HSN Code List and GST Rates

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The HSN code list and GST rates go hand to hand with the Indian taxation system. After the implementation of Goods and Service Tax (GST), it has become necessary for the taxpayers to classify their goods and services under Harmonized System of Nomenclature (HSN) codes.

The HSN code list categorizes goods for taxation purposes, while GST rates determine applicable tax percentage for different products and services. In this article, we will talk about HSN codes and GST rates and provide you with insights that can help with your tax operations and compliance.

What is HSN Code?

HSN code or Harmonized System of Nomenclature was introduced by the WCO (World Customs Organization) to classify goods or services a business offers. The HSN code consists of a six-digit number that helps businesses categorize over 5,000 products for a smoother communication between trading partners.

Currently, HSN is used by 200+ countries as it helps business with:

  • Uniform product classification
  • Customs tariffs
  • International trade statistics

Furthermore, over 98% of the organizations in international trade are categorized in terms of HSN.

How Does HSN Code Work?

The HSN code is globally accepted for classifying goods in international trade. It’s a six-digit code and each digit in the HSN code represents a specific category, making it easier for customs officials and businesses to identify the nature of the product.

The code is arranged in a legal and logical structure and it is supported by a defined rule for an uniform classification. You can look for HSN code search online to find the code of any product.

HSN Structure

The Harmonized System of Nomenclature (HSN) structure contains 21 sections, 99 Chapters, 1,244 headings, and around 5,224 subheadings.

The Sections and chapters cover general categories, while headings and subheadings provide detailed descriptions of products. It’s like a big classification system that helps organize and identify different types of goods in a detailed way. Let’s understand it by an example.

For example:

A Scarf or handkerchief made of textile matters with the HSN code 62.13.90

First primary two digits (62) states the chapter of the product- apparel and clothing accessories

The next two digits (13) represent the heading number for the scarf.

Finally, the last two digits (90) is the product code for scarfs that are made of textile materials.

Harmonized System of Nomenclature (HSN) structure for HSN code list

GST and HSN code list

The GST rate applicable to a product is directly linked to its HSN code. Goods or services with different HSN codes may have different GST rates. This ensures uniformity in tax application across different goods.

Businesses must mention the correct HSN code list for each good or service on their GST invoices. It helps them with:

Here’s a breakdown on how business should declare GST HSN code:

Transaction ChargesNo. of digits of HSN to be declared
Up to 1.5 crore0
1.5 – 5 crore2
More than 5 crores4

If the transaction is 5 or more than 5 crores, businesses have to attach invoice documents for the declaration of HSN code for goods and services.

Transaction ChargesInvoice document neededNo. of digits of HSN to be declared
Up to 5 croresCompulsory for B2B4
Optional for B2C4
More than 5 croreMandatory for all invoices6

How to Add HSN Code List in the GST Portal?

The Indian taxation system offers you to easily add HSN code into the GST portal. Follow the steps below:

  • Visit the GST portal website and login (https://www.gst.gov.in/)
  • Now click on Services on the main screen then go to Registration and select Amendment of Registration Non-core fields
  • Now, click on the Goods and Services tab
  • Choose the Goods option
  • Find the HSN chapter by typing the HSN code or the item name
  • Now click Save and continue and complete the verification

Why is HSN Important for GST?

The main purpose of GST rate and HSN code is to make it globally accepted and systematic. It helps businesses to find the actual GST amount and a better way to classify your product or goods.

Moreover, when you use a HSN code inside your bill, you do not have to write every detail of your products. This can save your time and makes GST filing easy.

