HSN Code: Full Form, Meaning & How to Find It?
TL;DR - Summary
- What is the full form of HSN code? - HSN stands for Harmonized System of Nomenclature, a standardized system for classifying goods by their nature, characteristics, composition and function. HSN codes are used for GST, customs, invoicing and trade documentation.
- Where can you find an HSN code? - You can find an HSN code through the GST portal's HSN/SAC search facility, through CBIC customs tariff resources, and through the official HSN and customs tariff schedules.
- How is an HSN code structured? - An HSN code runs to six digits internationally, where the first two are the chapter, the next two the heading and the last two the subheading. India adds two more digits for the tariff item, giving an eight-digit code such as 22021010.
- What is the difference between HSN and SAC? - HSN classifies physical goods and SAC classifies services, so a product that ships gets an HSN code and a service that is delivered gets a SAC code. Every SAC code is 6 digits and starts with 99.
What Is the Full Form and Meaning of HSN Code?
HSN stands for Harmonized System of Nomenclature. It's a standardized system that classifies goods by their nature, characteristics, composition, function and other relevant attributes, and it gives international trade a single common framework, so the same product carries the same classification wherever the invoice is read. HSN applies to physical goods only. Services are classified separately, under Services Accounting Codes (SAC).
For example, HSN 0901 refers to coffee under the HSN classification. The first two digits, 09, identify the chapter for coffee, tea, mate and spices, while 01 identifies the heading for coffee.
💡 QUICK INSIGHT
The Harmonized System is developed and maintained by the World Customs Organization (WCO), and the international classification runs to six digits. Countries can add more digits for national detail, India uses eight digits for its customs tariff. The WCO revises the system every five to six years, most recently in 2022, adding classifications for advanced technology, environmental monitoring and health products.
What Is an HSN Code Used For?
An HSN code does five jobs once it sits on your paperwork, tax classification, customs clearance, invoicing and documentation, GST reporting, and international trade statistics.
- Tax classification: it classifies goods for GST and customs, and determines the relevant tax treatment when read alongside applicable GST schedules.
- Customs clearance: it classifies goods for imports and exports at customs.
- Invoicing and documentation: it identifies products consistently across invoices and trade documentation.
- GST reporting: it supports GST reporting and invoice compliance.
- Trade statistics: it maintains import and export trade statistics.
Where to Find HSN Code?
You can find HSN codes through the GST portal, CBIC customs resources, and the official customs tariff schedules. The GST portal is useful for a quick product search, while CBIC and the tariff schedules provide more detailed classification information for specialised products and imports or exports.
GST Portal's HSN/SAC Search Tool
- GST Portal's HSN/SAC Search Tool — Go to Services → User Services → Search HSN Code. You don't need to log in to use the search facility.
- Search using the product name or description to find the relevant HSN classification and associated GST rate information.
- The search facility uses AI and machine learning and is linked to the e-invoice declaration database, allowing it to learn from taxpayer classification patterns.
- Use a specific product description rather than a broad category, then compare the result with the actual goods you supply before selecting the code.
Third-Party HSN Code Finder Tools
If you want a faster, user-friendly search experience without browsing complex tariff schedules, several accounting platforms and trade fintech tools offer free, instant online HSN/SAC lookups:
- ClearTax HSN Code Finder — Enter any product keyword or broad industry term to quickly get matching 4, 6, and 8-digit HSN codes alongside their official GST rates.
- Tally Solutions GST Rate & HSN Finder — A direct lookup tool tailored for GST billing that lets you search by product description, auto-categorizes items, and shows mandatory digit requirements based on turnover.
- Drip Capital HSN Code Search — Useful for cross-border exporters and traders, this tool allows you to search via category hierarchies or keywords to cross-reference Indian 8-digit trade codes with applicable export/import descriptions.
Note: While third-party finders make search much faster, always double-check your final 8-digit selection against your official tax invoice specifications or e-invoice requirements.
Information Needed to Find the Right HSN Code
Gather these before you search, because the classification turns on them.
- Product name.
- Product description.
- Material or composition.
- Primary function or intended use.
- Technical specifications.
- Whether the product is finished, semi-finished or a component.
- Manufacturing process, where relevant.
- Product form, packaging or presentation, where relevant.
How to Check Whether an HSN Code Is Correct
Once you have a code, run it through four checks before it goes on an invoice.
- Match the official description against the actual product.
- Check the relevant chapter and heading notes.
- Look for a more specific subheading where one applies.
- Verify the applicable GST or customs classification.
Avoid relying only on an old invoice, a supplier-provided code, a marketplace listing or a generic search result. Any of those can be right, and none of them is a verification.
What Is the Structure of an HSN Code?
