An HSN code is the number that classifies goods under GST and customs. HSN stands for Harmonised System of Nomenclature. Each product falls under one code — for example paneer is 0406 and laptops are 8471. Services use SAC codes instead.
Video: HSN code explained in 2 minutes
HSN code full form and meaning
HSN = Harmonised System of Nomenclature. It is an international list of goods kept by the World Customs Organization and used by more than 200 countries, so the first 6 digits of a product's code are the same in India and abroad. India adds 2 more digits in its Customs Tariff, and the GST rate notifications refer to these codes.
Putting the right HSN code on an invoice tells the buyer and the tax department exactly which goods were sold, and so which GST rate applies.
What the 2, 4, 6 and 8 digits mean
| Digits | Level | Example |
|---|---|---|
| 2 | Chapter | 84 Machinery and mechanical appliances |
| 4 | Heading | 8471 Automatic data processing machines (computers) |
| 6 | Sub-heading | 8471 30 Portable computers (laptops) |
| 8 | Tariff item | 8471 30 10 Personal computer |
There are 98 chapters in all. Browse them on the HSN code list.
HSN code vs SAC code
| HSN code | SAC code | |
|---|---|---|
| Used for | Goods | Services |
| Full form | Harmonised System of Nomenclature | Services Accounting Code |
| Digits | 2 to 8 | 6, always starting with 99 |
| Example | 2523 cement | 9965 goods transport |
| Full list | HSN code list | SAC code list |
Is HSN code mandatory on a GST invoice?
Yes. From 1 April 2021, under Notification 78/2020-Central Tax:
- Aggregate annual turnover up to ₹5 crore: at least 4 digits on B2B tax invoices (optional on B2C invoices).
- Turnover above ₹5 crore: 6 digits on all tax invoices.
The same digits are used in the HSN-wise summary of outward supplies in GSTR-1, and SAC codes for services follow the same rule. You may always show more digits than the minimum.
When do you need the 8-digit HSN code?
The 8-digit tariff item is used for imports and exports (shipping bills and bills of entry). For GST, 4 or 6 digits are the minimum, but the GST rate entry for a product can be written at any level — 2, 4, 6 or 8 digits — so check the full code before you pick the rate.
How to find the HSN code of a product
- Type the product name or the first digits in the HSN code finder — for example "paneer", "cement" or "8471".
- Open the matching chapter and read the description: the code must describe your goods, including how they are sold (for example packed or loose).
- For everyday items, use the ready answers: HSN and SAC codes for common goods and services.
- Open the code in the BooksOn HSN app to see its GST rate, conditions and the CBIC notification entry.
Questions
What is HSN code?
An HSN code is the number that classifies goods under GST and customs. Each product falls under one code: 2 digits give the chapter, 4 the heading, 6 the sub-heading and 8 the tariff item. For example, paneer is heading 0406 and laptops are 8471.
What is the full form of HSN code?
HSN stands for Harmonised System of Nomenclature, the international system for classifying goods maintained by the World Customs Organization.
Is HSN code mandatory on a GST invoice?
Yes, from 1 April 2021 (Notification 78/2020-Central Tax): at least 4 digits on B2B tax invoices if aggregate annual turnover is up to ₹5 crore, and 6 digits on all tax invoices above ₹5 crore.
What is the difference between HSN code and SAC code?
HSN codes are for goods (chapters 01 to 98). SAC (Services Accounting Code) codes are for services; they have 6 digits and all start with 99.
What is an 8-digit HSN code?
The 8-digit code is the tariff item in India's Customs Tariff, the most detailed level. It is used for imports and exports, and any business may show it on GST invoices; the GST minimum is 4 or 6 digits.
Reference only; see Sources & disclaimer. BooksOn HSN is an independent app, not a government service.
