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HSN Code- What is HSN Code?

Updated on April 21, 2025 , 14732 views

Harmonized System of Nomenclature(HSN) was established by the World Customs Organization (WCO) in 1988. More than 95% trade around the world is under WCO and usage of HSN codes spread across 200 countries globally.

HSN Code in India

HSN code is important under the Goods and Services (GST) regime in India. India is part of the WCO since 1971. After the successful implementation of the GST, implementing HSN code was important to help India stand at par with other economies in the world. This proved to be an advantage for the Indian Economy as it reduced the cost related to international trade by bringing harmonisation in trade and customs procedures.

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What is the HSN Code?

HSN Code or Harmonized System of Nomenclature is set of 6-digit codes that classify over 5000 products that are accepted and valid worldwide. There are over 5000 commodity goods which are uniquely identified by a 6-digit code. This is arranged in both logical and legal structures for uniform classification.

Why is HSN Important?

The basic purpose of the HSN code is to classify accepted and valid goods all across the globe in a legal and logical manner. This helps easy and uniform classification when it comes to Import and export. It helps make international trade easier and affordable. HSN codes nullify the need to upload detailed descriptions of goods.

India originally used 6-digit HSN codes to classify goods under Customs and Central Excise. Customs and Central Excise added 2 more digits to make the classification crisp and precise later.

It is mandatory to mention correct HSN code during the GST return filing.

Structure of HSN Code

The structure is mentioned below.

1. Section

There are 21 sections in the HSN module

2. Chapter

There are 99 chapters under the HSN module.

3. Heading

There are 1244 headings under the chapters

4. Subheading

There are 5224 subheadings under headings.

Important Note: The first 6 digits of the HSN code cannot be altered under any circumstances. However, the last four digits that are earmarked as Regional and National Tariff can be changed by the customs authority.

Who Should Apply the HSN Code?

The application of the HSN code is mentioned below:

Businesses with a turnover of more than Rs. 1.5 crores, but less than Rs. 5 crores are required to apply 2 digit HSN code.
Businesses with a turnover of more than 5 crores can use 6-digit HSN code.
Businesses dealing with import and export irrespective of turnover should use the 8 digit HSN code.

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HSN Sections

There are 21 sections in HSN, as follows:

Sections	HSN Code List for
Section 1	Live Animals, Animal Products
Section 2	Vegetable Products
Section 3	Animal or Vegetable Fats and Oils and their cleavage products, prepared edible fats, Animal or Vegetable waxes
Section 4	Prepared Foodstuffs, Beverages, Spirits and Vinegar, Tobacco and Manufactured Tobacco Substitutes
Section 5	Mineral Products
Section 6	Product of the chemicals or allied Industries
Section 7	Plastics and articles thereof, Rubber and articles thereof
Section 8	Raw 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 9	Wood 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 10	Pulp of wood or of other Fibrous Cellulosic Material, Recovered ( Waste and scrap ) paper or paperboard, paper and paperboard and articles thereof
Section 11	Textile and textile articles
Section 12	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 13	Articles of stone, plaster, cement, asbestos, mica, or similar materials, ceramic products, glass and glassware
Section 14	Natural or cultured pearls, Precious or semi-precious stones, precious metals, Metal clad with precious metal, and articles thereof, Imitation Jewellery, Coins
Section 15	Base Metals and articles of Base Metal
Section 16	Machinery 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 17	Vehicles, Aircraft, Vessels and Associated Transport Equipment
Section 18	Optical, Photographic, Cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus, clocks and watches, musical instruments, parts and accessories thereof
Section 19	Arms and ammunition, parts and accessories thereof
Section 20	Miscellaneous Manufactured Articles
Section 21	Works of art, Collectors' Pieces and antiques

Conclusion

HSN Codes are extremely important for the smooth functioning of a business. Make sure to carefully identify the correct HSN codes for your goods before filing it under the GST regime.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.