HSN Codes & GST Rates

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Last updated on October 11th, 2021

HSN and SAC Codes are used to classify goods and services under GST. HSN i.e. Harmonized System of Nomenclature Code used to classify different goods under GST. Where as, SAC i.e. Service Accounting Code used to classify different services under GST.

HSN and SAC Codes are divided into the following categories.

Section and Chapters Includes
Section I (Chapters 1 to 5) live animals and animal products
Section II (Chapters 6 to 14) vegetable products
Section III (Chapter 15) Animal or Vegetable Fats and Oils and their cleavage products
Section IV (Chapters 16 to 24) Beverages, Spirits, Vinegar, and Tobacco
Section V (Chapters 25 to 27) Mineral Products
Section VI (Chapters 28 to 38) Chemical and Para-Chemical Products
Section VII (Chapters 39 to 40) Plastics and Rubber, and Articles thereof
Section VIII (Chapters 41 to 43) Certain Animal Hides and Skins
Section IX (Chapters 44 to 46) Wood, Cork, Manufactures of Straw, and Articles thereof
Section X (Chapters 47 to 49) Pulp of Wood, Paper, Paperboard, and Printed products
Section XI (Chapters 50 to 63) Textiles and Textile Articles
Section XII (Chapters 64 to 67) Footwear, Headgear, Umbrellas, Walking Sticks, Prepared Feathers, Artificial Flowers, and Articles of Human Hair
Section XIII (Chapters 68 to 70) Articles Made of Minerals, Stone, Plaster, Cement, etc., and Ceramic and Glass Products
Section XIV (Chapter 71) Precious Metals and Stones
Section XV (Chapters 72 to 83) Base Metals and Articles thereof
Section XVI (Chapters 84 to 85) Machinery and Mechanical Appliances, Electrical Equipment, Sound Recorders and Reproducers, Television Image and Sound Recorders and Reproducers, and Parts and Accessories of such Articles
Section XVII (Chapters 86 to 89) Vehicles, Aircraft, Vessels, and Associated Transport Equipment
Section XVIII (Chapters 90 to 92) Optical, Photographic, Cinematographic, and Musical Apparatus and Equipment; Measuring, Medical, Surgical, and Other Instruments; and Clocks and Watches
Section XIX (Chapter 93) Arms and Ammunitions
Section XX (Chapters 94 to 96) Miscellaneous Manufactured Articles
Section XXI (Chapters 97 to 99)

Arts, Collector’s Pieces, and Antiques


Section I : Live Animals; Animal Products

Section I contains classifications under Chapter 1 to Chapter 5.

Section II : Vegetable Products

Section II contains classifications under Chapter 6 to Chapter 14.

Section III : Animal or Vegetable Fats and Oils and their cleavage products

Section III contains classifications under Chapter 15.

Section IV : Prepared Foodstuffs, Beverages, Spirits and Vinegar, Tobacco and Manufactured Tobacco Substitutes Products

Section IV contains classifications under Chapter 16 to Chapter 24.

Section V : Mineral Products

Section V contains classifications under Chapter 25 to Chapter 27.

Section VI : Products of the Chemical or Allied Industries

Section VI contains classifications under Chapter 28 to Chapter 38.

Section VII : Plastics; Rubber and Articles Thereof

Section VII contains classifications under Chapter 39 and Chapter 40.

Section VIII: Raw Hides and Skins, Leather, Fur Skins and articles thereof; Saddlery and Harness; Travel Goods, Handbags and similar Containers; Articles of Animal Gut (Other than Silk-Worm Gut)

Section VI contains classifications under Chapter 41 to Chapter 43.

Section IX: Wood and Articles of Wood; Wood Charcoal; Cork and Articles of Cork; Manufactures of Straw, of Esparto or of Other Plaiting Materials; Basket Ware and Wickerwork.

Section IX contains classifications under Chapter 44 to Chapter 46.

