Section 4 | Prepared foodstuffs, spirits, beverages, tobacco, vinegar, and tobacco substitutes that are manufactured |
| Section 5 | Mineral products |
| Section 6 | Product of allied or the chemicals industries |
| Section 7 | Articles and plastics thereof, articles and rubber thereof |
| Section 8 | Skins, raw hides, fur skins, leather, and articles, harness, saddlery handbags, travel goods, animal gut articles and similar containers, (other than silkworm gut) |
| Section 9 | Articles of wood, wood, charcoal wood, articles of cork, cork, straw manufacturers, of esparto, plaiting materials, wickerwork and basketwork |
| Section 10 | Other fibrous of the cellulosic material, pulp of wood, (waste and scrap) recovered paper and paperboard, others articles |
| Section 11 | Textile and textile articles |
| Section 12 | Headgear, footwear, sun umbrellas, umbrellas, walking sticks, seat sticks, riding-crops, whips, parts, articles made, prepared feathers and others artificial flowers, human hair articles |
| Section 13 | Articles of plaster, stone, asbestos, cement, similar materials, mica,, glass, ceramic products and others glassware |
| Section 14 | Natural or cultured pearls, precious or semi-precious stones, precious metals, metal clad with precious metal, and articles thereof, imitation jewellery, coins |
| Section 15 | Articles or base metals |
| Section 16 | Mechanical appliances, machinery, parts, electrical equipment, sound reproducers, recorders, souch recorders, television image and reproducers, its parts and others accessories of article |
| Section 17 | Aircraft, vehicles, associated transport equipment and vessels |
| Section 18 | Photographic, optical, measuring, cinematographic, precision, checking, surgical or medical instruments and its apparatus, watches and clocks, parts, musical instruments, and its accessories |
| Section 19 | Ammunition, arms and its parts & accessories |
| Section 20 | Manufactured articles and miscellaneous |
| Section 21 | Collectors’ pieces, art works, and antiques |
HSN code chapter wise list
Below mentioned is the HSN Chapter code list:
| Chapter Number | Description |
| Chapter 1 | Poultry and live animals |
| Chapter 2 | Edible offals and animal meat |
| Chapter 3 | Fillets, fish, and some animals meat (aquatic ) |
| Chapter 4 | Eggs, honey, and other dairy products |
| Chapter 5 | Inedible products of animal (unspecified) |
| Chapter 6 | Live trees, flowers, and plants |
| Chapter 7 | Vegetables |
| Chapter 8 | Fruits |
| Chapter 9 | Coffee, tea and spices |
| Chapter 10 | Grains and cereals |
| Chapter 11 | Milling industry products |
| Chapter 12 | Medicinal plants, fruits and seeds |
| Chapter 13 | Gums, lac, vegetable SAP, resins and extracts |
| Chapter 14 | Vegetable materials and products (unspecified) |
| Chapter 15 | Oils, vegetable, fats, and animal products |
| Chapter 16 | Fish and and other vertebrates meat (preserved/prepared) |
| Chapter 17 | Sugar confectionery, sugar, and bubble gums |
| Chapter 18 | Cocoa and its products |
| Chapter 19 | Pastry, bread, pizza, waffles |
| Chapter 20 | Juices, fruits, jellies and jams |
| Chapter 21 | Coffee, tea and some edible preparations |
| Chapter 22 | Nonalcoholic beverages, vinegar and spirit |
| Chapter 23 | Meals, residual products of starch, and pellets |
| Chapter 24 | Tobacco and its products |
| Chapter 25 | Marbles and salts |
| Chapter 26 | Concentrates and mineral ores |
| Chapter 27 | Petroleum, coal and other fossil fuels |
| Chapter 28 | Inorganic chemicals and gases |
| Chapter 29 | Hydrocarbons |
| Chapter 30 | Pharma and blood products |
| Chapter 31 | Unspecified products and fertilizers |
| Chapter 32 | Tanning and colouring products |
| Chapter 33 | Oils and cosmetics |
| Chapter 34 | Waxes and soaps |
| Chapter 35 | Enzymes and glues |
| Chapter 36 | Industrial fireworks and explosives |
| Chapter 37 | Cinematographic and photographic goods |
| Chapter 38 | Clinical and chemicals wastes |
| Chapter 39 | Plastic products |
| Chapter 40 | Rubber and its products |
| Chapter 41 | Rawhides and skins |
| Chapter 42 | Leather products like wallets, bags, and handbags |
| Chapter 43 | Artificial and raw fur products |
| Chapter 44 | Wood charcoal and wood products |
| Chapter 45 | Shuttlecock cork and natural |
| Chapter 46 | Basketware, and plaiting materials, manufacturers straw, and wickerwork |
| Chapter 47 | Wood pulp |
| Chapter 48 | Paperboard, paper and newsprint |
| Chapter 49 | Newspapers, printed books, and postal goods |
| Chapter 50 | Silk |
| Chapter 51 | Fine, coarse animal hair, wool, horsehair yarn and woven fabric |
| Chapter 52 | Cotton |
| Chapter 53 | Fabrics woven of paper yarn, vegetable textile fibres, and paper yarn |
| Chapter 54 | Manmade filaments |
| Chapter 55 | Manmade fibres staple |
| Chapter 56 | Ropes, cables, nonwovens, felt, wadding, cordage, twine, special yarns, and articles thereof |
