The HSN Code (Harmonized System of Nomenclature) is an internationally standardized system of names and numbers to classify traded products. In India, it is used under GST to classify goods for taxation purposes.
Structure of HSN Code
HSN codes are 2, 4, 6, or 8 digits:
- 2 digits: Chapter (broad category)
- 4 digits: Heading (narrower category)
- 6 digits: Subheading (specific product)
- 8 digits: Tariff item (country-specific)
Example
Rice (Basmati): 1006 30 20
- 10 - Chapter (Cereals)
- 1006 - Heading (Rice)
- 1006 30 - Subheading (Semi-milled or wholly milled)
- 1006 30 20 - Tariff item (Basmati rice)
HSN Requirements in GST Invoice
| Annual Turnover | HSN Digits Required |
|---|---|
| Up to Rs. 5 crores | 4 digits (optional for B2C) |
| Above Rs. 5 crores | 6 digits |
| Import/Export | 8 digits |
SAC Code for Services
Services are classified using SAC (Services Accounting Code), which is similar to HSN but specifically for services. SAC codes are 6 digits starting with 99.
Finding HSN Code
- GST portal HSN/SAC finder tool
- CBIC website
- GST rate schedule
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