What is an HSN code?

HSN stands for Harmonised System of Nomenclature. Under GST, it is used to classify goods so businesses can report them consistently for tax purposes.

India builds on the international six-digit Harmonized System and extends it to 8-digit tariff items for customs. Services use SAC, or Service Accounting Code.

How is an HSN code structured?

Take the 8-digit code 04022910, used for whole milk in the Indian tariff.
The code becomes more specific as digits are added. Product composition, form, use, and chapter notes can affect classification.

Why does the correct HSN code matter?

A wrong classification can affect GST rates, invoices, GSTR-1, e-invoices, e-way bills, customs documents, refunds, and tax exposure.

For recurring products, maintain an internal classification master.

How to search an HSN code on the GST Portal

The GST Portal provides a Search HSN Code tool that is available both before and after login.

Step 1: Open Search HSN Code

Use:

GST Portal → Services → User Services → Search HSN Code

Step 2: Search by HSN or description

Search using an HSN code or a trade/common description such as “cardamom” or “cotton yarn”.

Step 3: Read the full description

Compare your product → technical description → related HSN codes → chapter/subheading context. The tool can show related 6-digit and 8-digit codes.

Step 4: Verify the GST rate separately

The HSN search tool helps identify the classification. For the current GST rate, verify the code against CBIC's GST goods/services rate schedule and the applicable notifications.

How many HSN digits do you need to report?

For GST tax invoices, Notification No. 78/2020-Central Tax sets minimum HSN/SAC reporting based on aggregate turnover in the preceding financial year.

What about GSTR-1?

GSTN's current Phase 3 implementation for Table 12 of GSTR-1/GSTR-1A also uses:

• 4-digit HSN/SAC for taxpayers with AATO up to ₹5 crore
• 6-digit HSN/SAC for taxpayers above ₹5 crore

Which GST rate applies to an HSN code?

From 22 September 2025, India's GST structure moved primarily to:

• 5% merit rate
• 18% standard rate
• 40% special rate for selected demerit/luxury categories

Nil-rated and exempt supplies, specific rates, and exceptions still exist, so do not rely on the broad slabs alone.

Use this sequence:

Find correct HSN → read exact product description → check current CBIC rate entry → check conditions/exemptions → apply the rate

What changes for exporters?

There are two separate issues: GST reporting and customs classification.

GST invoice reporting

The minimum HSN digits required on the GST invoice continue to follow the applicable turnover-based rules.

Customs and shipping documentation

Goods exporters work with India's 8-digit ITC(HS) tariff classification for customs and shipping-bill purposes.

GST treatment of exports

Exports are zero-rated supplies under GST.

Exporters may use LUT/bond without payment of IGST or another permitted tax/refund route. Zero-rating does not make classification irrelevant; codes still need to align across invoices and customs records.

After classification, the payment still has to reconcile

Correct HSN classification closes the tax side of the invoice. The exporter still needs to collect and match the overseas payment.

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