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Data updated: Updated for GST 2.0

🔎 HSN / SAC Code Finder

✓ Verified: 2026-03-01 Source: CBIC 12% & 28% slabs abolished

What is HSN Code?

HSN stands for Harmonised System of Nomenclature, an internationally adopted system of names and numbers to classify traded products. Developed by the World Customs Organization (WCO), the HSN code is used by over 200 countries and covers more than 5,000 commodity groups, each identified by a six-digit code arranged in a logical and hierarchical structure. In India, HSN codes are mandatory for GST invoicing and return filing, and the Indian version extends the international six-digit code to eight digits for more granular classification of goods and services.

Under the Goods and Services Tax (GST) regime in India, every taxable supply of goods must be accompanied by the correct HSN code on invoices, e-way bills, and GST returns (GSTR-1, GSTR-3B). The HSN code determines the applicable GST rate for a product, making accurate classification essential for compliance. With the GST 2.0 reforms introduced after the 56th GST Council meeting, the rate structure has been simplified from seven slabs (0%, 0.25%, 3%, 5%, 12%, 18%, 28%) to five slabs (0%, 0.25%, 3%, 5%, 18%, 40%), abolishing the 12% and 28% rates entirely. This makes it even more critical for businesses to identify and apply the correct HSN code to ensure proper tax liability.

15,000+ HSN Codes in India
200+ Countries Using HSN
1.4 Cr+ GST Taxpayers in India
6 GST Rate Schedules

HSN Code Structure Explained

The HSN code follows a hierarchical structure where each pair of digits narrows down the classification progressively. Understanding this structure helps businesses quickly locate the correct code for their products. The first two digits identify the chapter, the next two identify the heading, and the final two identify the sub-heading. India further extends the code to eight digits for even more specific product identification, which is mandatory for businesses with annual turnover above Rs. 5 crore.

2 Digits
Chapter
Broad category of goods (e.g., Chapter 71 = Precious metals, stones and pearls). There are 97 chapters in the HSN system covering all categories of goods.
Example: 71 = Natural or cultured pearls, precious stones, metals
4 Digits
Heading
Sub-category within the chapter. Required for B2C invoices for businesses with turnover between Rs. 1.5 Cr and Rs. 5 Cr.
Example: 7108 = Gold (unwrought, semi-manufactured, or powder form)
6 Digits
Sub-heading
Internationally standardized product classification. Mandatory for all B2B invoices and for businesses with turnover above Rs. 5 Cr.
Example: 7108.12 = Gold, non-monetary, semi-manufactured form
8 Digits
Tariff Item
India-specific further classification. Required for detailed customs tariff and GST return filing for large businesses.
Example: 7108.12.10 = Gold bars and rods, non-monetary

Why Correct HSN Code Classification Matters

Using the correct HSN code is not merely a compliance formality; it directly impacts the GST rate applied to your supply, the accuracy of your return filings, and your eligibility for input tax credit. A wrong HSN code can lead to underpayment or overpayment of tax, both of which carry penalties under the CGST Act. Under Section 122 of the CGST Act, a penalty of Rs. 10,000 or the tax amount (whichever is higher) can be levied for incorrect classification. Furthermore, mismatched HSN codes between the supplier and recipient in GSTR-2B can cause ITC claims to be rejected, leading to cash flow issues and additional interest liability.

Accurate GST Rate
Correct HSN code ensures you charge the right GST rate, avoiding over-taxation or under-taxation of your supplies.
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Avoid Penalties
Wrong HSN codes can attract penalties up to Rs. 25,000 under CGST Act Section 125 for misclassification of goods.
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Smooth ITC Claims
Matching HSN codes between supplier and buyer ensures seamless input tax credit claims in GSTR-2B.
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Easier Compliance
Proper classification reduces GST audit risks, speeds up return processing, and keeps your compliance record clean.

How to Find Your HSN Code

Finding the correct HSN code for your product is simple with our free HSN Code Finder tool. Follow these step-by-step instructions to locate the right code quickly and accurately. Our database covers all 15,000+ HSN codes notified by the Central Board of Indirect Taxes and Customs (CBIC) and is updated regularly to reflect the latest GST rate changes, including the GST 2.0 rate structure effective from 2026.

1
Enter Your Product Name or Code
Type the product name (e.g., "gold jewellery", "rice", "laptop") or the HSN code you already know in the search box above. Our smart search will start showing results as you type.
2
Browse or Filter Results
Use the GST rate filter pills (0%, 0.25%, 3%, 5%, 18%, 40%) to narrow down results. Click on any result row to expand and see full details including CGST/SGST/IGST breakdown.
3
Verify and Use
Click the "Copy" button to copy the HSN code to your clipboard. Use it on your invoices, e-way bills, and GST returns. Always cross-verify with the official CBIC notification for your specific product.

HSN Code vs SAC Code: What is the Difference?

While HSN codes are used for classifying goods (products), SAC (Services Accounting Code) codes are used for classifying services under GST. Both serve the same purpose of standardizing classification, but they apply to different types of supplies. HSN codes follow the international WCO system with chapters 01-97, while SAC codes follow a separate chapter 99 structure specifically designed for services. For example, HSN code 8471 classifies computers (goods), while SAC code 9983 classifies IT/ITeS services. Under GST 2.0, both HSN and SAC codes determine the applicable tax rate, and businesses must use the correct code type depending on whether they are supplying goods or services.

