List of HSN Codes Under GST - How to find HSN Code?

Introduction

HSN (Harmonized System of Nomenclature) codes are standardized codes used to classify goods under GST. They make taxation uniform, transparent, and easier to track. Every product has a unique HSN code, which helps in determining the correct GST rate. Similarly, services have SAC (Services Accounting Codes) for proper classification. Using HSN codes ensures that businesses, tax authorities, and customers are aligned on the nature of goods and services. In this article, we will explain what HSN codes are, their importance under GST, how they work globally and in India, the structure of HSN codes, the chapter-wise distribution of goods, and a step-by-step process to find your HSN code on the GST portal.

What is an HSN Code?

HSN (Harmonized System of Nomenclature) is a worldwide system used to classify goods for taxation purposes. Developed by the World Customs Organization (WCO), HSN assign a unique code to every type of goods. Each code ensures the uniform identification of goods across countries.

• Example: A mobile phone has a different HSN code than a laptop.

• It helps governments and businesses in tax calculation, reporting, and international trade.

Under GST in India, HSN codes are mandatory for businesses depending on their turnover, ensuring the right GST rates are applied.

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How Does HSN Code Work?

HSN codes are a numerical system that classifies goods systematically. Each product is assigned a unique code, which determines its GST rate.

Working:

1. Business identifies the products they sell.

2. Look up the HSN code corresponding to that product.

3. Apply the GST rate based on the HSN code.

4. Mention the HSN code on invoices and GST returns.

For example:

• Mobile phones have HSN 8517, attracting 18% GST.

• Laptops have HSN 8471, also attracting 18% GST.

By using HSN codes, tax authorities can track goods movement and ensure accurate tax collection, while businesses avoid confusion or incorrect tax charges.

Why is HSN Important under GST?

HSN is important under GST because:

1. Simplifies Taxation: Helps determine the right GST rate for every product.

2. Uniform Classification: Ensures the same product is taxed consistently across states.

3. Reduces Errors: Avoids mistakes in invoices and GST returns.

4. Compliance: Makes filing ITC claims and returns easier.

5. International Trade: Facilitates exports and imports with a common classification system.

Using HSN codes ensures businesses remain GST-compliant and avoid penalties.

HSN Worldwide

The HSN system was developed by the World Customs Organization (WCO) and is used globally to classify products.

• It is a 6-digit code system internationally.

• Helps in international trade by providing a uniform classification of goods.

• Countries can expand HSN codes up to 8 or 10 digits for national purposes.

HSN enables governments and customs to track imports and exports, calculate taxes, and maintain statistics on trade patterns. Most countries use HSN to ensure that goods are taxed correctly and documentation is simplified.

HSN in India

India adopted HSN for GST to simplify tax compliance and standardize product classification.

• Businesses with a turnover up to ₹1.5 crore may not need to use HSN codes.

• Businesses with turnover between ₹1.5 crore and ₹5 crore must use 4-digit HSN codes.

• Businesses with turnover above ₹5 crore must use 6-digit HSN codes.

India also introduced SAC codes for services. HSN in India ensures uniform taxation, transparency, and proper reporting across all states.

Structure of HSN Code in India

HSN codes in India are structured as follows:

1. Chapter: First 2 digits – represent a broad category of goods.

2. Heading: Next 2 digits – represent the group of products.

3. Sub-heading: Last 2 digits – represent specific goods.

• Example: HSN 8517 – Electronics

• • 85: Electrical machinery

  • 17: Phones, modems, and communication equipment

This hierarchical structure helps in accurate classification and tax application.

Services Accounting Code (SAC) in GST

SAC is used for services instead of HSN codes.

• SAC is a 6-digit code that identifies services under GST.

• Example: Legal services, consultancy, or insurance have separate SAC codes.

• Businesses providing services must mention SAC on invoices.

SAC codes ensure uniform taxation and easy filing of GST returns for services.

Declaration of HSN Code for Goods and Services

Businesses must declare HSN codes:

1. On GST invoices – mandatory for turnover above ₹1.5 crore.

2. On GST returns – helps in calculating tax liability and ITC.

3. For services, SAC codes are used instead.

This declaration ensures accurate tax collection and compliance with GST law.

HSN-wise Summary of Outward Supplies – Chapter-wise Distribution of Goods Using HSN Codes

Chapter

Description

HSN Codes

GST Rate

1-5

Animals and Animal Products

0101-0506

5%

6-14

Vegetable Products, Foodstuffs

0601-1404

5%/12%

15-22

Fats, Oils, Beverages

1501-2208

5%/12%

23-24

Food Preparations, Tobacco

2301-2403

12%/18%

25-27

Minerals, Ores

2501-2709

5%/18%

28-38

Chemicals, Plastics

2801-3824

18%

39-40

Plastics and Rubber Products

3901-4002

18%

41-43

Leather, Wood Products

4101-4304

12%/18%

44-46

Paper, Pulp, Textiles

4401-4602

12%/18%

47-49

Printed Material, Fabrics

4701-4909

5%/12%

50-63

Textiles, Silk, Cotton, Wool

5001-6307

5%/12%/18%

64-67

Footwear, Headgear

6401-6706

18%

68-70

Stone, Glass, Ceramics

6801-7007

12%/18%

71-83

Jewelry, Metals, Machinery

7101-8409

3%/18%

84-85

Machinery and Electrical Equipment

8401-8517

18%

86-89

Transport Equipment

8601-8908

12%/18%

90-97

Instruments, Art, Miscellaneous Goods

9001-9706

12%/18%

This chapter-wise HSN distribution helps businesses classify goods properly and ensures accurate GST reporting.

How to Find HSN Code on GST Portal

1. Visit GST Portal: Go to www.gst.gov.in.

2. Navigate to Search Taxpayer: Click on Search > Taxpayer.

3. Select HSN Search: Enter product name or category.

4. View HSN Code: The portal displays the HSN code and applicable GST rate.

5. Use in Invoice: Mention the HSN code on sales invoices and GST returns.

This step-by-step method ensures that businesses use correct HSN codes and comply with GST law.

Conclusion

HSN codes are essential for GST compliance and proper classification of goods. By understanding the HSN structure, SAC codes, and chapter-wise distribution, businesses can apply the right GST rates, claim ITC, and avoid errors. Using the GST portal, one can easily find and verify HSN codes for accurate invoicing. Proper application of HSN codes ensures transparency, uniform taxation, and smooth filing of GST returns.