Every GST invoice in India must carry an HSN code (Harmonized System of Nomenclature) for goods, or a SAC code for services. Get it wrong — or leave it blank — and you're looking at penalties, mismatches in GSTR-1, and scrutiny from the tax department.
This guide gives you everything in one place: what HSN codes are, how many digits you need based on your turnover, a large HSN lookup table covering 50+ common products with their GST rates, a SAC code list for 20+ services, and answers to the most common questions business owners ask.
HSN stands for Harmonized System of Nomenclature. It is an internationally standardized system developed by the World Customs Organization (WCO) in 1988 to classify traded goods in a uniform way across the globe. Today, more than 200 countries use the HSN system for customs and trade purposes.
The base international HSN system uses 6 digits. India, like many countries, extends this to 8 digits for more granular domestic classification under the Customs Tariff Act and for GST purposes.
The HSN classification system covers all physical goods — from agricultural produce and raw materials to finished manufactured products and machinery. It does not cover services (which use SAC codes, explained later).
| Feature | HSN Code | SAC Code |
|---|---|---|
| Full Form | Harmonized System of Nomenclature | Services Accounting Code |
| Used For | Goods / Products | Services |
| Defined By | World Customs Organization (WCO) | Central Board of Indirect Taxes & Customs (CBIC) |
| Number of Digits | 2, 4, 6, or 8 digits | 6 digits |
| Example | 0901 (Coffee), 8517 (Mobile phones) | 998311 (IT consulting), 996311 (Hotel accommodation) |
| Where to Declare | GST invoice, GSTR-1, import/export docs | GST invoice, GSTR-1 |
In simple terms: if you are selling a product (a phone, a bag of rice, a shirt), you use an HSN code. If you are providing a service (software development, transportation, consultancy), you use a SAC code.
The number of HSN digits you must mention on your GST invoice and in GSTR-1 depends on your Annual Aggregate Turnover (AATO) in the previous financial year. The CBIC has mandated the following:
| Annual Turnover (Previous FY) | HSN Digits Required | Applies To |
|---|---|---|
| Up to Rs. 5 crore | 4-digit HSN code | B2B invoices (B2C optional but good practice) |
| Above Rs. 5 crore | 6-digit HSN code | All tax invoices (B2B and B2C) |
| Exporters & Importers | 8-digit HSN code | All export/import documents (mandatory) |
| Composition Dealers | Not mandatory on Bill of Supply | Bills of supply (not tax invoices) |
An 8-digit HSN code is built in layers — each set of digits narrows down the classification further. Here is how the structure works:
GST Rate: NIL
There are 21 Sections and 97 Chapters in the HSN system. Chapters 1–24 cover agricultural and food products, Chapters 25–27 cover minerals and fuels, Chapters 28–38 cover chemicals, and so on up to Chapter 97 (works of art).
The tables below cover the most commonly searched HSN codes across all major product categories. GST rates are as per the latest GST Council notifications applicable in 2026.
| Product | HSN Code | GST Rate |
|---|---|---|
| Rice (non-basmati, unbranded) | 1006 | NIL |
| Basmati Rice (branded) | 10063010 | 5% |
| Wheat (unbranded) | 1001 | NIL |
| Wheat Flour / Atta (unbranded) | 1101 | NIL |
| Wheat Flour / Atta (branded) | 11010000 | 5% |
| Sugar (raw / white) | 1701 | 5% |
| Milk (fresh, not packaged) | 0401 | NIL |
| Milk (UHT / packaged branded) | 04012000 | 5% |
| Paneer (fresh, unpackaged) | 0406 | NIL |
| Butter | 0405 | 12% |
| Edible Oils (groundnut, sunflower, mustard) | 1512 / 1514 | 5% |
| Tea (unprocessed leaf) | 0902 | NIL |
| Tea (processed, branded) | 09021090 | 5% |
| Coffee (roasted, branded) | 09012100 | 5% |
| Biscuits | 19053100 | 18% |
| Bread (non-sweetened) | 19051000 | NIL |
| Pasta / Noodles (plain) | 19021900 | 12% |
| Packaged Drinking Water (>20 litres) | 22011010 | NIL |
| Packaged Drinking Water (up to 20 litres) | 22011010 | 18% |
| Aerated / Carbonated Drinks | 22021010 | 28% + Cess |
| Product | HSN Code | GST Rate |
|---|---|---|
| Cotton fabric (unbleached) | 5209 | 5% |
| Readymade garments (value up to Rs. 1,000) | 6205 / 6206 | 5% |
| Readymade garments (value above Rs. 1,000) | 6205 / 6206 | 12% |
| Men's shirts (cotton) | 62051000 | 12% |
| Sarees (silk) | 54071000 | 5% |
| Sarees (synthetic / man-made fibre) | 54071000 | 12% |
