How many HSN digits must you print on a GST invoice? 4 digits up to ₹5 crore turnover, 6 digits above ₹5 crore, 8 digits for imports/exports — with examples, B2C rules and common mistakes.
If your aggregate turnover in the previous financial year was up to ₹5 crore, print at least a 4-digit HSN/SAC code on B2B tax invoices (B2C invoices may optionally carry it). Above ₹5 crore, print at least 6 digits on every tax invoice, B2B and B2C. Imports and exports use the full 8-digit ITC-HS code because customs works at that level.
HSN stands for Harmonized System of Nomenclature, the World Customs Organization's product classification used by more than 200 countries. India adopted it for customs and later for GST, adding two digits for national detail. Services use SAC (Services Accounting Code), which starts with 99. The number of digits you print depends on turnover, the type of supply and whether the transaction crosses a border.
| Aggregate turnover (previous FY) | B2B tax invoice | B2C tax invoice | GSTR-1 HSN summary |
|---|---|---|---|
| Up to ₹5 crore | Minimum 4 digits | Optional | Minimum 4 digits |
| Above ₹5 crore | Minimum 6 digits | Minimum 6 digits | Minimum 6 digits |
| Import / export documents | 8-digit ITC-HS | 8-digit ITC-HS | As per turnover rule |
The rule comes from a CBIC notification issued in 2020 that took effect from 1 April 2021. It replaced the older regime where small businesses below ₹1.5 crore did not need HSN at all. Today every regular GST taxpayer must think about classification.
Each pair of digits narrows the classification. Take 8471 30 10 as an illustration: 84 is the chapter (machinery and mechanical appliances), 8471 is the heading (automatic data-processing machines, i.e. computers), 847130 is the sub-heading (portable machines such as laptops), and the last two digits add India-specific detail used in the customs tariff.
| Level | Digits | Example | Meaning |
|---|---|---|---|
| Chapter | 2 | 84 | Machinery and mechanical appliances |
| Heading | 4 | 8471 | Computers and units |
| Sub-heading | 6 | 847130 | Portable computers (laptops) |
| Tariff item | 8 | 84713010 | National-level detail |
Open any code on taxpex.com/hsn-sac (for example /hsn-sac/8471) to see the chapter, heading, description and GST rate on one page.
Aggregate turnover is calculated on an all-India PAN basis. It includes taxable, exempt, export and inter-state supplies of all GSTINs under the same PAN, but excludes the GST itself and inward supplies taxed under reverse charge. A business with three state registrations and combined turnover of ₹6 crore must use 6 digits on every GSTIN, even if one branch alone sells only ₹50 lakh.
The GST rate is linked to the classification, not to the digit count. Two products in the same 4-digit heading can carry different rates at the 6 or 8-digit level. When rates differ, classify to the deeper level even if only 4 digits are mandatory for you.
Accounting software such as TAS lets you store the HSN and rate once in the item master, so each invoice, credit note and GSTR-1 summary uses the same code automatically. That single change removes most HSN mismatches.
Senior contributor at Taxpex Consultancy. Reviewed by a practising Chartered Accountant. Published on 16 October 2026 · Updated on 16 October 2026.
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