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?

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:

1. Each product is assigned an HSN code from a list of HSN codes under GST.
2. That code is entered on the invoice whenever goods are sold or purchased.
3. The GST portal uses the code to determine the applicable tax rate.
4. 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:

1. 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. 
2. Search by product name: Type what you sell, for example, “shoes,” and the tool will show relevant codes.
3. Refer to trade websites: Reliable sources like cbic.gov.in, gst.gov.in, or professional accounting blogs publish updated lists.
4. 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.