HSN Code List

Whether you are dealer of goods or services, the GST laws require you to make invoices with the corresponding HSN codes for products or SAC codes for services.

What are HSN codes?

HSN stands for Harmonized System of Nomenclature and is an internationally known method of naming, classifying and identifying products. In India HSN codes are used to identify goods and calculate GST.

Where should HSN and SAC codes be mentioned?

You should mention these codes when you register for GST, on your invoices and in your GST returns.

How does GST HSN code work?

The HSN list comprises about 5,000 commodity groups, each identified by a six-digit code, arranged in a structure that takes into account logic and legal necessities. It is defined by solid rules to achieve uniform classification.

HSN Worldwide

The HSN system is used in over 200 countries around the world. These codes are used because it is much more convenient to have a uniform classification, they offer a base for their customs tariffs and HSN codes simplify the collection of international trade statistics.

NOTE: Over 98% of the merchandise available in international trade is classified under the HSN structure.

The Harmonized System of Nomenclature number for each commodity is accepted by most of the countries, and the HSN number is the same for almost all goods. In some cases, the HSN nuumber varies based on the nature of the goods classified.

Understanding the HSN Code for GST in India

The HSN structure contains 21 sections that have 99 chapters, about 1244 heading and 5224 heading. Yes, that is a lot, and it all makes logical sense.

Each section is divided into Chapters.
Each Chapter is divided into Headings.
Each Heading is divided into Sub Headings.

Section and Chapter titles describe general categories of goods, while headings and subheadings describe products in detail.

Let’s take an example to understand this a bit more.

Nylon Moulding Powder, HSN code 39.08.90.10

First two digits (39) indicates the Chapter number for this category of articles.
Next two digits (08) indicates the heading number for this item.
Next two digits (90) indicates the subheading number for this product.
A 6 digits HSN code is accepted worlwide.
Last two digits (10) In India the HSN code has an extra 2 digits for further classification. It subclassifies the product tariff heading during import and export of supply.
You can scroll below for a HSN code for a GST list

Services Accounting Code (SAC) in GST

SAC or Service Accounting Codes are unique codes provided to recognise, measure and appropriately tax services.

For example:

Legal documentation and certification services concerning patents, copyrights and other intellectual property rights - 998213.

First 2 digits are the same for all services, (99).
The next 2 digits (82) represent the major nature of service, legal services in this case.
The last 2 digits (13) represent the detailed nature of the service. In this case, legal documentation for patents.

HSN in GST

HSN codes to be declared

Turnover	No. of digits of HSN to be declared
Up to 1.5 crore	0
1.5 crore- 5 crore	2
More than 5 crore	4

HSN codes have to be declared in every tax invoice issued by a taxpayer under GST.
The turnover for the previous year will be considered as a base for the number of HSN digits to be used.

All 8 digits of HSN code is mandatory in case of export and imports under the GST legislation.

Which businesses are not required to use HSN code list while selling goods?

Businesses with an annual turnover smaller than Rs. 1.5 Crores do not have to use HSN codes to sell goods. Along with them, a business registered under the composition scheme is also not required to mention HSN codes on invoices.

How can I find my product in HSN list and its relevant HSN Code?

If you are doing a HSN code search for a HSN code list PDF file that you want to keep on your computer, you can download a list of both HSN and SAC codes from here.

What is UQC?

UQC stands for Unique Quantity Code. In simple terms, this means it is a unit of measurement. A more practical example is 1 liter of oil. In GST, any tax invoice, credit note, debit note must have UQC or quantity unit description, for example, 100 meters of fabric.

How to find HSN code list?

Due to the diversity of goods, HSN codes have been categorised in chapters. Have a look at the table below to identify under which category your products fall and use this website
https://cbic-gst.gov.in/gst-goods-services-rates.html to identify the HSN code list for GST you need for your business in India.