Chapter-wise HSN Code List

ChapterCommodities
Chapter 1Live animal stock
Chapter 2Edible meat and offal
Chapter 3Fish, Prawns, Squids and other seafoods
Chapter 4Dairy products, eggs, honey
Chapter 5Animal products that are not edible
Chapter 6Live trees, flowers and plants
Chapter 7Edible vegetables and roots
Chapter 8Edible fruits
Chapter 9Tea, coffee and spices
Chapter 10Grains and Cereals
Chapter 11Mill products
Chapter 12Medicinal fruits, plants and seeds
Chapter 13SAPs, gum, lac, and other extracts
Chapter 14Vegetable materials and products that haven’t specified elsewhere
Chapter 15Animal and vegetable oils
Chapter 16Preserved meat, fish, molluscs, or other aquatic edible items
Chapter 17Sugar and its confectionery
Chapter 18Cocoa and its products
Chapter 19Pizza, pastry and waffles
Chapter 20Jams, jellies, fruits
Chapter 21Miscellaneous edible preparations
Chapter 22Non-alcoholic beverages like vinegar, spirits, etc.
Chapter 23Residue food waste and animal fodder
Chapter 24Tobacco and its substitutes
Chapter 25Salt and stones
Chapter 26Mineral ores
Chapter 27Coal and petroleum
Chapter 28Inorganic chemicals
Chapter 29Organic chemicals
Chapter 30Pharmaceutical products and blood
Chapter 31Fertilizers
Chapter 32Coloring and tanning goods
Chapter 33Essential oils and cosmetics
Chapter 34Soaps & waxes
Chapter 35Albuminoidal products like enzymes, glues, and starches
Chapter 36Pyrotechnic products, Explosives, pyrophoric alloys, combustibles, and matches
Chapter 37Photographic and cinematographic products
Chapter 38Unspecified chemical products
Chapter 39Plastics and plastic materials
Chapter 40Rubber and rubber materials
Chapter 41Skins, raw hides and leather
Chapter 42Products that are made of leather like travel products or handbags, harnesses and saddlery, goods made out of animal guts
Chapter 43Furskins and artificial furs
Chapter 44Wood, wooden articles, wood charcoal etc
Chapter 45Cork and cork products
Chapter 46Straw, esparto and other plaiting materials, wickerwork and basket wares
Chapter 47Wood pulp and other fibrous material
Chapter 48Paper and paperboard, products that are made of paper pulp, or goods made of paperboard
Chapter 49Printed books, pictures, newspapers, and other printing industry products
Chapter 50Silk
Chapter 51Wool, animal hair, yarn and other woven fabrics
Chapter 52Cotton
Chapter 53Other textile fibers that aren’t specified
Chapter 54Man-made filaments
Chapter 55Man-made staple fibers
Chapter 56Wadding, felt and nonwovens, twine ropes, cables and other nonwovens
Chapter 57Carpets and other textile coverings
Chapter 58Special woven fabrics, tufted textiles, lace tapestries and embroidery
Chapter 59Covered, coated, or laminated textile fabrics and textile for industrial use
Chapter 60Crocheted or knitted fabrics
Chapter 61Apparel and clothing accessories which are crocheted or knitted
Chapter 62Apparel and clothing accessories which are not crocheted or knitted
Chapter 63Other made up textile products, worn clothes, sets and textile articles
Chapter 64Footwears, gaiters, boots etc., and similar products
Chapter 65Headgear parts and similar articles
Chapter 66Umbrellas, seating sticks, walking sticks, whips, and riding crops thereof
Chapter 67Artificial flowers, and products made from human hair
Chapter 68Products made from stone, mica, asbestos, plaster, cement or similar articles
Chapter 69Ceramic products
Chapter 70Glass and glassware
Chapter 71Precious stones and materials for jewelry and other items. Gold, Silver, Diamond etc.
Chapter 72Iron and steel
Chapter 73Products made of iron or steel
Chapter 74Copper and its alloy articles
Chapter 75Nickel and its articles thereof
Chapter 76Aluminum and its articles thereof
Chapter 77(This chapter is reserved for future use)
Chapter 78Lead and its articles thereof
Chapter 79Zinc and its articles thereof
Chapter 80Tin and its articles thereof
Chapter 81Other base metals and articles thereof
Chapter 82Agricultural tools, implements, forks and spoon, cutlery and parts thereof
Chapter 83Miscellaneous products made out of base metals
Chapter 84Nuclear reactors, machinery and mechanical appliances, boilers, and parts thereof
Chapter 85Electrical machinery, tools, equipment and parts thereof, sound producers and recorders, television and every electrical items
Chapter 86Tramway or railway locomotives products
Chapter 87Vehicles other than tramway or railway
Chapter 88Spacecrafts, Aircrafts and parts thereof
Chapter 89Cruises, ships, boats and other floating structures
Chapter 90Photographic, optical, cinematographic, measuring, checking, precision, medical & surgical tools
Chapter 91Watches, Clocks and parts thereof
Chapter 92Musical instruments and accessories of such items
Chapter 93Arms, ammunition and other military weapons
Chapter 94Furnishings such as furniture, mattresses, mattress supports, bedding, cushions, and other similar stuffed items, along with lamps and lighting fixtures, fall under this category. This also includes items like illuminated signs, nameplates, and prefabricated buildings that are not specifically mentioned elsewhere
Chapter 95Games, toys, and sports equipment, along with their components and related accessories
Chapter 96Miscellaneous manufactured items
Chapter 97Artistic creations and objects of historical value, or arts and antiques
Chapter 98Project acquisitions, laboratory substances, personal shipments via air or mail, passenger luggage, and ship provisions.
Chapter 99Services

Conclusion

The HSN code list and GST rates play an important role in the Indian taxation system for classification of goods and finding applicable tax percentages.

Moreover, a clear understanding of the GST rates with HSN code for different categories of goods and services helps businesses with accurate pricing, invoicing, and tax compliance. So, it is important for businesses to stay updated with any changes or updates to the HSN code list and GST rates to ensure full compliance with the law.

  1. Where do you need to mention HSN code?

    You need to mention HSN code list on bills of supply, GSTR-1 return and invoices.

  2. What is the difference between HSN and SAC code?

    The HSN codes are meant for goods or products whereas SAC (Service and Accounting Code) specify services only.

  3. Is HSN code mandatory?

    Yes, HSN code list is mandatory in GST invoices.

  4. Can we send a GST bill without HSN code?

    No, you can not send a GST bill without the HSN code.

  5. Is HSN the same for all countries?

    HSN is introduced by the World Customs Organization (WCO) to classify goods. HSN are similar in countries that are under the WCO.

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Published On: February 8, 2024

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