What is HSN ?

HSN code is reported as “Harmonized System of Nomenclature”. The Ministry of Finance has announced that businesses having a turnover of Rs. 5 crores and above need to provide a six-digit HSN code for the invoices handed for the supplies of taxable goods and services. HSN code was firstly introduced in 1988 by the (WCO) World Customs Organization. HSN code was announced for the systematic classification of goods and services at both levels of national and international. HSN code has a six-digit number that helps to classify various products. HSN codes are applied to GST and customs. There is diversity in HSN codes for different commodities. HSN code is utilized in the whole world. India had accepted HSN codes to classify entities for customs from 1986. HSN codes made the process of filing GST returns very easy and handy.

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1. What is the HSN code?

HSN code is reported as “Harmonized System of Nomenclature”. The Ministry of Finance has announced that businesses having a turnover of Rs. 5 crores and above need to provide a six-digit HSN code for the invoices handed for the supplies of taxable goods and services. HSN code was firstly introduced in 1988 by the (WCO) World Customs Organization. HSN code was announced for the systematic classification of goods and services at both levels of national and international. HSN code has a six-digit number that helps to classify various products. HSN codes are applied to GST and customs. There is diversity in HSN codes for different commodities. HSN code is utilized in the whole world. India had accepted HSN codes to classify entities for customs from 1986. HSN codes made the process of filing GST returns very easy and handy.

2. How does HSN function?

HSN code was announced for the systematic classification of goods and services at both levels of national and international. HSN code has a six-digit number that helps to classify various products. HSN has more than Rs. 5,000 commodity groups and for each group, there is a six-digit number created for the identification of each commodity group. HSN code is structured by the securely defined rules for uniform classification.

3. What is the importance of HSN?

HSN code was constructed mainly for the classifications of goods and commodities in the whole world but in a systematic and well-structured way. HSN code has a six-digit number that helps to classify various products. HSN code has more than Rs.5,000 commodity groups for each group of commodities.

4. Apprehending the HSN code

HSN code is conveyed as “Harmonized System of Nomenclature”. HSN code has a six-digit number and consists of 21 sections. These sections are divided into ninety-nine chapters having 1,244 headings and 5,224 subheadings. This systematic classification of goods and services made the GST very simple. “Harmonized System of Nomenclature” (HSN) codes of 6 numbers are common worldwide. Headings and subheadings show the description of the products meticulously and chapters along with sections present the comprehensive classifications of goods.

5. Who needs to use it?

It is an integral part of the classification of goods so all those manufacturers, exporters, and importers should take HSN codes in use. Many exporters and importers are documenting these codes. Retailers and dealers would be especially utilizing “Harmonized System of Nomenclature” (HSN) codes that are already provisioned in the invoices of manufacturer or importer suppliers. Dealers and retailers with a turnover of less than Rs. 1.5 crore does not need to take HSN codes for entities.

Frequently Asked Questions

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What is the HSN code?

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HSN code is also narrated as “Harmonized System of Nomenclature”. HSN code has a six-digit number that helps to classify various products. HSN codes are applied to GST and customs. HSN code was constructed mainly for the classifications of goods and commodities in the whole world but in a systematic and well-structured way.


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Is 6 digit HSN code mandatory?

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No. Only those registered taxpayers, Dealers, and retailers having a turnover of more than Rs 1.5 crore in the initial fiscal year are required to provide 6- digit HSN code-based invoices.


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Is HSN code 6 digits or 8 digits?

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HSN code has a six-digit universality for the classifications of goods and commodities in the whole world.


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What is a dissimilarity between the HSN code and SAC code?

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The difference between the HSN code and SAC is that SAC is to identify services but the HSN code is used to identify goods.


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Why is it essential to obey the HSN code?

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It is an integral part of the classification of goods so all those manufacturers, exporters, and importers should take HSN codes in use. HSN code is structured by the securely defined rules for uniform classification.


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Do all the businesses need to get the HSN code?

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Not all businesses have to get an HSN code but those registered taxpayers, Dealers, and retailers with a turnover of more than Rs. 1.5 crore in the initial fiscal year is required to provide a six-digit HSN code.


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How to find HSN Code?

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To find the HSN code, Firstly, you have to select the chapter based on section and subheadings, and you will get the product HSN code. For example- If the HSN code for Apple is 93849360. In this code, the chapter is 93, a section is 84, and 93 is the subheading so the product (Apple) would be identified by the number 60.


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What is UQC?

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UQC is denoted as a unique quantity code. However, UQC is a unit of measurement. For example 1 liter of milk or 4 kg flour etc.


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Why is the HSN code important under GST?

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The objective of HSN code regulations is to assemble GST globally accepted. With the help of HSN codes, you don’t need to upload a precise description of the goods. It preserves your precious time and energy.


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How do I write an HSN code?

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The foremost two digits of the HSN codes describe the HSN code chapter and the heading of the product is represented in the third and fourth digit of the HSN code along with the sub-heading is defined in the fifth and sixth digit of the HSN code.


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Krishna Gopal Varshney co-founder & CEO of Myitronline.com. Myitronline is amongst the top emerging startups of Asia and authorized ERI by the Income Tax Department. A dedicated and tireless Expert Service Provider for the clients seeking tax filing assistance and all other essential requirements associated with Business/Professional establishment. Connect to us and let us give the Best Support to make you a Success. ”

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Co-founder & CEO