Add HSN Code On GST Portal: Importance & Procedure

Introduction

If you’re running a business in India under GST, adding the correct HSN code to your products or services isn’t just a formality—it’s essential for smooth compliance, accurate tax filings, and avoiding costly penalties.

But here’s the catch: Many taxpayers are unsure when and how to add HSN codes on the GST portal, especially after new regulatory changes introduced by the GST Council.

In this updated 2025 guide, we’ll walk you through everything you need to know—from understanding what HSN codes are and who needs them, to a detailed step-by-step process to add them on the GST Portal.

What is an HSN Code?

HSN stands for Harmonized System of Nomenclature, a globally recognized 6-digit code system developed by the World Customs Organization (WCO). It’s used for the classification of over 5,000 products in a standardized way across more than 200 countries.

In India, the HSN code system was adopted under GST to streamline product categorization for taxation, documentation, and international trade.

Why is Adding HSN Code on GST Portal Important?

Here’s why correctly adding your HSN code on the GST portal is a must:

• Simplifies GST return filing: Avoid manually entering long product descriptions.
• Ensures accurate tax rates: Different products attract different GST slabs.
• Promotes compliance: Misclassification can lead to penalties or scrutiny.
• Enables international standardization: Especially important for exporters and importers.

Example:

A cotton shirt and a wool sweater fall under different HSN codes. Using a generic description can lead to errors in taxation or classification.

Also Read: GST Registration Process in India

Who Needs to Add HSN Code on GST Portal in 2025?

As per the latest GST Council notifications:

In addition to businesses:

• Non-resident taxable persons
• Casual taxable persons
• Entities under Reverse Charge Mechanism (RCM)

…must also add relevant HSN codes while filing returns.

How to Add HSN Code on GST Portal?

Follow the process below to search and add HSN codes directly on the official GST portal.

Step 1: Log into the GST Portal

• Visit https://www.gst.gov.in
• Enter your username and password to log in

Step 2: Navigate to ‘Search HSN Code’

On the dashboard, go to Services → User Services → Search HSN Code

Step 3: Search for Your Product

You can search by either HSN Code or Product Description

If you’re unsure of the HSN, start with the product name. For instance, typing “mobile phone” will show a list of relevant HSNs.

Step 4: Verify and Select the Right HSN Code

Review the list and choose the correct classification based on your product description and GST slab.

Step 5: Update Your Profile (If Not Already Added)

• To add or update HSN after registration:
• Go to Dashboard → My Profile → Registration
• Click Edit → Goods and Services
• Under each product or service line, input the correct HSN/SAC
• Click Save and Continue → Submit with DSC or EVC

Can You Add HSN Code After GST Registration?

Yes! You can update the HSN code even after completing GST registration. Since HSN codes fall under non-core fields, changes do not require approval from GST authorities.

Here’s how to modify it:

1. Login to the GST Portal
2. Navigate to My Profile → Amend Registration (Non-Core Fields)
3. Update your goods or services list with the correct HSN or SAC
4. Save and submit

This ensures that your upcoming invoices and returns reflect the accurate classification.

Common Mistakes to Avoid While Adding HSN Code

• Using old 2-digit codes (discontinued)
• Copying codes from unverified third-party websites
• Selecting unrelated HSN codes to match lower tax rates
• Failing to update HSN codes after changing business products

Quick Reference Table: Examples of HSN Codes

Services Available on the GST Portal (Related to HSN)

While the GST Portal offers multiple functionalities, the ones relevant to HSN include:

• Search HSN Code: For verifying classification
• Amend Registration: For adding or modifying HSN codes
• Download GSTR Templates: To include HSN in invoice formats
• Returns Dashboard: To file returns with HSN details

For full access, ensure your Digital Signature Certificate (DSC) or eVerification Code (EVC) is active.

How HSN Code Helps in GST Return Filing?

When filing GSTR-1 or GSTR-3B:

• Your B2B and B2C outward supplies must reflect HSN-wise summary
• Auto-populated fields will show taxable value, HSN, and tax breakup
• Using the correct HSN simplifies GST reconciliation and e-invoice generation

Penalty for Wrong or Missing HSN Code

As per GST rules:

• A penalty of ₹25,000 (CGST + SGST) can be levied for incorrect classification
• Returns filed with wrong HSN may get flagged during assessments or audits
• Input tax credit claims may get delayed or denied if mismatches occur

Conclusion

Understanding and adding the correct HSN code on the GST portal is critical for your business’s compliance and efficiency. This guide has covered everything you need to know—from eligibility rules and classification examples to a step-by-step walkthrough on updating your profile.

With the latest 2025 updates in mind, businesses must stay vigilant and keep their GST profile aligned with their actual product offerings.

If you’re still unsure about your product’s HSN code or need help with your GST filings, reach out to OnDemand International for hassle-free support.