What is an HSN code?
HSN (Harmonized System of Nomenclature) is a numbering system for goods, used around the world to classify products for tax and trade. Under GST, every product has an HSN code, and the code decides which GST rate applies.
Services use SAC (Services Accounting Code) instead. SAC codes start with 99, such as 9954 for construction services.
How to read an HSN code
| Digits | Level | Example |
|---|---|---|
| 2 | Chapter | 10 — Cereals |
| 4 | Heading | 1006 — Rice |
| 6 | Sub-heading | 100630 — Semi-milled or wholly milled rice |
| 8 | Tariff item | 10063010 — Rice, parboiled |
Each extra pair of digits narrows the product down. The finder shows every level for the code you pick.
How many HSN digits go on your invoice?
- Aggregate annual turnover up to ₹5 crore: 4-digit HSN on B2B invoices (optional on B2C invoices).
- Aggregate annual turnover above ₹5 crore: 6-digit HSN on every invoice.
- These rules apply from 1 April 2021 (CBIC Notification 78/2020 – Central Tax).
Finding the GST rate for a code
The HSN list gives codes and descriptions only. GST rates are set by separate rate notifications, and they changed with GST 2.0 on 22 September 2025. Once you have the code, check its rate in CBIC’s list of GST rates for goods and services.
Billman