What is hsn code in invoice: it is the Harmonized System code that identifies the goods on each line of a tax invoice, and the number of digits you must print depends on your turnover. A business with aggregate turnover up to Rs 5 crore in the previous year must print a 4 digit HSN on B2B invoices; above Rs 5 crore, at least 6 digits on all invoices.
Eight digits are used in customs for imports and exports, and are required for certain notified chemicals. The same digit rule applies to SAC codes for services. This page explains the rule, examples and the GSTR-1 HSN summary. To check a code, use the HSN code checker.
HSN digits on invoices: codes and GST rates
Item / HSN / GST- Turnover up to Rs 5 crore, B2B invoices18%4 digits required
- Turnover up to Rs 5 crore, B2C invoices18%Optional
- Turnover above Rs 5 crore, all invoices18%6 digits required
- Imports and exports18%8 digits under customs
- Notified chemicals of Chapters 28 and 2918%8 digits on all invoices
- Services (SAC)18%Same 4 or 6 digit rule
Quick facts
Notification
78/2020-Central TaxUp to Rs 5 crore
4 digits on B2B invoicesAbove Rs 5 crore
6 digits on all invoices8 digits
Customs, and notified chemicalsReturns
GSTR-1 Table 12 uses the same digitsTurnover test
Aggregate turnover of the previous financial year
What is hsn code in invoice: the digit rule
| Aggregate turnover (previous year) | B2B invoices | B2C invoices |
|---|---|---|
| Up to Rs 5 crore | 4 digits | Optional |
| Above Rs 5 crore | 6 digits | 6 digits |
| Imports and exports | 8 digits (customs) | 8 digits |
| Notified chemicals (Chapters 28, 29) | 8 digits | 8 digits |
This rule comes from notification 78/2020-Central Tax. A business may always print more digits than required; printing 8 digits is never wrong.
8 digit hsn code turnover limit
There is no turnover above which 8 digits become compulsory under GST for most goods. Eight digits are required for imports and exports under the Customs Tariff Act, 1975, and for a list of notified chemicals. Many larger businesses print 8 digits anyway, because their buyers and their customs filings use them.
Hsn code 8 digit: how the code is built
- 2 digits: chapter, for example 73 for articles of iron or steel.
- 4 digits: heading, for example 7307 for pipe fittings.
- 6 digits: sub-heading, the same worldwide, for example 7307 21 for stainless steel flanges.
- 8 digits: Indian tariff item, for example 7307 21 10.
The meaning of each part is explained under HSN full form, and all chapters appear in the HSN code list.
HSN summary in GSTR-1
Table 12 of GSTR-1 asks for an HSN wise summary of outward supplies, with separate tables for B2B and B2C supplies. The digits used there follow the same rule: 4 digits up to Rs 5 crore turnover and 6 digits above. Returns cannot be filed with a code that is not in the master.
SAC digits for services
The same 4 or 6 digit rule applies to SAC codes. A consultant with turnover above Rs 5 crore prints 998311 rather than 9983. There is no 8 digit SAC under GST; searches for "9987 hsn code 8 digit" or "service charges hsn code 8 digit" can stop at 6 digits. See SAC code.
Invoice example
Invoice line for a trader with Rs 3 crore turnover: Cement, HSN 2523, 100 bags, taxable value Rs 38,000, CGST 9% Rs 3,420, SGST 9% Rs 3,420. The same line for a trader with Rs 8 crore turnover: HSN 2523 29.
The digit rules on this page follow notification 78/2020-Central Tax and the GSTR-1 format as generally applied. Rules for returns and notified goods can change, so check the GST portal and ask a GST practitioner or chartered accountant about your reporting.
Frequently asked questions
What is HSN code in invoice?
It is the code that identifies the goods on each invoice line. Up to Rs 5 crore turnover, 4 digits are required on B2B invoices; above that, 6 digits.
Is 8 digit HSN code mandatory?
Not for most goods under GST. Eight digits are needed for imports and exports and for notified chemicals.
What is the HSN digit limit for B2C invoices?
Optional up to Rs 5 crore turnover, and 6 digits above.
Which turnover decides the digits?
Aggregate turnover of the previous financial year.
Do services need 8 digit SAC?
No. SAC follows the same 4 or 6 digit rule.