Taxation
HSN Code in GST: How Many Digits on Your Invoice?
What an HSN code is, 4 or 6 digits by turnover, SAC codes for services, how to find the right code, and how the HSN summary in GSTR-1 works.
In short
An HSN code is the internationally used number that classifies goods (SAC does the same for services). Under GST, a business with turnover up to ₹5 crore must print at least a 4-digit HSN on B2B invoices, and a business above ₹5 crore must print 6 digits on every invoice; the same codes are reported in the HSN summary of GSTR-1.
- HSN stands for Harmonized System of Nomenclature; India uses up to 8 digits, the first 6 shared worldwide.
- Turnover up to ₹5 crore: 4 digits on B2B invoices, optional on B2C. Above ₹5 crore: 6 digits on all invoices.
- Services use SAC codes, which start with 99 and are 6 digits long.
- The GST rate follows the HSN code, so a wrong code can mean the wrong tax.
- GSTR-1 Table 12 needs an HSN-wise summary, now reported separately for B2B and B2C.
What is an HSN code?
HSN stands for Harmonized System of Nomenclature. It is a numbering system, run by the World Customs Organization, that gives every kind of product a code. A plastic bucket, a mobile phone and a bag of rice each sit under a different heading, and the same 6-digit heading means the same product in India, Dubai or Germany.
India uses HSN in customs and in GST. GST rate schedules are written against HSN headings, so the code you choose for an item largely decides the tax rate on it.
Services have their own system: SAC (Services Accounting Code). SAC codes start with 99 and have 6 digits.
How an HSN code is built
An 8-digit Indian HSN code breaks down like this:
| Digits | Level | Example: 3923 10 90 |
|---|---|---|
| First 2 | Chapter | 39 — Plastics and articles thereof |
| First 4 | Heading | 3923 — Articles for the conveyance or packing of goods, of plastics |
| First 6 | Sub-heading | 3923 10 — Boxes, cases, crates and similar articles |
| All 8 | Tariff item (India) | 3923 10 90 — Others |
The first 6 digits are the same in every country. The last 2 are India’s own.
How many HSN digits must your invoice show?
The requirement depends on your aggregate turnover in the previous financial year:
| Previous-year turnover | B2B invoice (registered buyer) | B2C invoice (consumer) |
|---|---|---|
| Up to ₹5 crore | At least 4 digits | Optional |
| Above ₹5 crore | At least 6 digits | At least 6 digits |
| Exporters and importers | 8 digits (customs requirement) | — |
The same digits apply to SAC codes for services.
Two practical points:
- More digits are always allowed. If your supplier’s bill shows 8 digits, you can print 8.
- The rule is per invoice, not per item type. A ₹4 crore trader selling to a GST-registered retailer needs 4 digits on every line of that bill.
Common HSN and SAC codes (examples)
| Product or service | Code |
|---|---|
| Rice | 1006 |
| Medicines, packed for retail sale | 3004 |
| Plastic boxes, crates, bags for packing | 3923 |
| T-shirts and vests, knitted | 6109 |
| Mobile phones | 8517 |
| Furniture | 9403 |
| Road transport of goods (transporter, GTA) | SAC 996511 |
| Accounting and bookkeeping services | SAC 998222 |
These are examples to show the shape of a code, not a substitute for classifying your own items. Rates are not listed here because many changed with the 2025 GST rate rationalisation; see the GST rates 2026 slab list for the current slabs.
How to find the right HSN code
- Start with your purchase invoice. Your supplier has already classified the item. If you resell it unchanged, the code is usually the same.
- Search the official tools. The GST portal’s HSN search and CBIC’s GST rate finder let you search by product name.
- Read the chapter notes for edge cases. A product made of mixed materials, a set or a kit is classified by rules in the Customs Tariff, not by the most obvious word in its name.
- Ask once, save forever. When a CA confirms a code, save it on the item in your billing software so nobody has to guess again.
HSN summary in GSTR-1 (Table 12)
Every GSTR-1 includes an HSN-wise summary of outward supplies: for each code, the unit, total quantity, taxable value and tax by head. Recent changes made this table stricter:
- Codes are picked from a list on the portal rather than typed freely, with the minimum digits enforced by turnover.
- B2B and B2C supplies are reported in separate HSN tabs.
- The totals are expected to agree with the rest of the return.
The easy way to get Table 12 right is not to build it separately at all. If the code sits on the item and the item sits on every invoice line, the HSN summary is simply a sum of your invoices. For the full return, see GSTR-1 kaise bhare.
Mistakes that cause trouble
- One code for the whole shop. A hardware store that puts every item under one heading is charging the wrong rate on some of them.
- Copying the rate but not the code. The rate is right today, but when rates change by heading, the item is not updated.
- Fewer digits than required. A ₹6 crore business printing 4 digits does not meet the rule.
- Different codes for the same item on different bills. This shows up directly in the HSN summary.
- Using HSN for a service. A repair charge or freight line needs a SAC code, not the HSN of the goods.
Where HSN fits on the invoice
The HSN or SAC code is one of the particulars a tax invoice must carry under Rule 46, next to description, quantity, taxable value and tax. The full list is in GST invoice format: mandatory fields. You can make a correct invoice with HSN codes using the free GST invoice generator.
In VyapRise you save the HSN or SAC code and GST rate on the item once. Every invoice line, print and report then uses it, and the HSN summary for GSTR-1 is built from your bills.
Classification and the minimum-digit rules here are as of October 2026. For a product whose classification is genuinely unclear, take your CA’s advice.
How VyapRise handles this
HSN saved on the item
In VyapRise the HSN or SAC code and the GST rate are saved once on the item and flow to every invoice line, print and report. The HSN finder shows codes you already use first, then about 178 common headings.
HSN summary built for you
The HSN summary report adds up quantity, taxable value and tax per code from your invoices, ready for GSTR-1 Table 12 (GST reports are on the Pro plan).
Frequently asked questions
Is the HSN code mandatory on a B2C invoice?
For a business with aggregate turnover up to ₹5 crore in the previous year, HSN is optional on invoices to unregistered buyers and mandatory (4 digits) on B2B invoices. Above ₹5 crore, a 6-digit HSN is required on every invoice, B2B and B2C.
What is the difference between HSN and SAC?
HSN classifies goods; SAC (Services Accounting Code) classifies services. SAC codes start with 99 and have 6 digits, for example 996511 for road transport of goods. Both are printed in the same column of a GST invoice.
Can I write an 8-digit HSN code if only 4 are required?
Yes. Writing more digits than the minimum is allowed and is common for importers and exporters, who must use 8 digits. Fewer digits than required is the problem.
What if I use the wrong HSN code?
A wrong code can lead to the wrong GST rate, which means short-paid tax with interest, or excess tax charged to your buyer. It can also trigger a penalty for an incorrect invoice. Confirm doubtful classifications with your CA or the CBIC tariff.
Where do I find the HSN code for my product?
Check your supplier's purchase invoice first, then the GST rate finder on the CBIC website or the GST portal's HSN search. For anything unusual, the Customs Tariff chapter notes decide the classification.
Does the HSN code decide the GST rate?
Mostly yes. GST rate schedules are written against HSN headings, so the code you choose points to a rate. Some items carry different rates by price or condition, such as garments and footwear above and below a per-piece value.