HSN Code Tracker
Having trouble classifying your products? Use our advanced HSN Code Tracker to enhance discovery and find out about their discovery.
What is HSN Code?
Harmonized System of Nomenclature, or HSN, is formulated to make the lives of manufacturers, exporters, and importers easy by simplifying product classification. HSN Code is the Indian alternative for the HS Code, developed by the World Customs Organization.
Businesses all over the world use it as a standardized system for goods categorization. In India, HSN Code uses 4, 6, and 8 digits to file and index more than 5000 products.
Why is the HSN Code important?
As a globally-recognized standard, HSN Code is a trusted method used by businesses all over the world. It is considered infallible and dependable – and indispensable when it to comes to categorization.
Every country further adds digits for more detailed classification to their code systems. The US variant, known as HTC or Harmonized Tariff Schedule, has 10 digits. In India, the system uses 4, 6, and 8 digits.
Why is the HSN Code used?
HSC Code provides an all-important system for catalog products. It is internationally accepted as a logical arrangement that’s crucial for foreign and domestic trade. It is instrumental in gathering data and understanding internal and external trade scenarios.
It is highly efficient, not only for traders but also the government, which refers to the systemized data to get a clear picture before developing macroeconomic policies that enhance commodity trading.
Who provides HSN Code?
The Directorate General of Foreign Trade, or DGFT, is responsible for providing the HSN Code – including alterations, formulation, or additions of new codes. An essential part of perfecting the system of HSN Codes is changing product descriptions, removing defunct codes, and adding new codes etc., periodically.
How to find HSN Code using HSN Code finder?
Search By Product Name: Type the name of your product, you will get recommendations of the most relevant 4 digit HSN Codes. Hit search for all results if the recommendations do not contain the right HS code. Click on the 4 digit code to get 6 and 8 digit HS code details for export-import purposes, as well as the GST Rates.
Structure & Bifurcation of HSN Code
Structure of HSN Code :
- There are 21 sections in HSN Codes.
- Divided in 99 Chapters wherein each chapter defines a specific category of a product.
The Bifurcation of HSN Code : The chapters are further into headings, sub-headings, and tariff items. In the 8 digit structure of an HSN Code, the first 2 digits define the Chapter, at 4 digit level are the headings, at 6 digit are the subheadings and finally at 8 digit are the tariff items.
HSN Code and GST
For years other countries are using HSN Codes for the trade. After the introduction of GST in our country, HSN and imports and exports standardize Codes as accepted in the global platform have been adopted.
The use of HSN codes minimize the cost and simplify the customs procedure.
The HSN codes help all the taxpayers, to know about GST rates against a particular product. It is mandatory to mention the HSN codes while filling the GSTR forms.
|Turnover* in rupees||No. of digits of HSN to be declared|
|Upto 1.5 crore||0|
|1.5 crore- 5 crore||2|
|More than 5 crore||4|
|Turnover* in rupees||Type of invoice document||No. of digits of HSN to be declared|
|Up to 5 crore||Mandatory for B2B tax invoices||4|
|Optional for B2C tax invoices||4|
|More than 5 crore||Mandatory for all invoices||6|
- These HSN codes must be declared in every tax invoice issued by the taxpayer under GST.
- All 8 digits of HSN code is mandatory in case of export and imports under the GST.