HSN Code List 2026: How Many Digits You Need, How to Find a Code, and Rates for Common Goods

Every GST invoice line and every GSTR-1 needs an HSN code, and the code quietly decides which GST rate you charge. This guide is for shop owners, traders, manufacturers and accountants who want to get it right: what HSN and SAC codes are, how many digits your turnover requires on invoices and in GSTR-1 Table 12, how to look up a code properly, and ready-made examples with GST 2.0 rates for hardware, computers, garments and furniture. Every rule here was checked against CBIC notifications, the GST rate schedules effective 22 September 2025 and GSTN's advisories in October 2026.

Quick answer

An HSN code classifies goods under the World Customs Organization's Harmonized System; services use SAC codes that start with 99. If your aggregate turnover last year was up to ₹5 crore you must show at least 4-digit HSN on invoices and in GSTR-1 Table 12; above ₹5 crore it's 6-digit HSN. Look codes up free on services.gst.gov.in → Search HSN/SAC.

• Up to ₹5 crore: HSN is optional on invoices to unregistered (B2C) buyers

• 49 notified chemicals need 8-digit HSN on invoices whatever your turnover

• GSTR-1 Table 12 now takes codes from a dropdown only, in separate B2B and B2C tabs

• Most hardware and computer goods are 18%; garments are 5% up to ₹2,500 a piece

What is an HSN code?

HSN is short for Harmonized System of Nomenclature, the product classification maintained by the World Customs Organization (WCO). More than 200 countries and economies use it, and it groups traded goods into over 5,000 commodity groups, each identified by a six-digit code. Because the first six digits are the same everywhere, a laptop has the same HS subheading in Mumbai, Dubai and Rotterdam. The WCO revises the system every five to six years, and India updates its tariff to match, so codes for some products occasionally move.

India uses an eight-digit version in its Customs Tariff (and in the ITC-HS list used for imports and exports). GST borrowed the same classification, which is why the rate schedules in the GST rate notifications are arranged by chapter, heading and tariff item. If you know where a product sits in the Customs Tariff, you know where to find its GST rate.

Here is how one code breaks down, using a cotton T-shirt:

• Chapter (2 digits): 61 — apparel and clothing accessories, knitted or crocheted
• Heading (4 digits): 6109 — T-shirts, singlets and other vests, knitted
• Subheading (6 digits): 6109 10 — of cotton
• Tariff item (8 digits, India): 6109 10 00 — cotton T-shirts, the full Indian code

The chapter tells you the broad family, the heading narrows it to a product type, the subheading adds material or specification, and the last two digits are India's national split. When the GST rules ask for "4 digits", they mean the heading; "6 digits" means the subheading.

HSN vs SAC: goods and services

Services don't have HSN codes in the WCO system. India added its own Services Accounting Code (SAC) list under Chapter 99 of the GST classification. Every SAC begins with 99 and runs to six digits — for example, 9983 is the heading for other professional, technical and business services, and 998314 covers IT design and development services. The same digit rules apply: a business that must show four digits of HSN shows four digits of SAC for its services. If you sell both goods and services, each line on your invoice gets its own HSN or SAC.

How many HSN digits do you need on invoices?

The legal requirement sits in the first proviso to Rule 46 of the CGST Rules, which lets CBIC notify how many digits a tax invoice must show. The current table was substituted by Notification 78/2020-Central Tax, effective 1 April 2021, and it works on your aggregate turnover in the preceding financial year — the all-India turnover under one PAN, not a single GSTIN.