FeatureHSN CodeSAC Code
Full FormHarmonised System of NomenclatureServices Accounting Code
Used ForClassification of GoodsClassification of Services
Chapters01 to 9799
Digit Format2, 4, 6, or 8 digits6 digits
Developed ByWorld Customs Organization (WCO)Government of India
Example7108 - Gold (unwrought)9983 - IT/ITeS services
Mandatory ForGST invoicing of goodsGST invoicing of services

Frequently Asked Questions (FAQ) About HSN Codes

What is HSN code in GST?
HSN code (Harmonised System of Nomenclature) is an internationally recognized product classification system used under GST in India to identify goods and determine their applicable tax rate. Each product is assigned a unique 2, 4, 6, or 8-digit numeric code that corresponds to a specific GST rate slab. Under GST 2.0 (post 56th Council), the applicable rate slabs are 0%, 0.25%, 3%, 5%, 18%, and 40%, with the 12% and 28% slabs having been abolished.
Is HSN code mandatory for GST invoices?
Yes, HSN code is mandatory on GST invoices depending on your annual turnover. Businesses with turnover above Rs. 5 crore must mention 6-digit HSN codes for all supplies. Businesses with turnover between Rs. 1.5 crore and Rs. 5 crore must mention 4-digit HSN codes for B2B supplies and may use 4-digit codes for B2C supplies. For turnover up to Rs. 1.5 crore, HSN codes are optional but recommended. For services, SAC codes are used instead of HSN codes.
How many digits should I use in HSN code?
The number of HSN digits depends on your business turnover and the type of supply. For businesses with annual turnover above Rs. 5 crore, 6-digit HSN codes are mandatory. For businesses with turnover between Rs. 1.5-5 crore, 4-digit codes are required for B2B invoices. Small businesses (turnover up to Rs. 1.5 crore) may use 2-digit codes or none at all, though using full 6-digit codes is always recommended for accuracy and compliance.
What is the penalty for wrong HSN code in GST?
Using an incorrect HSN code can attract penalties under the CGST Act. Under Section 122, a penalty of Rs. 10,000 or the tax amount involved (whichever is higher) can be levied for supplying incorrect information in returns. Under Section 125, a general penalty up to Rs. 25,000 can be imposed for misclassification. Additionally, wrong HSN codes leading to underpayment of tax will require payment of the differential tax along with interest at 18% per annum from the due date.
What is the difference between HSN and SAC code?
HSN codes classify goods (products) and follow the international WCO system with chapters 01-97, while SAC (Services Accounting Code) codes classify services and fall under chapter 99. For example, HSN 8471 is for computers (goods), while SAC 9983 is for IT services. Both codes determine the GST rate, and businesses dealing in both goods and services need to use both types of codes on their invoices and GST returns.
When were 12% and 28% GST slabs abolished?
The 12% and 28% GST rate slabs were abolished following the 56th GST Council meeting recommendations. Items previously taxed at 12% were rationalized to either 5% or 18%, while items at 28% were moved to either 18% (common use items) or the new 40% sin/luxury rate. This simplification reduced the number of GST rate slabs from seven to five (0%, 0.25%, 3%, 5%, 18%, 40%), making compliance easier for businesses across India.
Can I use the same HSN code for different products?
No, each product has a unique HSN code. However, products within the same category may share the same 2-digit or 4-digit HSN prefix. For example, gold (7108) and silver (7106) share the same chapter (71) but have different headings. Using a generic HSN code for a specific product is considered misclassification. You should always use the most specific 6-digit or 8-digit code that accurately describes your product to ensure correct GST rate application.
Where can I find the official HSN code list?
The official HSN code list is published by the Central Board of Indirect Taxes and Customs (CBIC) on their website (cbic.gov.in). You can also find HSN codes in the GST rate schedules (Notifications 09/2025-CT Rate and subsequent amendments). Our HSN Code Finder tool above provides a searchable database of all HSN codes with their applicable GST 2.0 rates, verified against the latest CBIC notifications for accuracy.
What is GST 2.0 rate structure?
GST 2.0 is the simplified rate structure effective from 2026 after the 56th GST Council recommendations. It consists of five rate slabs: 0% (Nil/Exempt - Schedule VI), 0.25% (Rough diamonds - Schedule V), 3% (Precious metals - Schedule IV), 5% (Essentials/Merit - Schedule I), 18% (Standard - Schedule II), and 40% (Sin/Luxury - Schedule III). The 12% and 28% slabs have been abolished, with items rationalized to the remaining slabs to reduce compliance complexity.
Is HSN code required for e-way bill?
Yes, HSN code is mandatory for generating e-way bills. When creating an e-way bill on the EWB portal, you must provide the HSN code for each consignment item. The HSN code helps the GST system verify the applicable rate and facilitates seamless movement of goods across state borders. Without a valid HSN code, the e-way bill cannot be generated, which may result in detention of goods and penalties under Section 129 of the CGST Act.
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