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HSN Code Finder
Find HSN Code or ITC HS Code and their GST Rates for your product with our HSN Code Search Tool. Search by either product name or HSN Code. Use a category list as an alternative way to get to your product's HS code
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Introduction to HSN Code
The Harmonized System Nomenclature (HSN) Code is an internationally standardized system developed by the World Customs Organization (WCO) for the classification of goods. The primary objective of the HSN Code is to facilitate the smooth and uniform classification of products across countries, which helps in ensuring consistent and transparent trade practices globally.
Purpose and Importance of HSN Code
The HSN Code plays a pivotal role in international trade by providing a systematic and logical framework for classifying goods. This system helps in identifying products easily and applying the correct duties and taxes. The HSN Code also aids in the collection of international trade statistics and ensures compliance with global trade regulations. In domestic contexts, particularly under the Goods and Services Tax (GST) regime in India, the HSN Code helps in the standardized classification of goods for taxation purposes, thus simplifying tax compliance for businesses.
Structure of HSN Code
India has a HSN code with 8 digits.
For instance:
The HSN code for handkerchiefs made of textile materials is 62.13.90.10.
Here the first two digits (62) represent the chapter number for articles of apparel and clothing accessories that are not knitted or crocheted.
The next two digits (13) are the heading number for handkerchiefs.
The next two digits (90) are the product code for handkerchiefs made of textile materials.
The last two digits (10) are added for more classification and represent the tariff items. It might indicate if the handkerchiefs are made from man-made fiber.
The HSN code structure also represents the following:
| Chapter | Header | Subheading | Tariff item |
|---|---|---|---|
| 62 | 13 | 19 | 10 |
HSN Section-wise Code List
All the goods and services are classified into 21 sections and 99 chapters. The chapters are again classified into 1244 subheadings. We have provided you with the sections and chapters listed below:
| Section | HSN Code List |
|---|---|
| Section 1 | Live animals, animal products |
| Section 2 | Vegetable products |
| Section 3 | Animal or vegetable fats and oils and their cleavage products, prepared edible fats, animal or vegetable waxes |
| Section 4 | Prepared foodstuffs, beverages, spirits and vinegar, tobacco and manufactured tobacco substitutes |
View More | |
HSN Chapter-wise Code List
| Chapter Number | Description |
|---|---|
| Chapter 1 | Live animals and poultry |
| Chapter 2 | Animal meat and edible offals |
| Chapter 3 | Fish, fillets and other aquatic animals meat |
| Chapter 4 | Honey, eggs and dairy products |
| Chapter 5 | Inedible animal products (unspecified) |
View More | |
HSN in GST
From April 2021 on, mentioning HSN codes for goods and using SAC codes for services was mandated by the Indian government. Based on the transaction charges, the total number of HSN codes to be declared varies. Here is a clear outline for the same.
| Transaction Charges | No. of digits of HSN to be declared |
|---|---|
| Upto ₹1.5 crore | 0 |
| ₹1.5 crore- ₹5 crore | 2 |
| More than ₹5 crore | 4 |
Declaration of HSN Code for Goods and Services
| Transaction Charges | Type of Inovice document | No.of digits of HSN to be declared |
|---|---|---|
| Up to ₹5 crore | Mandatory for B2B tax invoices | 4 |
| Optional for B2C tax invoices | 4 | |
| More than ₹5 crore | Mandatory for all invoices | 6 |
All of the HSN codes should be declared in every tax invoice issued by the taxpayer. If the taxpayer is involved in exports and imports under the GST, then all eight digits of the HSN code have to be declared.
Why is the HSN code required?
The HSN code is mandatory for GSTR forms. HSN codes provide clarity on GST rates for specific products, benefiting taxpayers. It is mandatory to mention the HSN number in the following cases:
- 6-digit codes for turnover above ₹5 crores
- 4-digit for B2B supplies up to ₹5 crores
- Optional for turnover below ₹1.5 crores.
Steps to Search HSN/SAC Tax Rates
You can easily find out the corresponding GST rates for your products using our HSN code finder in three easy steps:
- Access the HSN code finder and enter the HSN code or the SAC code in the provided search bar
- Click the search button and the results will be displayed immediately
- Towards the right end corner of the results you can find the corresponding GST rate for particular services or goods.
Services Accounting Code (SAC) in GST
Service Accounting Code or SAC are codes associated with services. Just like HSN codes are for goods and SAC is for services provided. These codes are issued directly by the Central board of indirect tax and are used to classify each and every service. It is crucial to mention SAC while generating invoices for service related transactions.
SAC code has 6 digits and is covered under chapter 99. All the SAC codes start with 99. Subsequently the four digits explains the nature of the service. For better understanding let us look at an example:
SAC code has 6 digits and is covered under chapter 99. All the SAC codes start with 99. Subsequently the four digits explains the nature of the service. For better understanding let us look at an example:
995431 is the SAC code for demolition services.
- From the code the first two letters (99) represents the chapter and is common to all the SAC codes
- The next two numbers (54) represents the heading of the major service category
- The last two numbers (31) represent the service code of the specific nature of the service.
