HSN Code: What It Is, How to Find It, and Why It Matters for GST

Every GST invoice in India needs an HSN code — but most business owners have no idea what it is until they get flagged for using the wrong one. If that sounds familiar, this guide is for you.

We'll cover what HSN codes are, how to find the right one for your products, when they're mandatory, and what happens if you get it wrong.

What is an HSN code?

HSN stands for Harmonised System of Nomenclature. It's an internationally standardised system developed by the World Customs Organization (WCO) that over 200 countries use to classify traded products. Think of it as a universal product ID.

In India, the Central Board of Indirect Taxes and Customs (CBIC) maintains the HSN code list — over 22,000 entries, each mapped to a specific GST rate.

How HSN codes are structured

HSN codes follow a hierarchical digit system. The more digits, the more specific:

• 2 digits — Chapter (e.g., 85 = Electrical Machinery)
• 4 digits — Heading (e.g., 8517 = Telephones, smartphones)
• 6 digits — Sub-heading (e.g., 851712 = Smartphones)
• 8 digits — Tariff item (e.g., 85171211 = Push-button phones, India-specific)

GST invoicing typically uses 4 or 6 digits. Customs duty uses the full 8.

HSN vs SAC — what's the difference?

If you sell goods, you use an HSN code. If you provide services, you use a SAC (Service Accounting Code). SAC codes always start with 99.

When is HSN mandatory on invoices?

The number of HSN digits required depends on your annual turnover:

How to find the right HSN code

Here are the most reliable ways, in order of convenience:

1. Use our free search tool — Search 22,000+ HSN/SAC codes by product name or number. It's instant and covers the full CBIC master list.
2. Check the GST portal — The official HSN/SAC search is the authoritative source.
3. Look at the chapter structure — HSN is organised into 21 sections and 97 chapters covering every type of goods.
4. Ask your CA for borderline cases — e.g., is flavoured milk 0402 or 2202? Classification disputes are more common than you'd think.

Common HSN codes by industry

Food & FMCG

• 0401 — Milk and cream (0% GST)
• 1006 — Rice (5% GST)
• 1905 — Bread, biscuits, cakes (18% GST)
• 2202 — Aerated beverages (28% GST)

Textiles

• 6109 — T-shirts (5% GST)
• 6203 — Men's suits, trousers (12% GST)
• 6403 — Footwear (18% GST)

Electronics & IT

• 8471 — Computers, laptops (18% GST)
• 8517 — Smartphones (18% GST)
• 998314 — IT development services (18% GST, SAC)

Construction

• 2523 — Portland cement (28% GST)
• 7213 — TMT bars, steel rods (18% GST)
• 6907 — Ceramic tiles (18% GST)

What happens if you use the wrong HSN?

This isn't a minor paperwork issue — wrong HSN codes have real consequences:

• ITC rejection — Your buyer may lose their Input Tax Credit claim if the HSN on your invoice is wrong
• Tax rate mismatch — Wrong HSN often means wrong GST rate, which creates a tax demand
• E-invoice rejection — The IRP portal validates HSN codes; invalid codes block e-invoice generation entirely
• Departmental audit — Systematic wrong HSN usage is a red flag that can trigger assessment proceedings

HSN codes in GSTR-1 and GSTR-9

Your GSTR-1 return requires an HSN-wise summary of outward supplies (Table 12). The annual return GSTR-9 also needs HSN-wise breakup for both inward and outward supplies.

If you've been entering correct HSN codes on every invoice throughout the year, this summary generates itself. If you haven't... well, you're in for a painful March.

1010 auto-generates the HSN summary table for both GSTR-1 and GSTR-9 directly from your invoice data — no manual compilation needed.