Section X: Pulp of wood or of other Fibrous Cellulosic Material, Recovered (Waste and scrap) paper or paperboard, paper and paperboard and articles thereof

Section X contains classifications under Chapter 47 to Chapter 49.

Section XI: Textile and textile articles

Section XI contains classifications under Chapter 50 to Chapter 63.

Section XII: Footwear, Headgear, Umbrellas, Sun Umbrellas, Walking-Sticks, Seat-Sticks, Whips, Riding-Crops and Parts thereof; Prepared Feathers and Articles Made Therewith; Artificial Flowers; Articles of Human Hair

Section XII contains classifications under Chapter 64 to Chapter 67.

Section XIII: Articles of stone, plaster, cement, asbestos

Section XIII contains classifications under Chapter 68 to Chapter 70.

Section XIV: Articles of stone, plaster, cement, asbestos

Section XIV contains classifications under Chapter 71.

Section XV: Articles of stone, plaster, cement, asbestos

Section XV contains classifications under Chapter 72 to Chapter 83.

Section XVI: Machinery and mechanical appliances; electrical equipment

Section XVI contains classifications under Chapter 84 and Chapter 85.

Section XVII: Vehicles, aircraft, vessels and associated transport equipment

Section XVII contains classifications under Chapter 86 to Chapter 89

Section XVIII: Optical, Photographic, Cinematographic, Musical, Medical, Surgical and other precision instruments; Clocks and watches

Section XVIII contains classifications under Chapter 90 to Chapter 92

Section XIX: Arms and ammunition; Parts and Accessories Thereof

Section XIX contains classifications under Chapter 93

Section XX: Miscellaneous manufactured articles

Section XX contains classifications under Chapter 94 to Chapter 96

Section XXI:

Section XXI contains classifications under Chapter 97 to Chapter 99

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How HSN codes are unique?

HSN codes are unique for each product. Under HSN, all the goods and services are divided into 21 sections, 99 chapters. Under 99 chapters there are 1244 headings and 5244 subheadings. Each item which is used for trade or commercial use, it is identified with 8 digit code using the HSN code rules.

Who needs an HSN code?

Taxpayers having turnover exceeds Rs. 1.5 crore but up to 5.00 crore will be required to mention only two digits of HSN code. Taxpayers having turnover exceeds Rs 5.00 crore will be required to mention four digits of HSN code.

Is it compulsory to use the HSN Code?

HSN Code must be used by all dealers except in the following cases:
> Dealers who have an Annual Turnover of less than Rs.1.5 Cr
> Dealers who have registered to pay tax under the Composition Scheme

Got Questions? Ask Away!

  1. Hey @HarishMehta

    From 1st April 2021, Taxpayers with an aggregate Annual Turnover of more than INR 5 Crore during the financial Year 2020-2021 have to mandatorily mention 6 digits of the HSN Code in all tax invoices.

    Businesses with a turnover of up to INR 5 crore in the preceding financial year will be required to mandatorily furnish 4 digit HSN code on B2B invoices.

    Hope this helps!

  2. Hey @Dia_malhotra

    Let’s take an example of Cocoa powder to calculate the GST using the HSN code.

    Cocoa Powder per Kg = INR1,000.
    HSN Code = 18 05 00 00
    GST Rate = 18% (For Cocoa powder, not containing added sugar or sweetening matter)
    Therefore, GST = INR180

    Hope this helps!

  3. Hey,

    What are the consequences of not mentioning or incorrectly mentioning the HSN Code?

  4. Hey @SonalYadav

    It is very crucial to mention the correct HSN/ SAC Code on the tax invoices and Form GSTR-1, barring to do so may attract a penalty of INR 50,000 (INR 25,000 each for CGST and SGST) for non-mentioning or incorrect mention of wrong HSN/ SAC Code under Section 125 of the CGST Act.

    Hope this helps!

  5. Hey @Prasana_Srinivasan, this tool can help

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