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GST HSN Code

What is HSN Code?

HSN refers to Harmonized System of Nomenclature. This system was developed by the World Customs Organization (WCO) with the primary purpose of classifying goods all over the World in a systematic manner. HSN comprises of a 6-digit uniform code that classifies 5000+ products with worldwide acceptance. It was implemented in 1988. In addition to classification, HSN code is used for taxation purposes in identifying the rate of tax applicable to a product in a country. HSN is applicable in India after implementation of GST. Previously, India was already using HSN system in the Central Excise and Customs regime.

Importance of GST HSN Code

HSN facilitates proper classification of goods from all over the world in a systematic and logical manner. This enables uniform classification of goods and facilitates international trade.

Understanding the HSN Code

The HSN consists of 21 sections, with 99 chapters, about 1,244 headings, and 5,224 subheadings. Each section is divided into Chapters followed by headings and subheadings. The headings and subheadings describe specific products in detail, while sections and chapter titles describe broad categories of goods.

How Does HSN Code Work?

Let us illustrate this with an example: The six digit HSN code assigned to handkerchiefs made of textile is 62.13.90.

  1. (62) denotes the chapter number for Articles of apparel and clothing accessories, not knitted or crocheted.
  2. (13) denotes the heading number for handkerchiefs.
  3. (90) denotes the product code for handkerchiefs made of other textile materials.

In India, the following 6 digit code has be revised to 8 digits for further classification. For example, if the above handkerchiefs were made out of man-made fibre, then the HSN code would be 62.13.90.10.

GST HSN Provisions

  1. Services are also classified uniformly for recognition, measurement and taxation. This is called Service Accounting Code or SAC.
  2. HSN Codes are to be declared in every tax invoice issued by the taxpayer under GST. The turnover for the previous year is considered as a basis to find out number of HSN digits. It is (0) for upto Rs. 1.5 crore, (2) for Rs. 1.5 crore - Rs. 5 crore and (4) for more than Rs. 5 crore.
  3. All 8 digits of HSN code is mandatory in case of exports/imports under GST.

GST HSN List

Note: All information has been sourced from the official website of Myanmar National Trade Portal

SectionsHSN Code List for
Section 1Live Animals, Animal Products
Section 2Vegetable Products
Section 3Animal or Vegetable Fats and Oils and their cleavage products, prepared edible fats, Animal or Vegetable waxes
Section 4Prepared Foodstuffs, Beverages, Spirits and Vinegar, Tobacco and Manufactured Tobacco Substitutes
Section 5Mineral Products
Section 6Product of the chemicals or allied Industries
Section 7Plastics and articles thereof, Rubber and articles thereof
Section 8Raw hides and skins, Leather, Furskins and articles thereof, saddlery and harness, travel goods, handbags and similar containers, articles of animal gut ( other than silk-worm gut )
Section 9Wood and articles of wood, Wood charcoal, Cork and articles of cork, Manufacturers of straw, of Esparto or of other Plaiting Materials, Basketwork and Wickerwork
Section 10Pulp of wood or of other Fibrous Cellulosic Material, Recovered ( Waste and scrap ) paper or paperboard, paper and paperboard and articles thereof
Section 11Textile and textile articles
Section 12Footwear, 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 13Articles of stone, plaster, cement, asbestos, mica, or similar materials, ceramic products, glass and glassware
Section 14Natural or cultured pearls, Precious or semi-precious stones, precious metals, Metal clad with precious metal, and articles thereof, Imitation Jewellery, Coins
Section 15Base Metals and articles of Base Metal
Section 16Machinery and mechanical appliances, electrical equipment, parts thereof; sound recorders and reproducers, television image and souch recorders and reproducers, and Parts and Accessories of such article
Section 17Vehicles, Aircraft, Vessels and Associated Transport Equipment
Section 18Optical, Photographic, Cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus, clocks and watches, musical instruments, parts and accessories thereof
Section 19Arms and ammunition, parts and accessories thereof
Section 20Miscellaneous Manufactured Articles
Section 21Works of art, Collectors' Pieces and antiques

FAQs on GST HSN Code

How many merchandises are classified under HSN?

Over 98% of the merchandise in international trade is given an HSN code.

How many countries use HSN code?

The HSN system is used by more than 200 countries worldwide.

How can I find a product’s GST HSN code?

You can search for a HSN calculator online. It is a free to use tool to find out both HSN codes of goods & SAC codes of services.

What is UQC?

stands for Unique Quantity Code.

What is UQC under GST?

As per CGST, all tax invoices, credit/debit note must have UQC or quantity unit description.

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