| Woollen blankets / shawls | 6301 | 12% |
| Footwear (value up to Rs. 1,000/pair) | 6401 – 6405 | 5% |
| Footwear (value above Rs. 1,000/pair) | 6401 – 6405 | 18% |
| Leather bags & handbags | 42022100 | 28% |
| Product | HSN Code | GST Rate |
|---|---|---|
| Mobile phones / smartphones | 85171200 | 12% |
| Laptops & notebook computers | 84713010 | 18% |
| Desktop computers | 84714900 | 18% |
| Computer tablets | 84713020 | 18% |
| LED TVs (<32 inches) | 85281200 | 18% |
| LED TVs (>32 inches) | 85281200 | 28% |
| Refrigerators | 84181000 | 18% |
| Washing machines | 84501100 | 18% |
| Air conditioners (split / window) | 84151011 | 28% |
| Electric fans | 84145100 | 18% |
| LED bulbs & tube lights | 85395000 | 12% |
| Lithium-ion batteries (for EVs) | 85076000 | 18% |
| Product | HSN Code | GST Rate |
|---|---|---|
| Human medicines (drugs on essential list) | 3004 | 5% |
| Diagnostic reagents & test kits | 38220000 | 12% |
| Surgical instruments & devices | 9018 | 12% |
| Bandages, gauze, cotton wool | 3005 | 12% |
| Sanitary napkins / pads | 96190010 | NIL |
| Ayurvedic medicines (branded) | 30049011 | 12% |
| Insulin | 29371200 | 5% |
| Product | HSN Code | GST Rate |
|---|---|---|
| Portland cement | 25232900 | 28% |
| Steel (flat rolled products, TMT bars) | 7208 / 7213 | 18% |
| Bricks (fly ash / clay, non-AAC) | 69041000 | 12% |
| AAC blocks (Autoclaved Aerated Concrete) | 68109910 | 12% |
| Sand (natural) | 2505 | 5% |
| Marble & granite slabs | 6802 | 28% |
| Ceramic floor & wall tiles | 6907 | 28% |
| Paints & varnishes | 3208 / 3209 | 18% |
| PVC pipes | 39172100 | 18% |
| Copper wire & cables | 7408 | 18% |
| Product | HSN Code | GST Rate |
|---|---|---|
| Cars (petrol/diesel, engine <1200cc) | 87031200 | 28% + 1% Cess |
| Cars (petrol, engine >1200cc) | 87031300 | 28% + 3% Cess |
| Electric vehicles (cars) | 87032400 | 5% |
| Two-wheelers (motorcycles) | 87112000 | 28% |
| Electric two-wheelers / e-scooters | 87116090 | 5% |
| Tractor | 87011000 | 12% |
| Auto parts & accessories (general) | 8708 | 28% |
| Tyres (pneumatic, new) | 40111000 | 28% |
| Product | HSN Code | GST Rate |
|---|---|---|
| Soap (toilet / bathing) | 34011100 | 18% |
| Detergent / washing powder | 34022000 | 18% |
| Shampoo | 33051000 | 18% |
| Toothpaste | 33061000 | 18% |
| Fertilizers (urea) | 31021000 | 5% |
| Plastic bags & sacks | 39232100 | 18% |
| Polyethylene (HDPE / LDPE granules) | 39011000 | 18% |
| Product | HSN Code | GST Rate |
|---|---|---|
| Printed books (educational, general) | 49011000 | NIL |
| Newspapers & journals | 49021000 | NIL |
| Exercise books & notebooks | 48201000 | 12% |
| Plain paper (A4, copier paper) | 48022090 | 12% |
| Pens & ballpoint pens | 96081000 | 12% |
| Cardboard / corrugated boxes | 48191000 | 18% |
SAC (Services Accounting Code) is a 6-digit code used to classify services under GST. Below is the SAC code list for 20+ commonly provided services in India:
| Service | SAC Code | GST Rate |
|---|---|---|
| IT software development & consultancy | 998311 | 18% |
| Web design & development | 998313 | 18% |
| Data processing & hosting services | 998319 | 18% |
| Accounting & bookkeeping services | 998222 | 18% |
| Legal services (to business entities) | 998211 | 18% |
| Management consulting | 998311 | 18% |
| Advertising & market research | 998361 | 18% |
| Architecture & engineering services | 998321 | 18% |
| Photography & videography | 998386 | 18% |
| Hotel accommodation | 996311 | 12% / 18% |
| Restaurant services (non-AC, no liquor) | 996331 | 5% |
| Restaurant services (AC or liquor) | 996331 | 18% |
| Catering services | 996334 | 18% |
| Freight transport (road) | 996511 | 5% |
| Air passenger transport (economy class) | 996421 | 5% |
| Air passenger transport (business class) | 996421 | 12% |
| Healthcare / medical services (hospitals) | 999311 | NIL |
| Educational services (schools, universities) | 999210 | NIL |
| Coaching & training services | 999294 | 18% |
| Renting of immovable property (commercial) | 997212 | 18% |
| Security & guard services | 998521 | 18% |
| Event management services | 998596 | 18% |
| Repair & maintenance of machinery | 998719 | 18% |
There are several official and reliable methods to look up the correct HSN code for any product:
Go to search.cbic.gov.in and use the "HSN / SAC Search" tool. You can search by keyword (e.g., "mobile phone") and the portal will show the matching HSN code along with the applicable GST rate.