An HSN code is read in pairs, from broad to specific. The first two digits are the chapter, the next two the heading, and the next two the subheading, which is the six-digit international structure. India adds two more digits for the tariff item, making eight. Read 22021010 that way and you get 22 for beverages, spirits and vinegar, 2202 for waters including mineral and aerated waters, 220210 for waters containing added sugar, and 22021010 for aerated water containing added sugar.
HSN Code Structure
The international HSN structure runs XX XX XX.
- First 2 digits: chapter, the broad category of goods.
- Next 2 digits: heading, a more specific category within the chapter.
- Last 2 digits: subheading, a further classification of the goods.
India's eight-digit structure runs XX XX XX XX.
- The first six digits follow the international HSN structure.
- The final two digits are the tariff item and provide additional Indian classification.
- The extra digits allow more specific identification of goods under India's tariff system.
How to Read an HSN Code
Work through the code two digits at a time, using 22021010 as the worked example.
Anatomy of an HSN Code
Reading 22021010 from broad to specific
Chapter, the broad category
22 = Beverages, spirits, and vinegar.
Heading, the product group
2202 = Waters, including mineral and aerated waters.
Sub-Heading, the detailed type
220210 = Waters containing added sugar.
Tariff Item, the exact product
22021010 = Aerated water containing added sugar.
The numerical code should always be read alongside its official product description and the relevant tariff notes. The digits narrow the category. The description is what confirms you landed on the right one.
Examples of Commonly Used HSN Codes
Here are codes exporters ask about often. Treat this as a quick reference, not a classification list.
| Product | HSN code |
|---|---|
| Coffee, not roasted, not decaffeinated | 09011110 |
| Cotton t-shirts | 61091000 |
| Handmade jewellery | 71131900 |
| Laptops and portable computers | 84713010 |
| Other communication devices, such as routers and modems | 85176290 |
| Carpets and other textile floor coverings, knotted, of wool | 57011010 |
The exact six or eight-digit classification can vary with the product's material, composition, function, specifications and intended use, so a code that fits one exporter's product will not automatically fit yours. Verify the applicable code against the official tariff or GST classification before it goes on an invoice or an export document.
HSN Code vs SAC Code
HSN classifies goods and SAC classifies services. HSN, or Harmonized System of Nomenclature, identifies the physical goods being supplied, while SAC, or Services Accounting Code, identifies the service being provided. The deciding factor is what you are billing for: a product that is supplied as goods uses HSN, while a service uses SAC.
A SAC is a six-digit code used in India’s GST system to classify services and determine the applicable tax treatment. Like HSN, it provides a standardised way to classify supplies, but it is used specifically for services.
Every SAC code follows a 99XXXX format:
- First two digits (99): Identify the supply as a service.
- Next two digits: Identify the broader service category.
- Last two digits: Identify the specific service.
For example, 998314 covers IT design and development services. The 99 identifies it as a service, 83 identifies the broader professional and technical service category, and 14 identifies the specific service.
HSN vs SAC: Key Differences
| HSN | SAC |
|---|---|
| Used for goods, and classifies physical products | Used for services, and classifies services |
| Used by manufacturers, traders, sellers, importers and exporters | Used by consultants, freelancers, agencies, software and service providers, and other service businesses |
| Appears against applicable goods on invoices | Appears against applicable services on invoices |
| Product characteristics determine the classification | The nature and category of the service determine the classification |
| Example: coffee, not roasted, not decaffeinated (HSN 09011110) | Example: IT consulting and support services (SAC 998313) |
Where to Use HSN and SAC
- Sale of physical goods: use HSN.
- Supply of services: use SAC.
If you supply both, you may carry both classifications on the same invoice, against the relevant line items. A single invoice covering a website build and a digital marketing retainer can legitimately carry 998314 for the development portion and 998365 for the advertising portion.
Where your customer sits does not settle this. The domestic or international location of the buyer does not by itself determine whether HSN or SAC applies. The nature of the underlying supply does.
HSN and SAC for Exporters
If you export physical goods, you use the relevant HSN classification, and imports and exports require the full eight-digit code. If you export services, you use the relevant SAC classification instead.
Your export invoice has to describe the underlying goods or services accurately, and the classification is only one part of what export invoicing and compliance ask of you.
💡 QUICK INSIGHT
All SAC codes start with 99, which is your first clue that you are dealing with services.HSN codes are 8 digits and mandatory for exports and imports. SAC codes are 6 digits and mandatory for service providers with a turnover above Rs. 5 crore.
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What Is the Full Form of HSN Code?
HSN stands for Harmonized System of Nomenclature. It is used to classify goods for taxation, customs, invoicing and trade purposes, and it is maintained by the World Customs Organization.
What Is an HSN Code Used For?
Where Can I Find My HSN Code?
How Many Digits Are in an HSN Code?
What Is the Difference Between HSN and SAC?
Can I Use the Same HSN Code for Different Products?
Do Exporters Need an HSN Code?
Why Is the Correct HSN Code Important?
