If you sell physical goods in India and are registered for GST, you've likely encountered the term HSN. Properly classifying your goods using HSN codes is critical for determining the correct tax rate and filing accurate GST returns.
What is an HSN Code?
The Harmonized System of Nomenclature (HSN) is a 6-digit uniform code that classifies over 5,000 products globally. India has adopted this system under GST to bring uniformity to the classification of goods and ensure the correct tax rate is applied automatically based on the code.
While the global standard is 6 digits, India uses an 8-digit system for deeper classification of certain goods.
Who needs to mention HSN Codes on invoices?
The CBIC has laid down specific rules based on a business's Aggregate Annual Turnover (AATO) in the preceding financial year:
| Annual Turnover | B2B Invoices | B2C Invoices |
|---|---|---|
| Up to ₹ 5 Crores | 4 Digits (Mandatory) | Optional |
| More than ₹ 5 Crores | 6 Digits (Mandatory) | 6 Digits (Mandatory) |
| Exports / Imports | 8 Digits (Mandatory) | 8 Digits (Mandatory) |
How to find the correct HSN code?
The easiest way to find your HSN code is to search the CBIC website or use the GST Portal's built-in HSN search feature. You can search by the name of the product.
When creating an invoice using our Business Invoice Generator, you can simply type the HSN code into the dedicated field for each line item. The tool ensures it is formatted correctly in the final PDF for full GST compliance.