HSN Code on Invoice: How Many Digits and How to Find It

An HSN code is the number that classifies a product for GST, and it has to appear against each item on your tax invoice. At the time of writing, B2B invoices from businesses with turnover up to ₹5 crore need at least 4 digits, and businesses above ₹5 crore need 6 digits. The easiest place to find the right code is your own supplier's invoice, cross-checked on the GST portal. Because GST rates are tied to HSN headings, getting the code right is also how you get the rate right.

For a wholesaler with hundreds of SKUs, HSN is not a one-time job. New products arrive, packs change, and rates get revised. A small mistake on one product repeats on every invoice that carries it.

This is general guidance. Classification can be tricky for some goods, so confirm codes and rates for your products with your chartered accountant.

What is an HSN code?

HSN stands for Harmonised System of Nomenclature, an international system for naming and numbering traded goods. India uses it for customs and for GST. The code gets more specific as it gets longer:

Digits	Level	What it tells you
2	Chapter	A broad group of goods
4	Heading	A type of product within the chapter
6	Sub-heading	A narrower category, common internationally
8	Tariff item	India's most detailed level

So a 4-digit code is a "family" of products, and the 6- and 8-digit codes narrow it down. Services use a different code called SAC (Services Accounting Code), but for a goods wholesaler, HSN is what matters.

How many HSN code digits does your invoice need?

The rule is based on your aggregate turnover in the previous financial year. At the time of writing:

Previous year turnover	B2B tax invoices	B2C tax invoices
Up to ₹5 crore	4 digits	Optional
Above ₹5 crore	6 digits	6 digits

Showing more digits than required is generally fine; showing fewer is not. Many businesses simply use 8 digits for every product so they never have to switch when turnover grows. Your returns also include an HSN-wise summary of sales, so the code on your invoices and the code in your returns should match.

These thresholds have changed before and could change again, so check with your CA each year.

How to find the right HSN code

1. Look at your purchase invoice. Your supplier or the brand's distributor has already classified the product. Use that as your starting point.
2. Check it on the GST portal. The portal has an HSN search where you can look up a code and its description.
3. Read the rate schedule. GST rates are notified against HSN headings and product descriptions. Make sure the description matches what you actually sell.
4. Watch for look-alike products. Similar-looking items can sit under different headings depending on what they are made of, how they are packed or how they are used.
5. Write it down once. Store the code with the product in your system, not in someone's memory.

If two suppliers show different codes for the same product, do not just pick one; raise it with your CA.

Why the HSN code matters

• It drives the rate. A wrong code often means a wrong GST rate, which means the wrong tax on every invoice.
• It affects your buyer. Retailers who claim input tax credit rely on your invoice being correct.
• It shows up in returns. The HSN summary in your return is built from your invoices. Mismatches can lead to questions.
• It keeps the catalogue clean. Products grouped by HSN are easier to update when a rate changes.

What changed in 2025

GST rates on many goods were revised in 2025. If your catalogue was set up before that, go through it product by product and confirm both the HSN and the current rate. In this article we deliberately do not list rates for specific products, because any list can go out of date. Your CA and the current notifications are the right source.

Keeping HSN codes correct across a big catalogue

A wholesaler might stock 300 to 3,000 SKUs. A few habits help:

• Make HSN a required column when you add a new product.
• Fill codes in bulk. Export your product list, fill the HSN column in a spreadsheet with your accountant, and upload it back.
• Review by category. Check all biscuits together, all soaps together, all oils together. Inconsistencies stand out.
• Re-check when rates change. When a rate revision is announced, filter by the affected headings and update both rate and code if needed.
• Spot-check printed invoices. Once a month, pick ten invoices and check every HSN against your master list.

Habit	How often	Who
HSN required for new SKUs	Every new product	Whoever adds products
Bulk review with accountant	Once a year, and after rate changes	Owner and CA
Spot-check invoices	Monthly	Owner or billing staff

HSN code checklist

• Every product in your catalogue has an HSN code.
• The number of digits meets the requirement for your turnover.
• The GST rate set for each product matches the current rate for that code.
• Codes match what your suppliers show, or the difference is explained.
• Your invoices print the code on every line.

How MaalMitra helps

MaalMitra keeps HSN with the product, so it flows to the invoice without anyone typing it at billing time.

• HSN per product. Wholesalers set the HSN code and GST rate on each product in their catalogue.
• CSV bulk upload with an HSN column. New SKUs are created and existing SKUs are updated, so you can fill or correct HSN for the whole catalogue in one go.
• HSN on every invoice line. The GST tax invoice created on delivery shows HSN, description, quantity, taxable value, GST rate and tax for each line, with a rate-wise summary.
• CGST + SGST or IGST by GSTIN state, worked out from the state codes in the seller's and buyer's GSTINs, with print and PDF.

MaalMitra does not file returns or produce your return's HSN summary for you, so share your invoice data with your CA as usual.

For the full list of fields a tax invoice needs, see our guide to the GST invoice format. If your rates include tax, read how to work out the taxable value from a GST inclusive price.

The bottom line

The HSN code is a small number that does a lot of work: it classifies the product, decides the rate and links your invoices to your returns. Use enough digits for your turnover, take your supplier's code as a starting point, confirm it on the portal and with your CA, and keep it stored with each product so every invoice gets it right.

Want HSN to appear correctly on every bill without retyping? Get started free with MaalMitra.