HSN Code
Also called: Harmonised System of Nomenclature, HSN
What is HSN Code?
An HSN code is a numeric code from the Harmonised System of Nomenclature that classifies a product for tax purposes. GST rates are mapped to HSN codes, so the code you assign a product decides the rate it is billed at and the summary you report in returns.
Why HSN Code matters
Invoices above the prescribed turnover thresholds must carry HSN codes, and the HSN summary is a required section of GSTR-1. Products stored without codes force a manual scramble at filing time.
How HSN Code works in practice
Assign the code once on the product master in your catalogue rather than typing it per invoice. Four, six or eight digits are required depending on your turnover, so pick the depth your slab needs and stay consistent.
Worked example
Packaged namkeen and similar snacks are commonly classified under HSN 2106, which then carries that heading's GST rate on every bill.
Frequently asked questions
HSN codes classify goods; SAC codes classify services. A restaurant billing food service uses SAC, a shop selling packaged goods uses HSN.