The CBIC publishes Schedule I through Schedule VI of GST rate notifications. These schedules list all goods with their HSN codes grouped by tax rate (NIL, 5%, 12%, 18%, 28%). Available at cbic-gst.gov.in.
The official Customs Tariff of India (published annually) contains all 8-digit HSN codes. It is available on the CBIC website and as a print edition. This is the most comprehensive source but requires some familiarity with the chapter structure.
For products that are difficult to classify — such as composite items, new-age products, or niche industrial goods — a qualified Chartered Accountant familiar with GST can give you the correct classification with supporting reasons.
Based on common GST audit findings and notices, these are the most frequent HSN-related errors made by businesses:
The CGST Act treats an incorrect or missing HSN code as an error in the tax invoice. The implications are:
| Nature of Default | Penalty | Section |
|---|---|---|
| Invoice issued without mandatory HSN / SAC code | Rs. 50 per invoice (Rs. 25 CGST + Rs. 25 SGST) | Section 125, CGST Act |
| General penalty for any GST Act contravention | Up to Rs. 25,000 | Section 125, CGST Act |
| Tax collected at wrong rate due to wrong HSN | Tax demand + interest @ 18% p.a. | Section 73 / 74, CGST Act |
| ITC wrongly availed by buyer due to wrong HSN | Reversal of ITC + interest + possible penalty | Section 16 / 74, CGST Act |
In practice, tax officers exercise discretion — small businesses making genuine classification errors are usually given an opportunity to correct and re-file before a penalty order is passed. However, repeated or deliberate mis-classification attracts stricter action.
HSN stands for Harmonized System of Nomenclature. It is an internationally standardized numeric system for classifying traded goods, developed by the World Customs Organization. Under Indian GST, HSN codes must be mentioned on tax invoices to classify the goods being sold and determine the applicable tax rate.
Taxpayers with annual turnover up to Rs. 5 crore must mention a 4-digit HSN code on B2B invoices. Taxpayers with turnover above Rs. 5 crore must use a 6-digit HSN code on all invoices. Exporters and importers must always use the full 8-digit HSN code.
HSN codes are used for goods, while SAC (Services Accounting Code) codes are used for services. HSN codes are based on the international WCO system (6 digits internationally, extended to 8 in India). SAC codes are 6-digit codes defined by the CBIC specifically for service classification under GST.
Composition scheme dealers issue a "Bill of Supply" (not a Tax Invoice) and are not required to mention HSN codes on it. However, it is advisable to maintain records with HSN references for internal compliance purposes.
Mentioning a wrong or missing HSN code can attract a penalty of Rs. 50 per invoice (Rs. 25 CGST + Rs. 25 SGST) under Section 125 of the CGST Act, up to a maximum of Rs. 25,000. If the wrong HSN leads to tax being charged at the incorrect rate, an additional demand for tax, interest, and penalty may apply.
Use the CBIC GST Portal at search.cbic.gov.in for keyword-based HSN/SAC search. The official Customs Tariff schedule is also available on cbic-gst.gov.in. For complex or industrial products, consult a qualified CA familiar with GST classification rules.
Yes. Table 12 of GSTR-1 requires an HSN-wise summary of outward supplies. The digit level required (4, 6, or 8 digits) depends on your aggregate annual turnover. This data feeds into the annual return GSTR-9 as well.
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