HSN Code — Full Guide, List & GST Requirements

Updated: 3 June 2026

HSN (Harmonized System of Nomenclature) is a 6–8 digit international code that classifies goods for GST purposes. It determines the GST rate applicable to every product and must appear on tax invoices. Turnover above ₹5 Cr → 8-digit HSN mandatory; ₹1.5–5 Cr → 4 digits; ≤ ₹1.5 Cr → optional on invoices (needed in GSTR-1 for B2B). SAC codes (Service Accounting Codes) are the equivalent classification for services and are 4–6 digits.

₹5Cr+ turnover — 8-digit HSN mandatory on all invoices. Wrong HSN = penalty under Section 122, CGST Act.

HSN Digit Requirements by Turnover

Annual Turnover	HSN Digits Required	Applies To
Above ₹5 Crore	8 digits	All invoices (B2B & B2C)
₹1.5 Crore – ₹5 Crore	4 digits	All invoices
Up to ₹1.5 Crore	Optional on invoice	Required in GSTR-1 for B2B; B2C exempt
Composition taxpayers	Not required on invoice	Declared in CMP-08 / GSTR-4
E-Invoicing covered entities	As per turnover threshold	IRN generation requires correct HSN

HSN Code Examples — Common Goods

Below are frequently referenced HSN codes with their GST rates. Use the CBIC HSN search or GST portal to verify your specific product.

Product	HSN Code	GST Rate
Mobile phones / smartphones	8517	18%
Readymade garments ≤ ₹1,000 MRP	6109 / 6110	5%
Readymade garments > ₹1,000 MRP	6109 / 6110	12%
Rice (non-branded / in bulk)	1006	0%
Gold jewellery	7113	3%
Passenger cars (petrol/diesel, 1200–1500cc)	8703	28% + cess
Laptop / notebook computers	8471	18%
Milk (packaged, excluding UHT)	0401	0%
Cement	2523	28%
LED lamps / lights	9405	12%
Medicines / pharmaceuticals	3004	12% (most); some 0%
Books (printed)	4901	0%
Footwear ≤ ₹1,000 MRP	6401–6405	5%
Footwear > ₹1,000 MRP	6401–6405	18%

HSN vs SAC — Key Differences

India follows a dual classification: HSN for goods and SAC for services. Both were introduced under GST to replace the earlier Central Excise Tariff and Service Tax classification systems.

Feature	HSN Code	SAC Code
Full form	Harmonized System of Nomenclature	Service Accounting Code
Applies to	Goods / products	Services
Digits	6–8 digits	4–6 digits
International basis	WCO (World Customs Organization)	India-specific (CBIC)
Example	8517 – Mobile phones	998314 – IT software development
GST rate determined by	GST Council schedule	GST Council schedule

Frequently Asked Questions

What is HSN code in GST?

HSN stands for Harmonized System of Nomenclature — an internationally standardised system for classifying goods. In GST, every supply of goods must be classified under a specific HSN code. The code determines the applicable GST rate and must appear on tax invoices. India uses an 8-digit HSN code (compared to 6 digits in the international system) for more granular classification of goods.

How many digits is HSN code?

HSN codes in India can be 2, 4, 6, or 8 digits depending on context and taxpayer turnover. For GST invoice purposes: taxpayers with annual turnover above ₹5 crore must mention 8-digit HSN; those with turnover between ₹1.5 crore and ₹5 crore must use 4-digit HSN; taxpayers with turnover up to ₹1.5 crore are exempt from mentioning HSN on B2C invoices but still need it in GSTR-1 for B2B transactions.

What is SAC code vs HSN code?

HSN (Harmonized System of Nomenclature) codes are used for goods, while SAC (Service Accounting Code) codes are used for services. HSN codes are 6–8 digits; SAC codes are 4–6 digits. Both serve the same purpose — classifying the supply to determine the applicable GST rate. For example, IT software development services carry SAC code 998314 at 18% GST, while mobile phones carry HSN code 8517 at 18% GST. When in doubt: goods = HSN, services = SAC.

How to find HSN code for my product?

You can find the correct HSN code using multiple methods: (1) GST Portal — log in and use the HSN search tool under Services > User Services > Search HSN/SAC. (2) CBIC website — the Central Board of Indirect Taxes and Customs has a complete HSN schedule. (3) Your existing invoices or import/export documents — if you previously traded the product, the customs/BCD classification is usually the same HSN. (4) Consult a CA or tax professional for ambiguous products. Using a wrong HSN code can attract penalty under Section 122 of the CGST Act.

Is HSN code mandatory on invoice?

Yes, with thresholds. For taxpayers with annual turnover above ₹5 crore: 8-digit HSN is mandatory on all B2B and B2C invoices. For turnover between ₹1.5 crore and ₹5 crore: 4-digit HSN is mandatory. For turnover up to ₹1.5 crore: HSN is optional on invoices but must be reported correctly in GSTR-1 for B2B supplies. Composition taxpayers, unregistered persons, and those making only exempt supplies may have different requirements. From FY 2022-23, e-invoicing mandatorily captures HSN at the required digit level.

Gst Hsn Code Near You

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