What is HSN code and why is it used?

HSN stands for Harmonized System of Nomenclature, a global system for classifying goods. In GST, HSN codes help apply correct tax rates, standardize invoices, reduce classification errors, and are mandatory for filing GST returns such as GSTR-1 and GSTR-9.

What is HSN code in GST and invoice?

An HSN code in GST is a multi-digit classification number shown on invoices to define the tax category of products. Correct use ensures accurate GST rates, prevents penalties, and supports automation in invoicing systems, accounting software like Tally, and e-commerce platforms such as Amazon.

How do I find the HSN code for my product or service?

You can find the HSN code using the official GST portal or our free HSN/SAC Code Finder tool. Just enter your product or service name, and the tool will instantly show the correct classification code with the applicable GST rate, helping you ensure accurate invoicing and GST compliance.

Is HSN code mandatory for GST registration and return filing?

Yes, HSN codes for goods and SAC codes for services are mandatory under GST. They help apply the correct tax rates, standardize invoices, reduce classification errors, and must be used in GST registration and return filing, including forms like GSTR-1, GSTR-3B, and GSTR-9.

Can I get a full list of HSN codes with GST rates?

Yes, you can access the complete list of HSN codes with GST rates using our GST Rate Finder tool or the official GST portal. The list covers multiple categories, including textiles, electronics, construction materials, and other goods, making it easy to check applicable GST rates.

What is HSN code in Amazon listings or e-commerce platforms?

Sellers on Amazon, Flipkart, and other e-commerce platforms must include the correct HSN or SAC codes in product listings. This ensures GST rates are applied correctly at checkout, enables compliant invoice generation, and helps businesses stay accurate with GST return filing.

How do I add or change HSN code in Tally ERP 9?

In Tally ERP 9, you can add or update HSN or SAC codes through GST settings in Inventory or Item Masters. Entering the correct code ensures accurate GST calculation, error-free invoicing, and compliance with GST return filing requirements for goods and services.

What's the difference between HSN and SAC code?

HSN, or Harmonized System of Nomenclature, is used to classify goods under GST, while SAC, or Services Accounting Code, is used for services. Both coding systems help businesses apply the correct GST rates, generate compliant invoices, and ensure smooth return filing.

Is HSN-wise summary of outward supplies mandatory in GSTR-9?

Yes, taxpayers with annual turnover above ₹5 crore must provide an HSN-wise summary of outward supplies in GSTR-9. This helps avoid mismatches in reporting and ensures compliance. Using reliable HSN/SAC code finder tools makes it easier to identify the correct codes and GST rates.

What do HSN and SAC stand for and how do I use them?

HSN stands for Harmonized System of Nomenclature, used for classifying goods, while SAC means Services Accounting Code, used for services. Both must be added to invoices, GST registration forms, and returns to apply correct tax rates and ensure compliance with GST rules.

HSN Code Finder/SAC Code Finder – Search GST Codes by Product or Service

Use our free HSN code finder and SAC code finder to search accurate codes for goods and services. Find the correct HSN or SAC and stay compliant with GST rules.

Frequently Searched

What is an HSN Code?

HSN code full form is Harmonized System of Nomenclature. Wondering what is HSN code? It is an internationally recognized system for classifying goods into standardized codes, used across global trade.
But what is HSN code in GST and how does it apply to your business? In India, HSN codes are used under the GST system to classify products and apply the correct tax rate. They help streamline tax filing and prevent errors.
So, what is HSN in GST? It's a mandatory code that businesses must use when dealing with goods. For anyone asking what is HSN/SAC, the answer is simple — HSN is for goods, and SAC is for services.
To clarify again, what is the full form of HSN? It's Harmonized System of Nomenclature — a global standard adapted by India for simplified tax classification of goods.

HSN Code Structure in India

The HSN Code is typically a 6-digit uniform code, but countries may expand it to 8 or 10 digits for more detailed classification. For textile and apparel industry, understanding this structure is crucial for accurate GST filing, export documentation, and compliance.

Let's Consider this Example

Men's Cotton Shirt (Knitted): #61051000

61

Chapter

Articles of apparel and clothing accessories, knitted or crocheted

05

Heading

Men's or boys' shirts, knitted or crocheted

10

Sub-heading

Of cotton - shirts made primarily from cotton material

00

Tariff Item

Men's cotton knitted shirts (specific classification for customs and GST)

What is an SAC Code?

SAC stands for Services Accounting Code. While HSN is used for goods, SAC codes are used to classify services under GST.
Each type of service — such as software development, consulting, hospitality, or legal advisory — is assigned a specific 6-digit SAC code, all starting with 99.

These codes are critical for service providers to:

Identify the correct SAC for invoicing
Apply the right GST rate (usually 18%)
File compliant GST returns (e.g., GSTR-1, GSTR-3B)
Avoid penalties from incorrect code classification

Just like HSN helps categorize goods, SAC ensures standardized classification of services for smooth GST compliance.

How to Use the HSN Code Finder Tool?

1

Enter your product or service name in the search box

2

Instantly get matching HSN or SAC code suggestions

3

View HSN/SAC Code,Chapter and description

Why HSN Code is Required in GST Registration

During GST registration, you must declare the relevant HSN code or SAC code that represents your product or service. This classification helps:

Determine correct GST rate
Ensure invoice accuracy
Prevent GST filing errors
Avoid future legal issues

Whether you're a manufacturer or service provider, including the correct HSN code in GST registration is mandatory.