HSN Code List India 2025: Complete Guide + How to Find the Right Code
If you've ever stared at a GST invoice and wondered what that 4, 6, or 8-digit number under "HSN Code" means — or panicked during GSTR-1 filing when the portal demanded one — this guide is for you.
- HSN (Harmonised System of Nomenclature) classifies goods; the equivalent for services is SAC (Services Accounting Code).
- Required digits depend on turnover: 4-digit HSN up to ₹5 Crore turnover, 6-digit mandatory above ₹5 Crore.
- From February 2025, GSTR-1 only accepts HSN codes from a portal dropdown — manual entry is disabled.
- From April 2025, GSTR-1 Table 12 is split into separate B2B and B2C tabs that cannot be merged.
- Wrong HSN codes risk the wrong GST rate, blocked buyer ITC, and a Section 122 penalty of ₹10,000 or the tax evaded, whichever is higher.
HSN codes are not optional. They determine the GST rate on your product, appear on every invoice you issue, and from 2025 onwards, must be selected from a dropdown in GSTR-1 — manual entry is gone. Getting them wrong can mean the wrong tax rate on your invoices, penalty notices, and blocked ITC for your buyers.
What Is an HSN Code?
HSN stands for Harmonised System of Nomenclature — an internationally standardised system for classifying goods, developed by the World Customs Organisation (WCO) and used in over 200 countries.
In India's GST system, HSN codes:
- Classify goods into specific categories
- Determine which GST rate slab applies (0%, 5%, 12%, 18%, or 28%)
- Must appear on tax invoices
- Must be reported in GSTR-1 (Table 12)
HSN vs SAC — What's the Difference?
| Feature | HSN Code | SAC Code |
|---|---|---|
| Full form | Harmonised System of Nomenclature | Services Accounting Code |
| Applies to | Goods | Services |
| Digits | 2, 4, 6, or 8 digits | 6 digits (always) |
| Governed by | WCO (global), CBIC (India adaptation) | CBIC (India only) |
| Example | 8517 (mobile phones) | 998314 (IT software services) |
If your business supplies both goods and services, your invoice will have HSN codes for goods and SAC codes for services — both in the same document.
How Many HSN Digits Does Your Business Need?
This is where most businesses get confused. The requirement depends on your annual turnover:
| Annual Turnover | Invoice Requirement | GSTR-1 Requirement |
|---|---|---|
| Up to ₹5 Crore (B2C only / Composition) | Optional on invoice | 4-digit HSN in GSTR-1 |
| Up to ₹5 Crore (B2B) | 4-digit HSN mandatory | 4-digit HSN in GSTR-1 |
| Above ₹5 Crore | 6-digit HSN mandatory | 6-digit HSN in GSTR-1 |
| Exporter / all supplies | 8-digit HSN recommended | 8-digit for customs |
What Changed in HSN Reporting for GSTR-1 in 2025?
FY 2025–26 has brought the most significant changes to how HSN codes are reported in GSTR-1:
Change 1 — HSN Dropdown Only (From February 2025)
Manual entry of HSN codes in GSTR-1 is no longer allowed. You must select from the portal's built-in HSN dropdown. This was introduced to prevent typographical errors and wrong-code filing.
Change 2 — Table 12 Bifurcated Into B2B and B2C (From April 2025)
Previously, you could report all HSN data in one combined Table 12. Now, there are two separate tabs: Table 12A — HSN summary for B2B supplies, Table 12B — HSN summary for B2C supplies
You cannot merge rows across both types. Attempting to do so results in return rejection.
Change 3 — Phase 3 Enforcement of 6-Digit HSN
From May 2025, the portal enforces 6-digit HSN for all taxpayers with turnover > ₹5 Crore in B2B transactions. The system rejects 4-digit codes in B2B Table 12 for these taxpayers.
