HSN Codes on GST Invoices: How Many Digits and How to Find Them
What HSN and SAC codes are, how many digits you need based on turnover, and how to find the right code for each item.
Gaddibook Team · · 3 min read
HSN codes tell the GST system exactly what you are selling. Getting them right keeps your invoices valid and your GSTR-1 clean.
What is an HSN code?
HSN stands for Harmonized System of Nomenclature, an international system for classifying goods. India uses it under GST to identify each product and its tax rate.
Services use a similar code called SAC (Services Accounting Code). SAC codes start with 99.
How many digits do you need?
| Turnover in the previous financial year | HSN digits on invoices |
|---|---|
| Up to ₹5 crore | 4 digits on B2B invoices (optional on B2C invoices) |
| More than ₹5 crore | 6 digits on all invoices |
The same digit rule applies to the HSN summary (Table 12) in GSTR-1, which covers both B2B and B2C sales.
How an HSN code is built
Each extra pair of digits narrows the product down further:
| Digits | Level | Example |
|---|---|---|
| 2 | Chapter | 09: Coffee, tea and spices |
| 4 | Heading | 0902: Tea |
| 6 | Sub-heading | 090230: Black tea in packs of up to 3 kg |
| 8 | Tariff item | Used mainly for imports and exports |
HSN codes for common shop items
| Item | HSN (4 digits) |
|---|---|
| Rice | 1006 |
| Tea | 0902 |
| Wheat flour (atta) | 1101 |
| Sunflower oil | 1512 |
| Biscuits | 1905 |
| Toothpaste | 3306 |
| Soap | 3401 |
| Mobile phones | 8517 |
| Knitted T-shirts | 6109 |
These are for guidance only. Always confirm the exact code and its current GST rate for your product, because rates for many items changed from 22 September 2025.
How to find the right HSN code
- Use the HSN search on the GST portal (gst.gov.in) or the GST rate finder on the CBIC website.
- Check your purchase bills. Your supplier's invoice usually shows the HSN code for the same item.
- Read the full description, not just the item name. Packing, material and use can change the code.
- If an item could fit under more than one heading, ask your CA before you start billing it.
Common HSN mistakes
- Using a 2-digit chapter code instead of 4 or 6 digits
- Using one HSN code for every item in the shop
- Copying a code from the internet without checking its description
- HSN codes on invoices that do not match the HSN summary in GSTR-1
- Putting an HSN code on a service, which needs a SAC code
What happens if the HSN code is wrong?
A wrong or missing HSN code can attract a penalty under GST. If it also leads to the wrong tax rate, you may have to pay the short tax with interest. It can also cause mismatches in your returns that take time to sort out.
Keep HSN codes in your item list
In Gaddibook, you add the HSN code and GST rate when you create an item, and they appear on every invoice from then on. See inventory management in Gaddibook, and read our guides on how to make a GST invoice and how to file GSTR-1.