| Chapter 57 | Textile floor coverings, carpets and others |
| Chapter 58 | Lace, trimmings, tapestries, tufted textile fabrics and embroidery, |
| Chapter 59 | Laminated and coated fabrics textile, special fabrics woven |
| Chapter 60 | Crocheted fabrics or knitted |
| Chapter 61 | Clothing accessories which is either knitted or crochet and different articles of any apparel |
| Chapter 62 | Clothing accessories which is neither knitted nor crochet and different articles of any apparel |
| Chapter 63 | Sets, worn clothing worn textile articles, rags, and other textile articles |
| Chapter 64 | Gaiters, parts of these articles and footwear |
| Chapter 65 | Headgear parts |
| Chapter 66 | Walking stick, umbrellas, and accessories |
| Chapter 67 | Artificial flowers, wigs, false beards |
| Chapter 68 | Plaster, mica cement, and other construction materials |
| Chapter 69 | Ceramic products and bricks |
| Chapter 70 | All glassware products including |
| Chapter 71 | Silver, gold, pearls, diamond and precious metals |
| Chapter 72 | Non alloy products and iron rods, iron material and steel, |
| Chapter 73 | Iron tube, railway tracks, nails, containers, sanitary wares and needles |
| Chapter 74 | Copper alloy products and copper products |
| Chapter 75 | Nickel alloy products and nickel |
| Chapter 76 | All types of aluminium products |
| Chapter 77 | (Empty category and reserved for future use) |
| Chapter 78 | Lead foils, lead sheets and lead |
| Chapter 79 | Zinc dust, Zinc sheets and Zinc bars |
| Chapter 80 | tin bars, tin, and profiles |
| Chapter 81 | Magnesium, bismuth, cobalt, and base metals |
| Chapter 82 | Cutlery, agricultural tools, knives and razors |
| Chapter 83 | Bells, padlocks, base metal products and safe deposit lockers |
| Chapter 84 | Machinery and industrial tools |
| Chapter 85 | Electronic and electrical goods |
| Chapter 86 | Locomotives and railway machinery |
| Chapter 87 | Motor vehicles |
| Chapter 88 | Satellites, aircraft, parachute |
| Chapter 89 | Cargo vessels, ships, boats, |
| Chapter 90 | Medical equipment, artificial organs, photographic, monitoring systems, optical fibres, lens, and cinematographic accessories |
| Chapter 91 | Clocks and watches |
| Chapter 92 | All types of musical instruments |
| Chapter 93 | Military weapons and arms |
| Chapter 94 | Household products, furniture and lighting |
| Chapter 95 | Sports goods, electronic toys and consoles for gaming |
| Chapter 96 | Pencils, pens, smoking pipes and educational equipment |
| Chapter 97 | Antiques and arts |
| Chapter 98 | Laboratory chemical, import projects and passenger baggage |
| Chapter 99 | Services |
Conclusion
HSN codes play a crucial role in GST compliance by ensuring accurate classification of goods and correct tax calculation. Whether you are a manufacturer, trader, exporter, or service provider, using the right HSN or SAC code helps avoid errors, simplifies GST return filing, and improves invoice accuracy. Businesses should regularly verify HSN classifications and stay updated with GST notifications to maintain compliance and prevent penalties.
FAQs
- What is the difference between HSN and SAC codes?
HSN (Harmonized System of Nomenclature) codes are used to classify goods, while SAC (Services Accounting Code) codes are used to classify services under GST. HSN applies to products, whereas SAC applies to services provided by businesses and professionals.
- Is HSN code mandatory under GST?
Yes, HSN codes are mandatory under GST for most registered businesses. The number of HSN digits required depends on the taxpayer’s turnover and applicable GST regulations.
- How can I find the correct HSN code for my product?
You can find the correct HSN code by using the GST portal’s HSN/SAC search tool or referring to the official HSN code list. Search using the product name and match the description carefully before selecting the code.
- How many digits are there in an HSN code?
HSN codes can contain 2, 4, 6, or 8 digits depending on the level of classification. In India, GST reporting generally requires the use of 4, 6, or 8-digit HSN codes based on business turnover and transaction type.
- Who issues HSN codes in India?
HSN codes are based on the global classification system developed by the World Customs Organization (WCO). In India, their implementation and usage under GST are governed by the Central Board of Indirect Taxes and Customs (CBIC).
- What happens if the wrong HSN code is used?
Using an incorrect HSN code can lead to the application of the wrong GST rate, resulting in tax mismatches, notices from tax authorities, penalties, and compliance issues. Businesses should always verify the correct classification before invoicing.
- Are HSN codes required on GST invoices?
Yes, businesses required to comply with HSN reporting rules must mention the appropriate HSN code on GST invoices. This helps ensure accurate tax calculation, reporting, and GST return filing.