HSN code refers to the Harmonized System of Nomenclature code, a comprehensive international product classification system. Under GST, the structure of HSN code consists of a series of numbers. HSN codes' first two-digit chapters indicate the broader category of goods. The second two-digit digit denotes the heading specifying the type of products within the chapter. The subsequent digit provides further details down to a different product level.
There are some differences between SAC codes and HSN codes. HSN codes are used for classifying goods, whereas SAC codes are used for classifying services. HSN codes follow an 8-digit format, while SAC codes are in a 6-digit format. HSN codes are issued by the World Customs Organization (WCO), and SAC codes are issued by the Central Board of Excise and Customs (CBEC).
As an internationally used standard, the initial 6 digits of the HSN Code are identical to all the countries. But in order to extend classification, more digits have been added to individual HS Code systems by the respective countries. For instance, We have an 4, 6 & 8 digit classification in India whereas the US has HTS Codes called Harmonised Tariff Schedule, which follows a 10 digit classification.
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An HSN (Harmonised System of Nomenclature) code is a 6 to 8-digit uniform code used to classify goods under GST in India.
HSN codes are used exclusively for goods (physical products), while SAC (Services Accounting Codes) are used to classify services. Both serve the same purpose: determining the correct GST rate.
Simply type the name of your product or service into our search bar, or enter a partial code. The tool instantly crawls the latest GST directory to give you the correct code and its corresponding tax rate.
The requirement depends on your business's annual turnover: 1. Turnover up to ₹5 Crores: Minimum 4 digits required (B2B invoices only). 2. Turnover above ₹5 Crores: Mandatory 6 digits required for all invoices.
Yes. When you look up a code using NextBill’s free finder, the tool displays the official GST slab (e.g., 5%, 18%, and 40% ) mapped to that specific product or service category.
Using the wrong code can lead to incorrect tax calculations, which trigger automated tax department notices (like DRC-01C) for revenue mismatches. It can also cause your clients to lose their Input Tax Credit (ITC).
Yes, our online HSN lookup tool is 100% free. You can perform unlimited searches for your inventory or billing setup without registering or providing credit card details.
Our tool pulls data directly via secure APIs linked to official government updates. This ensures you always get the latest amendments, rate changes, and notifications issued by the GST Council.
Just type the nature of your service (e.g., "software development," "consulting," "renting") into the NextBill finder. The system will filter out goods and show you the relevant 6-digit SAC code instantly.
For a composite supply (e.g., a laptop sold with a bag), you use the HSN code of the principal item (the laptop). For a mixed supply sold for a single price, you must use the HSN code that attracts the highest rate of tax.
Our free tool is designed for quick, single searches. For managing entire product lines, NextBill’s main software lets you save custom product catalogues with pre-linked HSN codes for high-speed invoicing.
Yes. For export transactions, mentioning the full 8-digit HSN code is mandatory on shipping bills and export tax invoices to facilitate international trade tracking.
Exempted goods are items that attract 0% GST (like fresh vegetables or milk). Even though they are tax-free, they still have specific HSN codes that must be mentioned on a Bill of Supply.
The 8-digit code has a strict hierarchy: 1. First 2 digits: The Chapter (broad category of goods). 2. Next 2 digits: The Heading (specific type within the chapter). 3. Next 2 digits: The Sub-heading (global standard breakdown). 4. Last 2 digits: The Tariff Item (specific Indian tax classification).
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