HSN Code

A globally standardized number that classifies goods to determine the correct GST rate.

HSN (Harmonized System of Nomenclature) is an internationally accepted system for classifying goods. Under GST, HSN codes identify products so the right tax rate is applied and reporting is consistent.

The number of HSN digits a business must show on invoices depends on its turnover. Services use a similar system called SAC (Services Accounting Code).

• 4–8 digit codes classify goods.
• Determines the applicable GST rate.
• Digit requirement on invoices scales with turnover.