HSN Code List 2026: GST Rates for Every Common Indian Shop Product

An HSN code is the internationally recognised product classification number that determines the GST rate on an item. India adopted HSN codes under GST in July 2017. Every GST invoice must carry the correct code for the product being sold.

HSN codes classify goods, while SAC (Services Accounting Code) classifies services. A trader selling products uses HSN; a service provider uses SAC. Both determine the applicable GST rate and both are required on invoices where relevant.

Yes. HSN codes are uniform nationwide because they flow from a single central classification. The GST rate attached to a code is also uniform across states — what changes between states is only whether the tax is charged as CGST plus SGST or as IGST.

Exempt and nil-rated goods still have HSN codes, and you should show them on the invoice even though the rate is 0%. Correct classification of exempt items also matters for your returns and for any input tax credit reversal.

For businesses with turnover up to ₹5 crore, a 4-digit HSN is sufficient on B2B invoices. Above ₹5 crore, 6-digit HSN is mandatory on all invoices. This is set by CBIC Notification 78/2020 dated 15 October 2020.

An invoice with fewer digits than your turnover requires is treated as defective. For e-invoicing businesses, an invalid or incomplete HSN can cause the IRN to be rejected, which makes the invoice legally invalid until corrected.

Yes. Since 2023, the portal validates HSN codes at e-invoice generation for businesses above the e-invoicing threshold. A code that does not match the registered product category is rejected in real time.

After GST 2.0, effective 22 September 2025, India has four GST slabs: 0%, 5%, 18%, and 40%. The earlier 12% and 28% slabs were removed, with most of their items moving to 5% and 18% respectively.

Soap, shampoo, toothpaste, packaged snacks, many medicines and medical devices, ACs, large TVs, and small cars became cheaper as they moved to lower slabs. Individual health and life insurance and 33 lifesaving drugs became nil-rated.

Aerated and sugary drinks, tobacco products, luxury cars, motorcycles above 350cc, and casino or online-gaming services now attract 40% GST. These are the sin and luxury categories under GST 2.0.

Gold and precious-metal jewellery attracts a special 3% GST under HSN Chapter 71, with an additional 5% on making charges. This rate was left unchanged by GST 2.0.

Accountune is the best-value option for most Indian small shops that want HSN codes applied automatically. It ships a 10,000+ HSN database, suggests the code when you add a product, and then applies the correct code and rate on every invoice — starting at ₹799 per year with a 4-day free trial. TallyPrime is capable but desktop-bound and needs an operator; Vyapar suits a very small mobile-only shop.

Search the product by name in the free Accountune HSN Code Finder or on the official portal at gst.gov.in, rather than copying a code from a supplier bill. Once found, save it against the product in your billing software so it applies automatically thereafter.

Yes. Once each product is mapped to its HSN code, software like Accountune applies the linked GST rate and the correct CGST-SGST or IGST split automatically, based on the customer's state. This removes the manual step where most rate errors begin.

Codes themselves are stable, but the rate attached to them changes whenever the GST Council revises slabs — as it did significantly with GST 2.0 in September 2025. Reviewing your product master after any rate revision keeps your billing correct.