Every product in the world has an HSN code. It's the universal language that tax authorities use to identify what you're selling and what rate applies.
Getting your HSN code wrong on invoices isn't just a technical error — it can mean applying the wrong GST rate, which affects your compliance, your buyer's ITC, and potentially triggers a scrutiny notice.
Here's everything you need to know.
What is HSN Code?
HSN stands for Harmonised System of Nomenclature — a 6-digit international coding system developed by the World Customs Organisation (WCO) to classify goods. India extended this to 8 digits for more granular classification.
For services, the equivalent is SAC (Service Accounting Code), developed by the Central Board of Indirect Taxes.
HSN Code Structure — How to Read It
An HSN code like 61091090 breaks down as:
- 61 = Knitted or crocheted articles of apparel
- 6109 = T-shirts, singlets
- 610910 = Of cotton
- 61091090 = Other (not specified elsewhere)
How Many Digits Do You Need?
This depends on your annual turnover:
| Turnover | Required HSN Digits | Example | |----------|---------------------|---------| | Up to ₹5 crore | 4 digits | 6109 | | Above ₹5 crore | 6 digits | 610910 | | Exports/Imports | 8 digits | 61091090 |
For services (SAC codes), 6 digits are always required regardless of turnover.
How to Find HSN Code for Your Product
Method 1: Use Our HSN Finder (Fastest)
Go to SmartGST HSN Finder, type your product name (in English), and get the HSN code and applicable GST rate instantly.
Method 2: Chapter-wise Search
Products are organised in 99 chapters:
- Chapter 1-24: Agricultural products, food
- Chapter 25-27: Minerals, fuels
- Chapter 28-38: Chemicals
- Chapter 39-40: Plastics, rubber
- Chapter 41-43: Leather, furs
- Chapter 44-49: Wood, paper
- Chapter 50-63: Textiles, clothing
- Chapter 64-67: Footwear, headgear
- Chapter 84-85: Machinery, electronics
- Chapter 86-89: Vehicles, aircraft
- Chapter 90-92: Instruments, watches
Method 3: CBIC Website
Go to cbic-gst.gov.in and search GST Rates for Goods/Services.
Common HSN Codes and Their GST Rates
| HSN | Product | GST Rate | |-----|---------|----------| | 1001 | Wheat | 0% | | 0901 | Coffee | 5% | | 2106 | Food preparations | 18% | | 3004 | Medicines | 12% | | 8471 | Computers, laptops | 18% | | 8517 | Mobile phones | 18% | | 6109 | T-shirts | 12% | | 6403 | Footwear | 18% | | 9403 | Furniture | 18% | | 9619 | Sanitary items | 12% |
SAC Codes for Services
Services use SAC codes. Common ones:
| SAC | Service | GST Rate | |-----|---------|----------| | 998311 | IT software services | 18% | | 998313 | IT consulting | 18% | | 996111 | Wholesale trade | 18% | | 997212 | Real estate rental | 18% | | 998321 | Accounting/bookkeeping | 18% | | 997151 | Legal services | 18% |
What Happens With Wrong HSN Code?
Using an incorrect HSN code has cascading effects:
1. Wrong GST rate applied Different HSN codes carry different rates. Wrong code leads to wrong rate — underpayment or overpayment.
2. ITC rejection for buyer If your HSN code doesn't match what was supplied, the buyer's ITC can be disputed during GST audit.
3. E-way bill issues E-way bill requires HSN code. Mismatch between invoice and goods in transit can lead to detention.
4. Scrutiny and notice Pattern of wrong HSN codes can trigger a notice under Section 61 or Section 73.
Verify Your HSN Code
Before using an HSN code on invoices, verify it at:
- Our HSN Finder tool
- CBIC website: cbic-gst.gov.in
- GST portal: gst.gov.in
When in doubt, especially for imported goods or complex products, consult a CA or customs agent.
Conclusion
HSN codes might seem like a minor administrative detail, but getting them right is fundamental to GST compliance. The right code ensures the right rate, smooth ITC for your buyers, and no issues at checkposts.
Use our HSN Code Finder to quickly look up any product and get the correct code with applicable GST rate — no login required, completely free.
