What is HSN Code: HSN Codes List in GST | Free

Introduction
Ever noticed those random numbers printed next to items on a GST invoice? That’s not a secret code; it’s called an HSN code, and it quietly decides how much tax you pay. Whether it’s a packet of biscuits, a T-shirt, or a mobile phone, every product in India has a unique HSN code under GST. It’s like an Aadhar card for the products. In simple terms, it’s a universal system that helps the government and businesses identify what’s being sold and apply the right tax rate. This guide explains what is HSN code, why it matters, and shares a free list of HSN codes you can actually use.
What is HSN Code?
HSN stands for Harmonized System of Nomenclature, a global classification method developed by the World Customs Organization (WCO). It assigns a numeric code to every product traded internationally.
In simple terms, the HSN code is like a product’s fingerprint. It ensures that every product, from a pen to a refrigerator, has a globally recognized identity.
In India, under the GST (Goods and Services Tax) system, these codes are used to identify products, apply the correct tax rate, and make trade data uniform across states and countries.
Why is the HSN Code Important?
The HSN code in GST helps both the government and businesses in several ways:
- Avoids confusion: Instead of writing long descriptions, businesses can use a short code.
- Ensures correct taxation: Every HSN code corresponds to a specific GST rate.
- Simplifies compliance: Easier filing of GST returns and invoices
- Supports global trade: Since it’s international, it simplifies import and export classification.
Example: A seller of “cotton shirts” doesn’t have to describe the product every time. He can simply use the HSN code 6105, which universally refers to men’s shirts made of cotton.
List of Common HSN Codes in GST
Here’s a simple list of HSN codes you’ll often see in GST invoices(with relevance to new GST rates) :
| HSN Code | Product / Description | New GST Rate (w.e.f 22 Sept 2025) |
| 4011000 | Milk & cream | 5% |
| 4029110 | Condensed milk / evaporated | 5% |
| 4031000 | Yogurt & fermented milk products | 5% |
| 4059020 | Butter, ghee, dairy fats | 5% |
| 4062000 | Cheese | 5% |
| 10011010 | Wheat/meslin | 5% |
| 10063020 | Basmati Rice (packaged) | 5% |
| 11010000 | Wheat flour (pre-packaged) | 5% |
| 17019990 | Sugar/sugar products | 5% |
| 19019090 | Food mixes, bakery preparations | 5% |
| 19054000 | Bread, biscuits, cakes | 5% |
| 210690 | Ready-to-eat / food mixes | 5% |
| 22011010 | Packaged drinking water | 5% |
| 22029990 | Soft drinks / aerated beverages | 40% |
| 23021010 | Rice bran, cereal residues | 5% |
| 33030010 | Perfumes & toiletry waters | 18% |
| 33041000 | Cosmetics, beauty care | 18% |
| 34011120 | Soaps, cleaning bars /agents | 18% |
| 39231010 | Plastic packaging articles | 18% |
| 40111090 | Tyres & inner tubes | 18% |
| 42021110 | Bags, handbags, leather goods | 18% |
| 44101110 | Plywood, veneer, particle board | 18% |
| 48191010 | Paperboard, cartons, boxes | 18% |
| 62011100 | Readymade garments | 5% |
| 71082000 | Gold (unworked) | 3% |
| 71131110 | Jewellery / precious stones | 3% |
| 84151010 | Air conditioners | 18% |
| 85171211 | Mobile phones/smartphones | 18% |
| 85285200 | TVs, computer monitors | 18% |
| 87031010 | Cars (small/mid) | 18% |
| 87031090 | Luxury / high-end cars | 40% |
| 87111010 | Motorcycles & scooters | 18% |
| 94011000 | Furniture & seating | 18% |
| 94051010 | Lamps, lighting fixtures | 18% |
| 95030010 | Toys | 18% |
| 96031000 | Toothbrushes, shaving items | 5% |
For all HSN codes, you can visit either gst.gov.in or cbic.gov.in
Note: Tax rates may vary depending on government notifications.