HSN digits required by turnover (2026)

Who	On tax invoices	In GSTR-1 Table 12	Rule
Turnover up to ₹5 crore	4-digit HSN (optional on B2C invoices)	4-digit HSN, B2B and B2C tabs	Notification 78/2020-CT
Turnover above ₹5 crore	6-digit HSN on all invoices	6-digit HSN, B2B and B2C tabs	Notification 78/2020-CT
Suppliers of 49 notified chemicals	8-digit HSN	As per turnover band	Notification 90/2020-CT
Importers and exporters	8-digit tariff item on shipping bill / bill of entry	As per turnover band	Customs Tariff

Turnover up to ₹5 crore

On tax invoices

4-digit HSN (optional on B2C invoices)

In GSTR-1 Table 12

4-digit HSN, B2B and B2C tabs

Rule

Notification 78/2020-CT

Turnover above ₹5 crore

On tax invoices

6-digit HSN on all invoices

In GSTR-1 Table 12

6-digit HSN, B2B and B2C tabs

Rule

Notification 78/2020-CT

Suppliers of 49 notified chemicals

On tax invoices

8-digit HSN

In GSTR-1 Table 12

As per turnover band

Rule

Notification 90/2020-CT

Importers and exporters

On tax invoices

8-digit tariff item on shipping bill / bill of entry

In GSTR-1 Table 12

As per turnover band

Rule

Customs Tariff

Three points trip people up. First, the B2C relaxation for businesses up to ₹5 crore only covers the printed invoice to an unregistered buyer. You still have to report those sales with an HSN in the B2C tab of GSTR-1 Table 12. Second, the 8-digit chemical list under Notification 90/2020 is product-specific — it names items such as phosphonate compounds under headings 2931 and 3824 — and applies even to a micro unit. Third, e-invoices and e-way bills follow the same turnover test. The e-invoice and e-way bill systems have required at least six digits from businesses with turnover of ₹5 crore and above — on e-invoices from 15 December 2023 and on e-way bills from 1 February 2024 (NIC advisory of 5 January 2024) — so a four-digit code from an old item master will be rejected. If you're new to e-invoicing, see our e-invoice guide.

More digits are always allowed. Many businesses simply use the full eight-digit code everywhere, which removes any argument about which band they fall in and makes the jump past ₹5 crore painless.

HSN in GSTR-1 Table 12: what changed in 2025

Filling GSTR-1 Table 12 after Phase 3

Step 1

Pick HSN from dropdown

Step 2

Description auto-fills

as per HSN master

Step 3

Enter UQC, quantity, value

Step 4

B2B or B2C tab

reported separately

Step 5

Value check vs Tables 4–15

warning mode for now

Table 12 of GSTR-1 is the HSN-wise summary of everything you sold in the period: code, description, unit quantity code (UQC), quantity, taxable value and tax. GSTN has tightened it in phases. Phase 2, from November 2022, made the four- or six-digit code mandatory but still let you type it in by hand with only a warning. Phase 3, which GSTN's updated advisory applies from the May 2025 return period, changed the table in four ways:

• Dropdown only. You can no longer type an HSN manually. You pick it from the list, and the official description fills in automatically in a new field called "Description as per HSN Code".
• Separate B2B and B2C tabs. Supplies to registered buyers and to consumers are now reported in different tabs. If you've reported B2B supplies anywhere in GSTR-1, the B2B tab can't be left empty.
• Value checks. The portal compares the B2B values in Tables 4, 6, 8, 9 and 15 with your B2B HSN summary, and the B2C values in Tables 5, 6A, 7, 8, 9, 10 and 15 with the B2C summary. For now these checks run in warning mode — you can still file if they don't match — but a mismatch is now visible to the department.
• Downloadable code list. A "Download HSN Codes List" button gives you an Excel file of current HSN and SAC codes with descriptions.

GSTN made Table 13 (documents issued) mandatory from the same period. GSTN has said a Phase 4 will be "communicated in due course"; as of October 2026 it has not been announced. The safe assumption is that the value checks will one day block filing, so it's worth reconciling your HSN summary with your sales register every month.

