HSN Code
A standardized numerical code used to classify traded products under GST, determines the applicable tax rate.
Full definition
HSN (Harmonized System of Nomenclature) codes are internationally standardized six-to-eight digit codes that classify every traded product. Under Indian GST, HSN codes are mandatory on every tax invoice and determine the applicable GST rate. Businesses with turnover above Rs 5 crore must use 6-digit HSN; below that, 4 digits suffice.
For dairy, common HSN codes include 0401 (fresh milk, 0% GST), 0403 (curd and yoghurt, 5%), 0406 (paneer and cheese, 5%), 0402 (milk powder, 5%), and 2202 (flavoured milk, 12%). Mis-classifying HSN codes leads to wrong tax, GST return mismatches, and penalties during audit.
In a well-run invoice-billing system, HSN code is locked to the SKU master so every invoice automatically carries the correct classification, no human lookup required.
Real-world example
Amul Paneer 200 g carries HSN code 0406 with 5% GST; Amul Flavoured Milk 200 ml carries 2202 with 12% GST.
Where it applies
Applicable industries
This term is relevant across the following SpireStock-supported industries.
How SpireStock handles it
Related SpireStock features
The concepts described above are implemented end-to-end in these product modules.
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