Chapter 1	Live Animals, Bovine & Poultry
Chapter 2	Meat & Edible Offal of Animals
Chapter 3	Fish Meat & Fillets
Chapter 4	Eggs, Honey & Milk Products
Chapter 5	Non Edible Animal Products
Chapter 6	Live Trees & Plants
Chapter 7	Vegetables
Chapter 8	Fruits & Dry Fruits
Chapter 9	Tea, Coffee & Spices
Chapter 10	Edible Grains
Chapter 11	Milling Industry Products
Chapter 12	Oil Seeds, Fruit & Part of Plants
Chapter 13	Gums, Resins, Vegetable SAP & Extracts
Chapter 14	Vegetable Material & Products
Chapter 15	Fats, Oils & Waxes their Fractions
Chapter 16	Preserved/Prepared Food Items
Chapter 17	Sugar, Jaggery, Honey & bubble Gums
Chapter 18	Chocolate & Cocoa Products
Chapter 19	Pizza, Cake, Bread, Pasta & Waffles
Chapter 20	Edible Plants - Fruits, Nuts & Juices
Chapter 21	Tea & Coffee Extract & Essence
Chapter 22	Water - Mineral & Aerated
Chapter 23	Flours, Meals & Pellets
Chapter 24	Tobacco, Stemmed & Stripped
Chapter 25	Salts & Sands
Chapter 26	Mineral Ores & Slags
Chapter 27	Fossil Fuels - Coal & Petroleum
Chapter 28	Gases & Non Metals
Chapter 29	Hydrocarbons - Cyclic & Acyclic
Chapter 30	Drugs & Pharmaceuticals
Chapter 31	Fertilisers
Chapter 32	Tanning & Colouring Products
Chapter 33	Essential Oils, Beauty Products
Chapter 34	Soaps, Waxes, Polish products
Chapter 35	Casein, Albumin, Gelatin, Enzymes
Chapter 36	Propellants, Explosives, Fuses, Fireworks
Chapter 37	Photographic & Cinematographic Films
Chapter 38	Insecticides, Artificial Carbon & Graphite
Chapter 39	Polymers, Polyethylene, Cellulose
Chapter 40	Rubber, Plates, Belt, Condensed Milk
Chapter 41	Raw hides & Skins, Leather
Chapter 42	Trunks, Suit-cases, Vanity cases
Chapter 43	Raw Fur Skins, Articles of apparel
Chapter 44	Fuel wood, Wood Charcoal
Chapter 45	Natural Cork, Shuttlecock Cork
Chapter 46	Plaiting Materials, Basketwork
Chapter 47	Mechanical & Chemical woodpulp
Chapter 48	Newsprint, Uncoated paper & paperboard
Chapter 49	Printed Books, Brochures, Newspapers
Chapter 50	Silk Worm Cocoon, Yarn, Waste & Woven Fabrics
Chapter 51	Wool materials & Waste, Animal Hairs
Chapter 52	Cotton materials, Synthetics & Woven fabrics
Chapter 53	Flex raw, Vegetable materials & Paper yarn
Chapter 54	Synthetic felaments, Woven fabrics & Rayons
Chapter 55	Synthetic felament tows & Polyster staple fiber
Chapter 56	Towels, Napkins, ropes & Netting materials
Chapter 57	Carpets & Floor coverings textile Handlooms
Chapter 58	Labels, Badges, Woven pile & Chennile, Terry towelings
Chapter 59	Rubberised textile fabrics, Convayer belts
Chapter 60	Pile,Wrap Knit,Tarry & Croched fabrics
Chapter 61	Men & Women Clothing
Chapter 62	Men & Women Jackets, Coats & Garments
Chapter 63	Blankets & Bedsheets
Chapter 64	Shoes & Footwear Products
Chapter 65	Hats & Accessories
Chapter 66	Umbrellas & Accessories
Chapter 67	Artificial flowers, Wigs & False Beards
Chapter 68	Monumental & Building Stones
Chapter 69	Bricks, Blocks & Ceramics
Chapter 70	Glasses, Mirrors, Flasks
Chapter 71	Pearls, Diamonds, Gold, Platinum
Chapter 72	Iron, Alloys, Scrap & Granules
Chapter 73	Iron tube, piles & Sheets
Chapter 74	Copper Mattes, Rods, Bars, Wires, Plates
Chapter 75	Nickel Mattes & Unwrought Nickel
Chapter 76	Unwrought Aluminium- Rods, Sheets & Profiles
Chapter 77	Unwrought Lead - Rods, Sheets & Profiles
Chapter 78	Unwrought Zinc - Rods, Sheets & Profiles
Chapter 79	Unwrought Tin - Rods, Sheets & Profiles
Chapter 80	Magnesium, Cobalt, Tungsten Articles
Chapter 81	Hand Tools & Cutlery
Chapter 82	Locks, Metal Mountings & Fittings
Chapter 83	Hand Tools & Cutlery
Chapter 84	Locks, Metal Mountings & Fittings
Chapter 85	Industrial Machinery
Chapter 86	Electrical Parts & Electronics
Chapter 87	Railway Locomotives & Parts
Chapter 88	Tractors & Motor Vehicles
Chapter 89	Balloons, Parachutes & Airlift Gear
Chapter 90	Cruise Ships & Boats
Chapter 91	Medical, Chemical & Astronomy
Chapter 92	Watches & Clocks
Chapter 93	Musical Instruments
Chapter 94	Military Weapons & firearms
Chapter 95	Furniture, Bedding & lighting
Chapter 96	Children Toys, Table & Board Games & Sports Goods
Chapter 97	Pencil Lighter Toiletries
Chapter 98	Paintings Decoratives Sculptures
Chapter 99	Machinery Lab Chemicals Drugs Medicines
Chapter 100	Services