How to Find the Right HSN Code for Your Product
Method 1 — Use the CBIC GST Portal HSN Search
The most reliable source is the official CBIC portal:
Go to cbic-gst.gov.in → HSN/SAC
Search by product description (e.g., "mobile phone", "cotton shirt", "bicycle")
The tool shows the chapter, heading, subheading, and applicable GST rate
Always use the most specific (longest) code that accurately describes your product
Method 2 — Navigate the Chapter Structure
HSN codes follow a hierarchical structure:
- First 2 digits = Chapter (broad category, e.g., Chapter 85 = Electrical Machinery)
- First 4 digits = Heading (narrower, e.g., 8517 = Telephone sets, smartphones)
- First 6 digits = Subheading (more specific)
- All 8 digits = Full item-level code (most specific)
Method 3 — Use the GST Portal's HSN Dropdown in GSTR-1
When filing GSTR-1, the portal's Table 12 dropdown is searchable. Type keywords from your product description and select the matching code.
Common Misclassification Traps
- Printers — office inkjet printers are 8443, not 8477 (which is for plastic/rubber moulding machines)
- Smartphones — 8517 (not 8525, which is transmission apparatus)
- LED lights — 9405 (lamps and lighting fittings), not 8543
- Solar panels — 8541 (photovoltaic cells), GST rate: 12%
- Ayurvedic medicines — 3004 (medicaments), not 3006 or food category
- Furniture — Chapter 94, but specific code varies by material and type
When in doubt, consult a CA or GST practitioner. Misclassification penalties under Section 122 of CGST Act can be up to ₹10,000 or the tax evaded — whichever is higher.
Chapter-Wise HSN Reference for Common Categories
| Chapter | Category | Common Items |
|---|---|---|
| 1–5 | Live animals & animal products | Meat, fish, dairy, eggs, honey |
| 6–14 | Vegetable products | Vegetables, fruits, grains, spices, tea |
| 15 | Animal/vegetable fats & oils | Edible oils, butter, ghee |
| 16–24 | Food preparations, beverages | Processed foods, fruit juices, soft drinks, alcohol |
| 25–27 | Mineral products & fuels | Coal, petroleum, cement, salt, sand |
| 28–38 | Chemical products | Fertilizers, soaps, plastics raw materials |
| 39–40 | Plastics & rubber | Plastic articles, rubber products, tyres |
| 41–43 | Leather & travel goods | Leather bags, footwear uppers, fur |
| 44–46 | Wood, cork, paper | Furniture wood, paper, cardboard |
| 47–49 | Paper products & print | Newspapers, books, printed materials |
| 50–63 | Textiles & apparel | All fabrics, garments, home textiles |
| 64–67 | Footwear & headwear | Shoes, sandals, hats, umbrellas |
| 68–70 | Stone, glass, ceramics | Tiles, glassware, ceramics |
| 71 | Precious metals & jewellery | Gold, silver, diamonds, gems |
| 72–83 | Base metals | Iron, steel, copper, aluminium products |
| 84 | Industrial machinery | Engines, pumps, machinery, computers |
| 85 | Electrical machinery | Motors, generators, smartphones, TVs, LEDs |
| 86–89 | Transport equipment | Railway, vehicles (Ch. 87), ships, aircraft |
| 90 | Instruments & apparatus | Medical devices, optical, measuring |
| 91–97 | Miscellaneous | Clocks, furniture, toys, artwork, sports goods |
HSN Codes & GST Rates for the Most Common Items
| Product | HSN Code | GST Rate |
|---|---|---|
| Smartphones / mobile phones | 8517 | 12% |
| Laptops / computers | 8471 | 18% |
| LED TVs | 8528 | 18% |
| Air conditioners | 8415 | 28% |
| Refrigerators | 8418 | 28% |
| Solar panels (PV cells) | 8541 | 12% |
| Cement (OPC / PPC) | 2523 | 28% |
| Steel bars / rods (TMT) | 7213 | 18% |
| Edible oils (refined sunflower) | 1512 | 5% |
| Wheat / rice (branded) | 1001 / 1006 | 5% |
| Sugar | 1701 | 5% |
| Tea (black, packaged) | 0902 | 5% |
| Cotton fabrics | 5208 | 5% |
| Readymade garments (≤₹1,000) | 6109 | 5% |
| Readymade garments (>₹1,000) | 6109 | 12% |
