What is HSN Code?
Harmonised System of Nomenclature — a 6–8 digit international product classification code used in GST invoices to determine the correct tax rate.
HSN stands for Harmonised System of Nomenclature, developed by the World Customs Organization (WCO). India adopted HSN for GST classification in 2017, extending the 6-digit international code to 8 digits for granular product identification.
Under GST, HSN codes are mandatory on invoices based on turnover: businesses with turnover above ₹5 crore must use 6-digit HSN; ₹1.5–5 crore need 4 digits; below ₹1.5 crore are exempt (but it is best practice to include it).
HSN codes directly determine the GST rate applied to a product. Example: HSN 7208 (flat-rolled steel products) attracts 18% GST; HSN 1001 (wheat) is exempt. Getting the HSN wrong means wrong tax rates, which can trigger GST audit notices.
For B2B buyers posting a Requirement on VyaparSethu, including the HSN code in your requirement lets suppliers quote the exact product grade and GST-inclusive price, eliminating back-and-forth over tax classification.
Use our free HSN Lookup tool at vyaparsethu.com/tools/hsn-lookup to find the correct code for any product using plain-language search.
Frequently Asked Questions
What is HSN code in GST?
HSN (Harmonised System of Nomenclature) is a product classification code used in GST invoices. It tells the tax authority which GST rate applies to the goods being sold.
How many digits is HSN code?
HSN codes in India are 8 digits. Businesses with turnover above ₹5 crore must use 6 digits on invoices; smaller businesses may use 4 digits.
Where can I find HSN code for my product?
Use the CBIC's HSN search on GST portal, or VyaparSethu's free HSN Lookup tool at vyaparsethu.com/tools/hsn-lookup.
What is the penalty for wrong HSN code?
Incorrect HSN codes can lead to wrong tax computation, GST notices, and penalties under Section 122 of the CGST Act.
Related Terms
What is GST?
Goods and Services Tax — India's unified indirect tax that replaced excise duty, VAT, and service tax in July 2017. Applies to all B2B transactions above ₹40 lakh turnover.
What is a GST Invoice (Tax Invoice)?
A tax invoice is the mandatory legal document issued by a GST-registered supplier at the time of supply. It enables the buyer to claim Input Tax Credit (ITC).
What is a Pro Forma Invoice?
A preliminary invoice sent before goods are dispatched. It confirms price, quantity, and terms — used to get buyer approval and arrange advance payment or LC.
Put this knowledge to work
Post a Requirement — verified suppliers quote with proper GST invoices, HSN codes, and Protected Payment on every deal.