GST Rate Structure

Along the correct HSN and SAC codes, you need to add the correct GST tax rates to your items to ensure your invoices are correct.The GST tax structure has been set as follows:

Tax Rate	Description
0% (NIL)	Zero rate, applied to half of the items in the consumer price index(CPI) basket, such as food grains, cereal and other food essentials.
0.25%	Cut and semi-polished stones fall under this tax slab. (modified from 3% to 0.25% by the GST Council)
5%	Lower rate, applied to the rest of the items in the CPI basket plus other items of mass consumption.
12%	Standard rate, applied to products such as processed foods and computers.
18%	Products such as capital goods, hair oil, toothpaste and soaps, and industrial intermediaries fall under this tax slab.
28%	Higher rate, applied to luxury items such as small and premium cars, cigarettes and aerated drinks, high end motorcycles, refrigerators and AC's plus other consumer durables.

We hope this article helped you understand more about HSN and SAC codes for your business. Be sure to stay up to date with the latest news on GST. Keep your life easy and let Sleek Bill GST ready billing software handle your invoicing problems.

Remember, you can download a PDF list of HSN codes || here ||

GST Explained

What is GST bill?

GST, short for Goods and Services tax, is a new tax that will be imposed on the sale and purchase of goods and services in India. GST is meant to replace all taxes in India with a single unified tax applied to value addition instead of the total value of the product at each stage in the supply chain.

This method provides credit for the input tax paid on the purchase of goods and services, which can be offset with the tax to be paid on the supply of goods and services. As a result, this reduces the overall manufacturing cost, with the end customer paying less.

Which goods and services are exempted from GST?

With certain current taxes remaining, the following goods and services will be fully or partially exempted from the GST

What are the GST benefits for your business?

Free movement of goods: Business owners will be able to sell more in other states without having to worry about interstate transaction costs. With GST, the entry tax will be eliminated, which will save time and money spent.

What taxes does GST replace?

Currently, there are many indirect taxes that both the state and central governments are collecting on every purchase and sale.

How will GST work in practice?

The GST will follow a similar model with the one before it

What is the proposed GST rate?

GST will have a 4-tier tax structure

Why is GST being introduced in India?

One of the main reasons for GST being introduced in India is the tax burden that falls both on companies and consumers. With the current tax system, there are multiple taxes added at each stage of the supply chain, without taking credit for taxes paid at previous stages. As a result, the end cost of the product does not clearly show the actual cost of the product and how much tax was applied. This cascading structure is too complex and inefficient.

How will Inter-state transactions work in GST?

For inter-state transactions, the Centre will levy Integrated GST (IGST), which is equal to the average of the CGST and SGST rates. After applying IGST, CGST and SGST credits received from purchases, the seller will then pay the remaining IGST on the added value.

What is the exemption limit in the GST?

Businesses with turnover revenue of 20 lakhs and above will have to register and file for GST returns, with a threshold of 10 lakhs for businesses in the north east and hill states.

How will imports be handled in GST?

A combination of CGST and SGST will be applied to the import of goods and services that come to India. Tax benefits and credits will be given to the state where the imported goods and services are consumed.