GST Classification Guide · FY 2025-26

HSN Code in GST —
List, Digits & Rates

What an HSN code is, how many digits you must report in GSTR-1 by turnover, the difference between HSN and SAC, common product codes with current GST rates, and how to find the right code for your product.

Updated for FY 2025-26 Post GST 2.0 rates Goods & Services (HSN/SAC)

Talk to a GST Expert See HSN examples

6-digitTurnover > ₹5 cr

4-digitTurnover ≤ ₹5 cr

Table 12Reported in GSTR-1

5% / 18%Post GST 2.0 slabs

Quick Answer

HSN (Harmonized System of Nomenclature) is an international code that classifies goods and fixes the GST rate on each product. On a GST invoice and in Table 12 of GSTR-1, taxpayers with aggregate turnover above ₹5 crore must report 6-digit HSN, and those up to ₹5 crore report 4-digit HSN. HSN is used for goods; the equivalent code for services is SAC. Since May 2025 the HSN in Table 12 must be picked from the portal dropdown, not typed.

Turnover > ₹5 cr 6 digits

Turnover ≤ ₹5 cr 4 digits

Services SAC

Wrong code Penalty

How many digits

HSN Digit Requirements by Turnover

The number of HSN digits you must report depends on your aggregate annual turnover (AATO). From the May 2025 return period (Phase 3), HSN codes in GSTR-1 Table 12 are selected from a dropdown and B2B/B2C are reported separately.

Aggregate turnover	HSN digits in GSTR-1	Applies to
Above ₹5 crore	6 digits	All B2B and B2C supplies
Up to ₹5 crore	4 digits	B2B mandatory; B2C now also reported
Composition taxpayers	As applicable	Declared via CMP-08 / GSTR-4
E-invoicing entities (> ₹5 cr)	6 digits	Required for valid IRN generation

Table 12 of GSTR-1/GSTR-1A splits B2B and B2C HSN summaries; codes must be chosen from the portal list (Phase 3, from May 2025). India uses up to 8-digit HSN for customs tariff classification.

6 digits, not 8, for most GSTR-1 filers

The common belief that ₹5 crore+ turnover needs "8-digit HSN" on GSTR-1 is dated. The current Table 12 rule is 6 digits above ₹5 crore and 4 digits up to ₹5 crore. The 8-digit HSN is the full customs tariff level and is still required for imports/exports and some notified goods.

Common goods

HSN Code Examples with Current GST Rates

Frequently used HSN codes with their GST rate after the GST 2.0 rationalisation effective 22 September 2025, which moved most goods to a two-slab 5% / 18% structure (with 40% for luxury and sin goods). Always confirm your exact product on the official GST rate finder before invoicing.

Product	HSN	GST rate
Mobile phones / smartphones	8517	18%
Laptops / notebook computers	8471	18%
Readymade garments ≤ ₹2,500	6109 / 6110	5%
Readymade garments > ₹2,500	6109 / 6110	18%
Footwear ≤ ₹2,500	6401–6405	5%
Footwear > ₹2,500	6401–6405	18%
Cement	2523	18%
Small cars (petrol/diesel ≤1200cc, ≤4m)	8703	18%
Luxury / large cars & SUVs	8703	40%
Gold jewellery	7113	3%
Most medicines	3004	5%
LED lamps / lights	9405	18%
UHT milk / pre-packaged paneer	0401 / 0406	Nil
Printed books	4901	Nil
Unbranded rice / wheat / pulses	1006 / 1001	Nil

Rates reflect the GST 2.0 two-slab structure effective 22 September 2025. The ₹1,000 garment/footwear threshold was raised to ₹2,500. Verify each item on gst.gov.in / cbic-gst.gov.in.

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Goods vs services

HSN vs SAC — What is the Difference?

India uses a dual classification: HSN codes for goods and SAC (Service Accounting Code) for services. Both fix the applicable GST rate and must be reported the same way in GSTR-1. When in doubt: a product = HSN, a service = SAC.

HSN

For goods / products

Harmonized System of Nomenclature (WCO)
Used for every supply of goods
2 / 4 / 6 / 8 digits
Example: 8517 — mobile phones
Determines the product's GST rate

SAC

For services

Service Accounting Code (India / CBIC)
Used for every supply of service
6 digits (starts with 99)
Example: 998314 — IT software development
Determines the service's GST rate

Feature	HSN	SAC
Full form	Harmonized System of Nomenclature	Service Accounting Code
Applies to	Goods / products	Services
Digits	2 / 4 / 6 / 8	6 (prefix 99)
Basis	WCO (global)	India-specific (CBIC)
Example	8517 — mobile phones	997212 — renting of residential property

Step by step

How to Find the Right HSN Code

Search the portalServices → User Services → Search HSN/SAC

→

Check CBIC scheduleFull HSN rate schedule on cbic-gst.gov.in

→

Reuse import/BCD codeCustoms classification is usually the same HSN

→

Confirm with a CAFor ambiguous or multi-use products

Identify goods (HSN) vs service (SAC)
Search HSN/SAC on the GST portal
Match to the 6-digit tariff heading
Verify the GST rate on the CBIC rate finder
Pick the code from GSTR-1 Table 12 dropdown
Report B2B and B2C HSN separately

Get it wrong

Penalty for Wrong or Missing HSN Code

Using an incorrect HSN code — or omitting it where mandatory — can attract a penalty under Section 125 of the CGST Act (general penalty, up to ₹25,000 CGST + ₹25,000 SGST). A wrong HSN that changes the tax charged can also trigger demand and interest at 18% under Section 50, so classification should be verified, not guessed.

TaxClue Insight

HSN is not just a compliance field — it decides your GST rate. A single wrong digit can move a product between the 5% and 18% slab, understate or overstate tax, and mismatch your GSTR-1 with GSTR-3B. Locking the right HSN once, at product-master level, prevents recurring return errors.

