HSN codes decide the GST rate on your products — and using the wrong one means charging the wrong tax. Here's how the system works and how to find your codes confidently.
What is an HSN code?
HSN (Harmonised System of Nomenclature) is a global classification system for goods; India uses it to map every product to its GST rate. Services use SAC (Services Accounting Codes) instead. The code appears on your invoices and in your GSTR-1 HSN summary.
How many digits do you need?
- Turnover up to ₹5 crore — 4-digit HSN on B2B invoices (optional on B2C).
- Turnover above ₹5 crore — 6-digit HSN on all invoices.
- Imports/exports — full 8-digit codes.
How to find your product's HSN code
- Search the official GST portal's HSN directory (gst.gov.in → Services → User Services → Search HSN).
- Check a supplier invoice for the same product — established suppliers usually classify correctly.
- Look at the chapter logic: codes group by material and function (e.g., Chapter 61-62 garments, Chapter 84-85 machinery and electronics).
- When two codes seem plausible, pick based on the product's essential character, and get written confirmation from your CA for high-volume items.
What wrong codes cost
A wrong HSN can mean charging 5% where 18% applies — the department recovers the difference from you, not your customer, plus interest and a ₹25,000 penalty for incorrect invoicing in serious cases. It also creates mismatches in your buyers' filings.
Set it once, reuse forever
In BizGST Pro you save the HSN code and GST rate on each item once — every future invoice picks it up automatically, and your GSTR-1 HSN summary compiles itself.