Also known as: Harmonized System of Nomenclature · HSN
A 4-, 6-, or 8-digit product classification code used worldwide and required on Indian GST invoices to identify goods and their applicable tax rate.
HSN (Harmonized System of Nomenclature) is a globally standardised product classification system developed by the World Customs Organization. India uses it under the GST regime to identify goods on every invoice and to determine the applicable GST rate. SAC (Services Accounting Code) is the parallel system for services.
The HSN detail required depends on the document, return period, and applicable GST rules. For current GSTR-1 Table 12 validation, taxpayers with aggregate annual turnover up to ₹5 crore report at least four HSN digits and taxpayers above ₹5 crore report at least six. Export and import classifications can require additional detail. Confirm the rule that applies to the exact document and period rather than relying on an old turnover tier.
Incorrect HSN classification is one of the most common GST-notice triggers in India. Two products that look similar (say, ladies' cotton kurta vs ladies' cotton blouse) can fall under different HSN codes with different GST rates, and a wrong code can mean tax shortfall plus interest plus penalty.
ReadyBooks.ai includes searchable HSN/SAC reference data, while the public HSN finder presents a smaller curated reference set. Search results help locate a classification; they are not a promise that a GST rate or legal classification is current for every fact pattern. Once you deliberately assign an HSN/SAC code to an item master, ReadyBooks reuses that saved code on future supported documents until you change it.