What is HSN code finder?
An HSN Code Finder is an online tool that helps businesses and individuals quickly locate the correct HSN code for goods and services. HSN (Harmonised System of Nomenclature) codes are essential for classification under India’s GST system, enabling systematic and accurate tax filings. This tool simplifies the search process by allowing users to enter the product name or category and retrieve the corresponding HSN code along with applicable GST rates.
Using an HSN Code Finder ensures compliance, prevents misclassification, and helps avoid penalties during GST returns. It's especially useful for traders, manufacturers, tax professionals, and e-commerce businesses that deal with a variety of goods. While managing classifications and tax compliance, you can also check your business loan eligibility to ensure financial readiness for operations or expansion.
About HSN code and GST rate
The HSN code system is a globally standardised method created by the World Customs Organisation (WCO) to classify traded products. In India, it is closely integrated with the Goods and Services Tax (GST) system to simplify indirect taxation and promote uniformity in product classification.
GST, or Goods and Services Tax, is a comprehensive, multi-stage, destination-based tax that is levied on every value addition. Introduced in India on July 1, 2017, GST replaced multiple indirect taxes like VAT, service tax, and excise duty. It applies to the supply of goods and services across India, ensuring one nation, one tax.
To streamline taxation under GST, every product or service must be tagged with an HSN code or SAC (Services Accounting Code). These codes help determine the correct tax bracket and ensure consistency across invoices and filings.
Each HSN code is a unique 6- to 8-digit number assigned to a specific product category. For example, the HSN code for textiles will differ from that of electronics or pharmaceuticals. The number of digits used depends on the business turnover:
- 4-digit HSN code: For businesses with turnover up to Rs. 1.5 crore
- 6-digit HSN code: For turnover between Rs. 1.5 crore and Rs. 5 crore
- 8-digit HSN code: Mandatory for businesses with turnover above Rs. 5 crore
Alongside the HSN code, knowing the applicable GST rates is crucial. GST rates are divided into slabs such as 0%, 5%, 12%, 18%, and 28%, depending on the product or service. Accurate classification helps ensure the right tax is charged, reducing the risk of disputes, notices, or fines from tax authorities.
By using an HSN Code Finder, businesses can quickly identify the correct code and tax rate, which facilitates accurate invoicing, smooth GST return filing, and full regulatory compliance. Additionally, if you’re planning for growth, you can also check your pre-approved business loan offer to access funding tailored to your business needs.