How to find the right HSN code for your product

Classification isn't a keyword search. Two products with similar names can sit in different chapters — a steel almirah is furniture under 9403, while a steel storage tank is 7309 — and the rate can differ. Work through it in order:

Find an HSN code in five steps

1. 1

   Describe the product precisely

   Write down what it is made of, what it does and how it's sold — for example 'knitted cotton T-shirt, men's, sold loose' rather than 'garment'. Material and function drive classification.

2. 2

   Search on the GST portal

   Open services.gst.gov.in → Search HSN/SAC (no login). Search by product name or by a code you think is close, and note the chapter and heading it shows.

   Open Search HSN/SAC
3. 3

   Read the chapter in the Customs Tariff

   Open that chapter in the Customs Tariff on the CBIC site and read the section and chapter notes. Notes often exclude items — for example, Chapter 94 excludes some medical furniture and lamps of other chapters.

   Tip: If two headings seem to fit, the General Rules for Interpretation decide: the most specific description wins, and mixtures go by the material that gives them their essential character.

4. 4

   Find the rate in the GST rate notification

   Search the heading or tariff item in the GST rate schedules (Notification 9/2025-Central Tax (Rate) for goods since 22 September 2025). Check whether a size, price or material condition applies.

5. 5

   Record it and keep the evidence

   Save the code, rate and your reasoning in your item master. If the classification is genuinely doubtful and the money is large, apply for an advance ruling with your state's AAR.

Your supplier's invoice is a useful starting point but not proof — if the supplier has it wrong, you inherit the problem when you resell. Our free HSN code finder searches the same codes and shows the current rate, which is handy for a first pass.

HSN code list for hardware items (with GST rates)

"Hardware" covers dozens of headings. The good news is that after GST 2.0 almost all of them sit in the 18% schedule, so a hardware shop rarely has to juggle rates. The code still has to be right for Table 12 and your e-way bills.

Watch for items that look like hardware but aren't classified as such. Agricultural hand tools such as spades, hoes and sickles are in heading 8201, which has its own entry. Steel structures and fabricated parts sit in 7308. If you run a counter like this, our hardware shop business plan covers stock planning and margins.

HSN code for computers, laptops and accessories

Computer goods are concentrated in Chapter 84 (machines) and Chapter 85 (electrical equipment). After GST 2.0, the whole family is at 18% — including monitors, which moved down from 28% on 22 September 2025.

The common mistake here is billing accessories under 8471 by habit. Cases and carrying bags aren't parts under 8473 — laptop bags go to heading 4202 — and a monitor with a TV tuner is still 8528. For the full electronics picture, see our GST on electronics guide.

HSN codes for garments and furniture

Garments. Clothing splits by how the fabric is made: Chapter 61 for knitted or crocheted items (T-shirts 6109, sweaters 6110, track suits 6112) and Chapter 62 for woven items (men's trousers and jeans 6203, women's suits and dresses 6204, men's shirts 6205). Household textiles such as bedsheets and curtains are Chapter 63. The rate depends on the sale value of each piece, not the code: 5% when the value is up to ₹2,500 per piece and 18% above that. Sarees and unstitched dress material are classified as fabric in Chapters 50–55, at 5%. Our GST on garments page covers discounts and the per-piece test in detail.

Furniture. Chairs and other seats are heading 9401 at 18%. Beds, tables, almirahs, office and kitchen furniture are 9403 at 18%, except furniture made wholly of bamboo, cane or rattan, which is 5%. Mattresses and pillows are 9404 at 18%, and plywood sheets used to make furniture are 4412 at 18%. More detail is in our GST on furniture guide.

Worked example: one invoice, four HSN codes

Patel Traders in Surat had aggregate turnover of ₹3.2 crore last year, so it needs 4-digit HSN on B2B invoices. It sells to a registered contractor in Surat:

Because the sale is within Gujarat, the ₹22,500 splits into ₹11,250 CGST and ₹11,250 SGST. In GSTR-1, the invoice goes in Table 4A, and Table 12's B2B tab gets four rows — 7318, 8302, 3917 and 8471 — each picked from the dropdown, with UQC (numbers, metres, pieces), quantity and value. Next door, a walk-in customer buys a ₹900 padlock; the printed bill may skip the HSN, but the sale still goes in the B2C tab under 8301.

