HSN code stands for “Harmonized System of Nomenclature”. This system has been introduced for the systematic classification of goods all over the world. HSN code is a 6-digit uniform code that classifies 5000+ products and is accepted worldwide. It was developed by the World Customs Organization (WCO) and it came into effect from 1988.
It has about 5,000 commodity groups, each identified by a six-digit code, arranged in a legal and logical structure. It is supported by well-defined rules to achieve uniform classification.
The main purpose of HSN is to classify goods from all over the World in a systematic and logical manner. This brings in a uniform classification of goods and facilitates international trade.
The HSN system is used by more than 200 countries and economies for reasons such as:
Over 98% of the merchandise in international trade is classified in terms of the HSN.
Harmonized System of Nomenclature number for each commodity is accepted by most of the countries. The HSN number remains same for almost all goods. However, HSN number used in some of the countries varies little, based on the nature of goods classified.
India is a member of World Customs Organization(WCO) since 1971. It was originally using 6-digit HSN codes to classify commodities for Customs and Central Excise. Later Customs and Central Excise added two more digits to make the codes more precise, resulting in an 8 digit classification.
The HSN structure contains 21 sections, with 99 Chapters, about 1,244 headings, and 5,224 subheadings.
For example:
Handkerchiefs made of Textile matters 62.13.90
India has 2 more digits for a deeper classification.
If the handkerchiefs are made from a man-made fibre, then the HSN code is 62.13.90.10.
If the handkerchiefs are made from silk or waste from silk., then the HSN code is 62.13.90.90.
Like goods, services are also classified uniformly for recognition, measurement and taxation. Codes for services are called Services Accounting Code or SAC.
For example:
Legal documentation and certification services concerning patents, copyrights and other intellectual property rights-- 998213
| Turnover*
|
No. of digits of HSN to be declared
|
| Upto 1.5 crore
|
0 |
| 1.5 crore- 5 crore
|
2 |
| More than 5 crore
|
4 |
HSN codes to be declared from 1st April 2021:
(Vide CGST notification number 78/2020 dated 15th October 2020)
| Turnover*
|
Type of Invoice 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 |
*Annual aggregate turnover for the previous financial year, i.e., for reporting invoice in FY 2021-22, turnover to be referred must be of FY 2020-21.
The purpose of HSN codes is to make GST systematic and globally accepted.
HSN codes will remove the need to upload the detailed description of the goods. This will save time and make filing easier since GST returns are automated.
A dealer or a service provider must provide HSN/SAC wise summary of sales in his GSTR-1 if his turnover falls in above slabs.
| Sections | HSN Code List for |
|---|---|
| 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 |
| Section 5 | Mineral Products |
| Section 6 | Product of the chemicals or allied Industries |
| Section 7 | Plastics and articles thereof, Rubber and articles thereof |
| Section 8 | Raw hides and skins, Leather, Furskins and articles thereof, saddlery and harness, travel goods, handbags and similar containers, articles of animal gut ( other than silk-worm gut ) |
| Section 9 | Wood and articles of wood, Wood charcoal, Cork and articles of cork, Manufacturers of straw, of Esparto or of other Plaiting Materials, Basketwork and Wickerwork |
| Section 10 | Pulp of wood or of other Fibrous Cellulosic Material, Recovered ( Waste and scrap ) paper or paperboard, paper and paperboard and articles thereof |
| Section 11 | Textile and textile articles |
| Section 12 | Footwear, Headgear, Umbrellas, Sun Umbrellas, Walking-sticks, seat-sticks, whips, riding-crops and parts thereof, Prepared feathers and articles made therewith, Artificial flowers, Articles of human hair |
| Section 13 | Articles of stone, plaster, cement, asbestos, mica, or similar materials, ceramic products, glass and glassware |
| Section 14 | Natural or cultured pearls, Precious or semi-precious stones, precious metals, Metal clad with precious metal, and articles thereof, Imitation Jewellery, Coins |
| Section 15 | Base Metals and articles of Base Metal |
| Section 16 | Machinery and mechanical appliances, electrical equipment, parts thereof, sound recorders and reproducers, television image and souch recorders and reproducers, and Parts and Accessories of such article |
| Section 17 | Vehicles, Aircraft, Vessels and Associated Transport Equipment |
| Section 18 | Optical, Photographic, Cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus, clocks and watches, musical instruments, parts and accessories thereof |
| Section 19 | Arms and ammunition, parts and accessories thereof |
| Section 20 | Miscellaneous Manufactured Articles |
| Section 21 | Works of art, Collectors' Pieces and antiques |
Please visit our handy HSN Calculator to find out both HSN codes of goods & SAC codes of services.
UQC stands for Unique Quantity Code. In simple terms, it is a unit of measurement such as 1 kilogramme of wheat, 1 litre of oil etc.
As per CGST Rules, any tax invoice, credit note, debit note must have UQC or quantity unit description.
For example-
100 metres of fabric
Refer our article on UQC for more information.
To minimize errors while filing GST returns, it’s important to know the right HSN code for your product.
Use ClearTax HSN Calculator to find out the HSN code for your product. Our ClearTax GST Software has all the HSN codes inbuilt. You need to select the items you sell only once in the Item Master. Once you are done, your HSN code will be automatically populated in all your invoices and returns.
Simplify your GST Filing Process with ClearTax GST Software.
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Disclaimer: Rates given below are updated up to the GST (Rate) notification no. 05/2020 dated 16th October 2020 to the best of our information. We have sourced the HSN code information from the master codes published on the NIC's GST e-Invoice system.
There may be variations due to updates by the government. Kindly note that we are not responsible for any wrong information. If you need information about the "Effective Date" for every GST or cess rates, then please visit the CBIC website.
Do much more than verifying HSN/SAC codes with ClearTax GST, India's most trusted billing and GST solution where reconciliation is made easy through intelligent inbuilt validations and tools.
| Chapter | Description | HSN Code | Rate (%) | CESS (%) | Effective Date | Rate Revision |
|---|
Chapter
Description
The HSN code you entered is not on record or is invalid. Please try with another HSN/SAC Code OR Try changing the keywords.
If you are looking for clothes try synonyms like garments, textile, handloom, etc.
| Chapter | Description | HSN Code | Rate (%) | CESS (%) | Effective Date | Rate Revision |
|---|
Chapter
Description
We couldn't find any SAC Code for your search. Try changing the keywords.
For e.g. if you are looking for clothes try synonyms like garments, textile, handloom, etc.
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