HSN कोड Meaning

HSN stands for Harmonised System of Nomenclature, an internationally standardised system for classifying traded goods maintained by the World Customs Organization. India uses it as the basis for classifying goods under GST.

It depends on annual turnover. Businesses below a specified threshold show fewer digits, typically four, while larger taxpayers must show six, and exports generally require eight. The thresholds have been revised several times, so confirm against the current CBIC notification.

No. FMCG spans several rate slabs across multiple chapters. Staple and unprocessed foods generally attract lower or nil rates, while processed, branded and packaged versions of the same commodity attract higher ones.

Undercharged GST becomes a liability payable from the distributor's own funds, often with interest. Wrong codes also cause input credit mismatches against supplier records and can trigger rejection at e-invoice or e-way bill generation, which stops dispatch.

Per SKU. Category-level defaults are the most common source of systematic classification error, because near-identical products fall into different slabs depending on processing, packaging and branding.