If Patel Traders crosses ₹5 crore this year, it must switch to six digits from the next financial year — 7318 16 for nuts, for example — on invoices, e-way bills and Table 12. Updating the item master once, before 1 April, avoids rejected e-invoices later.

Penalty for a wrong or missing HSN code

A wrong code causes trouble in three different ways, and the cost depends on which one applies.

Wrong code, wrong rate. This is the expensive case. If you billed an 18% item at 5% because of a misclassification, the department will demand the short-paid tax under section 73 (or section 74 where there's fraud or suppression), with 18% a year interest under section 50 and a penalty on top. Your customer can't fix it for you — the extra tax is your liability, and recovering it from a buyer months later is rarely easy.

Wrong or missing code, right rate. Where the tax is correct but the invoice or GSTR-1 shows the wrong HSN, or none, there's no specific penalty in the Act, so officers use the general penalty in section 125, which can go up to ₹25,000 under CGST and the same under SGST. In practice it is rarely levied for a single slip, but repeated non-compliance in Table 12 is the kind of thing an audit picks up.

Small HSN slip on an e-way bill. Goods in transit can be detained for documentation errors. CBIC's Circular 64/38/2018-GST says that where the HSN is wrong at the four- or six-digit level but the first two digits and the tax rate are correct, the officer should not detain the goods but levy a penalty of ₹500 each under CGST and SGST (₹1,000 under IGST). See our e-way bill guide for other minor-discrepancy cases.

Common HSN mistakes and how to fix them

Before you file GSTR-1 each month

0/6

• Every item in the billing software has an HSN or SAC and the GST 2.0 rate
• Six digits set up if last year's turnover crossed ₹5 crore
• Table 12 B2B and B2C totals match Tables 4–10 and 15
• UQC chosen per item (NOS, KGS, MTR, PCS) — not OTH
• Table 13 (documents issued) filled in
• Any wrong-rate invoice corrected and the difference paid through DRC-03

Share Print

Picking any 18% code just to keep the rate right is not a fix: Table 12 stays wrong, e-invoice validation can fail, and it gives an officer a reason to look further. Classify by what the product is, then check the rate.

Using one code for everything. Small shops sometimes report all sales under a single heading. Since Phase 3, Table 12 values are cross-checked against the rest of GSTR-1, so split your sales register by HSN in your billing software.

Old codes after a rate change. Rates changed for hundreds of items on 22 September 2025 under GST 2.0. If your software maps rate to code, check that each item still carries the right rate. Our GST 2.0 guide lists the major moves.

Wrong UQC. Table 12 needs a unit quantity code that matches how you sell — numbers (NOS), kilograms (KGS), metres (MTR), pieces (PCS). Choosing "OTH" for everything creates noise in the department's analytics.

Not upgrading at ₹5 crore. The test looks at last year's turnover, so a business crossing ₹5 crore in March must show six digits from April. Missing this is one of the most common causes of e-invoice rejections.

Fixing errors. An HSN error in a filed GSTR-1 can be corrected in GSTR-1A before you file GSTR-3B for that period, or through amendments in a later GSTR-1. If the rate was wrong, pay the difference with interest through DRC-03 as soon as you spot it — voluntary payment before a notice keeps penalties low.

Official links

• Search HSN/SAC (GST portal)Free code lookup, no login
• GST rates for goods and services (CBIC)Rate notifications and schedules
• Customs Tariff (CBIC)8-digit tariff items and chapter notes
• Notification 78/2020-Central TaxHSN digits by turnover
• Notification 90/2020-Central Tax8-digit HSN for 49 chemicals
• GSTN advisory on HSN in Table 12Phase 3 changes

What to do next

Spend an hour fixing your item master: one correct HSN or SAC per product, the GST 2.0 rate beside it, and six digits if you're near ₹5 crore. Then every invoice, e-way bill and Table 12 follows automatically. Look up codes with our HSN code finder, raise clean bills with the free invoice generator, and read the GSTR-1 guide before your next filing.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

What is an HSN code in GST?

