GST glossary
HSN code
Harmonized System of Nomenclature code
An HSN code is the number that classifies goods under GST, based on the international Harmonized System, and it decides the GST rate. Invoices must show at least 4 digits if your turnover is up to ₹5 crore and 6 digits above ₹5 crore.
Why it matters to your business
The HSN code is how GST knows what you sell. It fixes the rate, it appears on your invoices and e-invoices, and it is summarised in your GSTR-1. A wrong code can mean the wrong rate on every sale of that item, which shows up later as tax short-paid with interest, or as customers questioning your invoices.
How it works
The code is built up in steps, as of September 2026:
| Digits | Level | Example |
|---|---|---|
| 2 | Chapter | 84: machinery and mechanical appliances |
| 4 | Heading | 8471: computers and their units |
| 6 | Sub-heading | a specific type within 8471 |
| 8 | Tariff item | used in the customs tariff for imports and exports |
The rules on invoices depend on your aggregate turnover in the previous financial year:
- Up to ₹5 crore: at least 4 digits on invoices to registered customers.
- Above ₹5 crore: at least 6 digits on all invoices.
Services use a separate code, the SAC, under the same rules.
Common mistakes
- Using a code from an old list, or one from a vendor’s invoice without checking it.
- Showing fewer digits than your turnover requires, on invoices, on e-invoices or in the HSN summary of GSTR-1.
- Mixing units in the HSN summary, such as pieces for one invoice and boxes for another.
- Keeping an old rate on an item after the rate changes from 22-09-2025.
Questions about HSN code
How many digits of HSN code must I show on an invoice?
If your aggregate turnover in the previous year was up to ₹5 crore, 4 digits on invoices to registered customers (optional for consumers). Above ₹5 crore, 6 digits on every invoice. Exporters and importers use 8 digits as in the customs tariff.
Where do I find the right HSN code for my product?
In the GST rate schedules and the customs tariff published by CBIC, and in the HSN search on the GST portal. Classify by what the product is and what it is made of, and ask your CA when a product could fall under two headings.
Does the HSN code decide the GST rate?
Largely yes. Rates are notified by HSN heading together with a description, so the same heading can carry different rates for different descriptions.
Do I report HSN codes in GSTR-1?
Yes. Table 12 of GSTR-1 is an HSN-wise summary of your sales, with quantity, value and tax, shown separately for sales to registered customers and to consumers.
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