| Footwear (≤₹1,000/pair) | 6401–6405 | 5% |
| Footwear (>₹1,000/pair) | 6401–6405 | 12% |
| Toys | 9503 | 12% |
| Books (printed) | 4901 | 0% (exempt) |
| Medicines / drugs | 3004 | 5% or 12% |
| Medical devices (diagnostic) | 9027 | 12% |
| Gold jewellery | 7113 | 3% |
| Diamonds (cut & polished) | 7102 | 0.25% |
| Petroleum products | 2710 | N/A (outside GST) |
SAC Codes for Common Services
| Service | SAC Code | GST Rate |
|---|---|---|
| IT / software development | 998314 | 18% |
| Consulting / management services | 998311 | 18% |
| Legal services | 998211 | 18% |
| Accounting / bookkeeping | 998222 | 18% |
| Advertising services | 998361 | 18% |
| Freight / logistics (road) | 996511 | 5% (no ITC) or 12% |
| Restaurant services (non-AC) | 996331 | 5% (no ITC) |
| Restaurant services (AC) | 996331 | 18% |
| Hotel accommodation (<₹1,000/day) | 996311 | 0% |
| Hotel accommodation (₹1,000–₹7,500) | 996311 | 12% |
| Hotel accommodation (>₹7,500) | 996311 | 18% |
| Medical services (hospital) | 999311 | Exempt |
| Educational services | 999210 | Exempt |
| Financial services (banking) | 997111 | 18% |
| Insurance services | 997131 | 18% |
| Construction (residential) | 995412 | 5% or 1% |
| Rent (commercial property) | 997212 | 18% |
CBIC — HSN/SAC classification rules
What Are the Penalties for Wrong HSN Codes?
Using an incorrect HSN code is not a minor administrative error — it has real financial consequences:
- Wrong tax rate charged — If you use a 5% HSN code for a 12% product, you've underpaid GST. The department can demand the shortfall plus 18% interest.
- Buyer's ITC rejected — Your buyer claims ITC at the rate shown on your invoice. If it's wrong, the department can reverse their ITC and raise a demand on them.
- Section 122 penalty — ₹10,000 or the amount of tax evaded (whichever is higher) for incorrect invoices.
- Audit trigger — Systemic HSN mismatches are flagged during GST audits and scrutiny assessments.
Conclusion
HSN codes are the backbone of India's GST classification system. With the 2025 enforcement of dropdown-only selection in GSTR-1 and mandatory bifurcation of B2B and B2C HSN reporting, there's no room for guesswork.
Your HSN compliance checklist:
Find your product's exact 4-digit or 6-digit HSN using the CBIC portal
Ensure HSN is printed on every tax invoice you issue
Use only dropdown selection in GSTR-1 Table 12 (manual entry is disabled)
Report B2B and B2C HSN totals in separate tabs
Verify the GST rate against the HSN code using gstcalculator.me
When you're unsure about classification — particularly for products that span multiple categories — the investment in a CA consultation is far cheaper than the penalty risk.
HSN Codes — Frequently Asked Questions
What is the difference between HSN and SAC codes?
HSN classifies goods and can be 2, 4, 6, or 8 digits; SAC classifies services and is always 6 digits. Both determine the applicable GST rate.
How many HSN digits do I need on my invoice?
It depends on your turnover in the previous financial year: 4-digit HSN if your turnover is up to ₹5 Crore, and 6-digit HSN if it exceeds ₹5 Crore.
Can I manually enter an HSN code in GSTR-1?
No. From February 2025, GSTR-1's Table 12 only accepts HSN codes selected from the portal's built-in dropdown — manual entry is disabled.
What is the penalty for using the wrong HSN code?
Under Section 122 of the CGST Act, the penalty is ₹10,000 or the amount of tax evaded, whichever is higher, in addition to the underlying tax demand with interest.
Where can I look up the correct HSN code for my product?
The most reliable source is the CBIC GST portal's HSN/SAC search tool, where you can search by product description to find the chapter, heading, and applicable GST rate.
Related: GST Rate Slabs India · GST Invoice Format · How to File GSTR-1