HSN stands for Harmonized System of Nomenclature, the World Customs Organization's product classification used by more than 200 countries. India uses it to classify goods under GST and customs. The first 6 digits are international; India adds 2 more for an 8-digit tariff item. Services use SAC codes starting with 99. The code decides the GST rate, so getting it right matters.

How many digits of HSN code are mandatory on a GST invoice?

Under Notification 78/2020-Central Tax, businesses with aggregate turnover up to ₹5 crore in the previous year must show 4-digit HSN on tax invoices; above ₹5 crore it is 6-digit HSN. Smaller businesses may skip HSN on invoices to unregistered buyers. Suppliers of 49 notified chemicals must show 8-digit HSN regardless of turnover.

What is the HSN code for computer and laptop?

Computers, laptops and their units fall under heading 8471 — portable machines like laptops under 8471 30, and keyboards, mice and other input or output units under 8471 60. They attract 18% GST. Monitors are under 8528 at 18%, printers under 8443 and computer parts under 8473, all at 18% after GST 2.0.

What is the HSN code for hardware items?

Hardware isn't one code. Screws, bolts and nuts are 7318; nails 7317; hand tools such as spanners and pliers 8203–8205; locks 8301; hinges and door fittings 8302; taps and valves 8481; plastic pipes 3917; paints 3208–3210. Almost all hardware items attract 18% GST after GST 2.0, so the code mainly matters for correct reporting.

Where can I search HSN codes officially?

Use the free Search HSN/SAC tool on services.gst.gov.in (no login needed), or download the HSN list from Table 12 of GSTR-1 on the portal. For the rate, check the CBIC rate notification schedules. For 8-digit tariff items and chapter notes, use the Customs Tariff on the CBIC website. If a product is genuinely ambiguous, you can apply for an advance ruling.

What is the penalty for a wrong HSN code?

If the wrong code leads to a lower rate, you pay the short tax with 18% a year interest and a penalty under section 73 or 74. If only the code is wrong, the general penalty under section 125 can go up to ₹25,000 each under CGST and SGST. For a minor HSN slip on an e-way bill, CBIC asks officers to levy just ₹500 each under CGST and SGST (₹1,000 under IGST).

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 9 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.NIC advisory on mandatory 6-digit HSN in e-way bills from 1 February 2024 (AATO above ₹5 crore) — Taxmann (reproducing the NIC e-way bill portal advisory) · accessed 9 October 2026
2. 2.Notification No. 78/2020 – Central Tax (HSN digits on tax invoices) — CBIC (hosted by GST Council) · accessed 9 October 2026
3. 3.Notification No. 90/2020 – Central Tax (8-digit HSN for specified chemicals) — CBIC (hosted by GST Council) · accessed 9 October 2026
4. 4.Advisory: Reporting of HSN codes in Table 12 of GSTR-1/1A — GSTN · accessed 9 October 2026
5. 5.Notification No. 9/2025 – State Tax (Rate), Maharashtra (mirrors central Notification 9/2025-CT(Rate)) — Government of Maharashtra · accessed 9 October 2026
6. 6.Circular No. 64/38/2018-GST (minor discrepancies in e-way bills) — CBIC (hosted by GST Council) · accessed 9 October 2026
7. 7.What is the Harmonized System (HS)? — World Customs Organization · accessed 9 October 2026
8. 8.Search HSN/SAC code — GSTN (GST portal) · accessed 9 October 2026
9. 9.GSTN issued new advisory on Table-12 of GSTR-1 or GSTR-1A; manual entry of HSN not allowed — Taxmann · accessed 9 October 2026