HSN (Harmonized System of Nomenclature) is an internationally standardized system for classifying goods. Under GST, HSN codes are used to classify goods and determine the applicable tax rate.
HSN code structure:
- 2 digits: Chapter
- 4 digits: Heading
- 6 digits: Subheading
- 8 digits: Tariff item (India specific)
HSN code requirements:
- Turnover up to Rs 5 crore: 4-digit HSN optional
- Turnover Rs 5-50 crore: 4-digit HSN mandatory
- Turnover above Rs 5 crore: 6-digit HSN mandatory
Examples
- HSN 0401: Milk and cream
- HSN 8471: Computers and accessories