Government sourcesHSN / SAC search & rates: gst.gov.in · CBIC rate finder & schedule: cbic-gst.gov.in · Table 12 HSN reporting: GSTN advisory (Phase 3, eff. May 2025 return period) · GST 2.0 two-slab rates: GST Council, effective 22 September 2025

Frequently Asked Questions

Basics

What is HSN code in GST?

HSN stands for Harmonized System of Nomenclature — an internationally standardised system, maintained by the World Customs Organization, for classifying goods. Under GST, every supply of goods is classified under a specific HSN code that determines the applicable GST rate and must appear on the tax invoice and in GSTR-1. India uses up to an 8-digit HSN at the customs tariff level for granular classification.

How many digits is an HSN code?

An HSN code can be 2, 4, 6 or 8 digits. For GSTR-1 reporting under the current Table 12 rules, taxpayers with aggregate turnover above ₹5 crore must report 6-digit HSN, and those up to ₹5 crore must report 4-digit HSN. The full 8-digit HSN is used for customs (imports and exports) and certain notified goods.

How many digits of HSN are mandatory above ₹5 crore turnover?

Six digits. Under the current GSTR-1 Table 12 rules, a taxpayer with aggregate annual turnover above ₹5 crore must report 6-digit HSN codes on all B2B and B2C supplies. The older "8-digit for ₹5 crore+" figure is outdated for GSTR-1; 8 digits remain the customs tariff level for imports and exports.

Is HSN code mandatory on a GST invoice?

Yes, with digit levels based on turnover. Taxpayers above ₹5 crore must show 6-digit HSN, and those up to ₹5 crore must show 4-digit HSN. HSN reporting for all B2B supplies in GSTR-1 is mandatory regardless of turnover, and from the May 2025 return period the code must be selected from the portal dropdown rather than typed manually.

What is Table 12 of GSTR-1?

Table 12 is the HSN-wise summary of outward supplies in GSTR-1 and GSTR-1A. From the May 2025 return period (Phase 3), it is split into two parts — a B2B HSN summary and a B2C HSN summary — and the HSN codes must be chosen from a validated dropdown list on the GST portal instead of being entered by hand.

HSN vs SAC

What is the difference between HSN and SAC code?

HSN codes classify goods, while SAC (Service Accounting Code) codes classify services. HSN is based on the WCO global system and runs 2 to 8 digits; SAC is India-specific, is 6 digits, and always begins with 99. Both determine the applicable GST rate. For example, mobile phones carry HSN 8517 at 18%, while IT software development carries SAC 998314 at 18%. Goods = HSN, services = SAC.

Do services have an HSN code?

Services do not use HSN — they use SAC (Service Accounting Code), which is the services equivalent. SAC codes are 6 digits and start with 99 (for example, 997212 for renting of residential property or 998314 for IT software services). On invoices and in GSTR-1, goods are reported by HSN and services by SAC.

Rates

How does the HSN code determine the GST rate?

Each HSN heading is mapped to a GST rate in the GST Council rate schedule. Once you classify a product under the correct HSN, the rate follows automatically. After the GST 2.0 rationalisation effective 22 September 2025, most goods fall into a two-slab structure of 5% or 18%, with a 40% slab for luxury and sin goods, so the correct HSN is what places your product in the right slab.

Did GST 2.0 change HSN rates?

GST 2.0 (effective 22 September 2025) did not change HSN codes themselves — codes are a WCO classification — but it changed the rate mapped to many of them. The 12% and 28% slabs were largely removed, leaving 5% and 18% with a 40% demerit slab. For example, cement moved from 28% to 18% and the garment/footwear concessional threshold rose from ₹1,000 to ₹2,500.

What is the HSN code and GST rate for mobile phones?

Mobile phones and smartphones are classified under HSN 8517 and attract 18% GST. This rate was retained under GST 2.0. The same 18% applies to most electronics such as laptops (HSN 8471) and LED lamps (HSN 9405).

What is the GST rate on garments after GST 2.0?

Readymade garments (HSN 6109/6110) priced up to ₹2,500 per piece are taxed at 5%, and those above ₹2,500 at 18%. GST 2.0, effective 22 September 2025, raised the concessional threshold from the earlier ₹1,000 to ₹2,500. Footwear follows the same ₹2,500 threshold.

Finding & Errors

How do I find the HSN code for my product?

You can find the correct HSN code by (1) using the HSN/SAC search on the GST portal under Services → User Services → Search HSN/SAC, (2) checking the CBIC rate schedule on cbic-gst.gov.in, (3) reusing the customs/BCD classification from your import or export documents, which is usually the same HSN, or (4) consulting a CA for ambiguous products. Verify the mapped GST rate before invoicing.

What is the penalty for using a wrong HSN code?

An incorrect or missing HSN code can attract a general penalty under Section 125 of the CGST Act — up to ₹25,000 CGST plus ₹25,000 SGST. If the wrong code changes the tax charged, it can also lead to a tax demand with interest at 18% under Section 50. Because HSN drives the rate, classification should be verified rather than guessed.

Is HSN code the same as tariff code for imports?

They share the same first 6 digits. The 8-digit customs tariff code used for imports and exports (BCD/Customs) is built on the same Harmonized System, so the HSN you use for GST usually matches the customs classification at the 6-digit level. The extra two digits at the 8-digit level are India-specific tariff sub-classifications.

Do composition taxpayers need to report HSN codes?

Composition taxpayers do not file GSTR-1 and so do not report HSN in Table 12. They declare turnover through quarterly CMP-08 and the annual GSTR-4. However, correct classification still matters, because it establishes that supplies fall within the composition scheme and are taxed at the right rate.

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