Structure of an HSN Code
An HSN code is made up of six to eight digits, structured as follows:
| Level | Digits | Meaning |
| Chapter | First 2 digits | Broad category (e.g., Textiles, Machinery) |
| Heading | Next 2 digits | Type of product |
| Sub-heading | Next 2 digits | Specific variation |
| National code | Last 2 digits (optional in India) | Used for finer classification |
Example:
For “Chocolate” under HSN code 1806.32 —
- 18 → Chapter for Cocoa and products
- 06 → Heading for Chocolate
- 32 → Subcategory for filled chocolate
How HSN Code Works in GST?
Here’s how the system works in everyday terms:
- Each product is assigned an HSN code from a list of HSN codes under GST.
- That code is entered on the invoice whenever goods are sold or purchased.
- The GST portal uses the code to determine the applicable tax rate.
- When returns are filed, these codes help authorities verify details quickly.
This makes the system consistent; no matter who’s selling or buying, the code means the same thing everywhere.
When is HSN Code Mandatory?
The need to mention an HSN code in a GST invoice depends on the size and nature of your business:
| Annual Turnover | HSN Code Digits Required | Where to Mention |
| Up to ₹5 crore | 4 digits | Invoices and GST returns |
| Above ₹5 crore | 6 digits | Invoices and GST returns |
| Exporters & importers | 8 digits | Customs documentation |
So, if you’re a small business owner, you’ll usually need 4-digit codes, while large traders or exporters must use all 6 or 8 digits.
How to Find the Right HSN Code?
If you’re not sure which code to use, follow these simple steps:
- Use the official GST portal: It offers a search tool for HSN codes. Visit gst.gov.in and go to the User Services under the Services tab, and click Search HSN code.
- Search by product name: Type what you sell, for example, “shoes,” and the tool will show relevant codes.
- Refer to trade websites: Reliable sources like cbic.gov.in, gst.gov.in, or professional accounting blogs publish updated lists.
- Use accounting software: Many modern systems automatically suggest the correct HSN code in GST when you create invoices.
Benefits of Using the Correct HSN Code
Using accurate HSN codes saves you from errors and penalties. Here’s why it matters:
- Accuracy: Ensures correct GST calculation.
- Efficiency: Speeds up invoice processing.
- Compliance: Keeps your returns accurate.
- Automation: When you use the best accounting software, it auto-fills HSN codes to save time.
For example, if you use smart best accounting software for small businesses like Vyapar, it can store your product list along with respective HSN codes, reducing manual work and chances of mistakes.
Common Mistakes to Avoid
- Using outdated or incorrect codes.
- Copying codes from unrelated products.
- Not updating HSN when tax rates change.
- Missing digits (e.g., using 4 instead of 6 for large businesses).
- Not updating the HSN code summary while filing returns, as it’s mandatory.
To avoid these errors, make sure your accounting software or GST filing tool is up to date with the latest list of HSN codes.
Conclusion
Understanding what is HSN code is essential for anyone dealing with goods under GST. It’s the foundation for identifying products and applying the right tax rate. With the right list of HSN codes, businesses can file returns accurately, avoid confusion, and stay compliant.
Whether you’re a student learning about taxation or a business owner managing invoices, using the correct HSN code in GST is non-negotiable. And if you’re using reliable accounting software for a small business, it becomes even easier when the system classifies you, helping you stay one step ahead in compliance and efficiency.
Frequently Asked Questions (FAQs)
- Who needs to use the HSN Code?
All businesses registered under GST must use HSN codes on their invoices. However, the number of digits required depends on turnover.
- Is the HSN code applicable for services too?
No, the services use a separate classification called SAC (Service Accounting Code). Just like HSN codes, SAC also helps classify what’s being provided, but for services.
- What happens if the wrong HSN code is used?
Using the wrong HSN codes can lead to the wrong tax rates, mismatched invoices, and even penalties during audits. Hence, referring to the proper codes for the required goods before putting them on the invoice is always recommended.
- Can I find a free list of HSN codes?
Yes, absolutely. You can find an official and updated list of all HSN codes on the GST portal: gst.gov.in and on government resources like the CBIC (Central Board of Indirect Taxes and Customs) website.
- How can accounting software help with HSN codes?
Modern accounting software makes handling HSN codes effortless. Tools like Tally, Zoho Books, QuickBooks, and Vyapar automatically fill in the correct HSN codes based on your product type. Update GST rates whenever there’s a regulatory change. Generate error-free invoices and simplify return filing. This saves time, avoids manual mistakes, and ensures full compliance with GST rules.