Application of HSN Code
HSN Code in International Trade
In international trade, HSN Codes are essential for the accurate classification of goods, which determines the applicable tariffs, trade policies, and international trade statistics. This uniform system helps in reducing ambiguities and discrepancies in trade practices between countries.
HSN Code in Domestic Taxation (GST)
Under the GST regime in India, HSN Codes are used to classify goods for tax purposes. This standardized system ensures that goods are taxed correctly and uniformly, which simplifies the tax compliance process for businesses and helps in reducing tax-related disputes.
HSN Code in Customs Procedures
Customs authorities use HSN Codes to identify products, apply the correct duty rates, and enforce trade policies. This system ensures that the correct duties are levied on imported and exported goods, thereby preventing revenue loss and ensuring compliance with international trade agreements.
Importance of HSN Code in Different Sectors
HSN Code in Import and Export
HSN Codes streamline the import and export process by providing a consistent classification system for goods. This helps in determining the correct duties and compliance requirements, thus facilitating smoother international trade operations.
HSN Code in Manufacturing
Manufacturers use HSN Codes to classify raw materials and finished products. This classification helps in ensuring compliance with tax regulations and aids in inventory management, cost calculation, and supply chain management.
HSN Code in Retail and Wholesale
Retailers and wholesalers rely on HSN Codes to classify their inventory accurately. This classification is crucial for determining the correct tax rates, managing inventory efficiently, and ensuring compliance with tax regulations.
How to Determine the Correct HSN Code
Tools and Resources for HSN Code Lookup
Various online tools and government portals provide HSN Code lookup services, which help businesses in determining the correct classification for their products. These tools simplify the process of finding the appropriate HSN Code, thereby ensuring accurate tax calculation and compliance.
Common Mistakes in HSN Code Classification
Misclassifying products under incorrect HSN Codes can lead to several issues, including incorrect tax calculations, compliance problems, and potential legal consequences. Businesses should be cautious and thorough when classifying their products to avoid such mistakes.
HSN Code and Taxation
HSN Code under GST (Goods and Services Tax)
Role of HSN Code in GST
HSN Codes play a critical role in the GST system by helping to identify the correct tax rates applicable to various goods. This classification ensures accurate tax collection and compliance with GST regulations, thus reducing the chances of tax evasion and disputes.
Impact of HSN Code on GST Rates
The GST rates for goods are determined based on their HSN Codes. Therefore, using the correct HSN Code is essential to avoid over or under-taxation. Accurate classification helps in maintaining consistency and transparency in the tax system.
HSN Code and Customs Duty
How HSN Code Affects Customs Duty
HSN Codes determine the customs duty rates applicable to imported and exported goods. This classification impacts the overall cost of trade, as the correct duty rates are applied based on the HSN Code of the goods.
Exemptions and Concessions Based on HSN Code
Certain goods classified under specific HSN Codes may be eligible for duty exemptions or concessions. These benefits can significantly impact the trade value of the goods and provide cost advantages to businesses.
HSN Code and Trade Compliance
Regulatory Framework for HSN Code
International Regulations (WCO, WTO)
HSN Codes are governed by international regulations set by the World Customs Organization (WCO) and the World Trade Organization (WTO). These regulations ensure that HSN Codes are standardized globally, facilitating smooth and consistent international trade practices.
National Regulations and Compliance Requirements
Countries have their own regulations for the use of HSN Codes, which ensure that businesses comply with national tax laws and trade requirements. Adhering to these regulations is crucial for avoiding legal issues and ensuring smooth business operations.
Challenges in HSN Code Compliance
Misclassification and Its Consequences
Incorrect classification of goods under HSN Codes can lead to several consequences, including fines, legal issues, and disruptions in trade operations. Businesses must ensure accurate classification to avoid these problems.
Case Studies on HSN Code Compliance Issues
Examining real-world case studies helps in understanding the importance of accurate HSN Code classification and compliance. These cases highlight the challenges faced by businesses and the potential consequences of misclassification.
Future of HSN Code
Updates and Revisions to the HSN Code
Recent Changes in HSN Code
Periodic updates to the HSN Code ensure it remains relevant and accurate in classifying new and evolving products. Staying updated with these changes is crucial for businesses to maintain compliance.
How Updates Affect Businesses
Updates to HSN Codes can impact businesses by changing the classification of their products, which may affect tax rates and compliance requirements. Businesses need to stay informed about these changes to avoid potential disruptions.
Digital Transformation and HSN Code
Automation in HSN Code Classification
Automation tools help businesses accurately classify products under the correct HSN Codes, reducing the risk of errors and ensuring compliance with tax regulations.
Role of AI and Machine Learning in HSN Code Management
Artificial Intelligence (AI) and Machine Learning (ML) technologies enhance the accuracy and efficiency of HSN Code classification and management. These technologies can process large volumes of data quickly and accurately, helping businesses maintain compliance.
Frequently Asked Questions (FAQs) about HSN Code
HSN Code and HS Code are often used interchangeably. HSN Code is the expanded form of HS Code, providing a more detailed classification system for goods.
HSN Codes for Various Services
Applying HSN Codes
HSN Codes for Various Products
Specialized HSN Code Information
