How to Find HSN Code for Your Products?: Step-by-Step Guide (2025)

If you run a business in India — whether you’re a manufacturer, trader, or online seller — understanding the HSN code is crucial for smooth GST filing and compliance.

The Harmonized System of Nomenclature (HSN) helps classify every product for taxation and international trade. Making a mistake can result in improper tax rates, fines, or customs issues.

In this article, you’ll learn how to find your correct HSN code, step-by-step — using free tools, examples, and proven SEO-friendly methods trusted by tax experts and e-commerce sellers.

What is an HSN Code?

HSN (Harmonised System of Nomenclature) is a globally accepted system created by the World Customs Organization (WCO) to classify commodities systematically.

HSN codes are used in India by the GST Council and the Central Board of Indirect Taxes and Customs (CBIC) to identify goods and calculate appropriate GST rates.

Why You Need the Correct HSN Code?

Selecting the right HSN code ensures:

• Accurate GST rate calculation
• Correct invoicing under GST rules
• Smooth customs clearance during import/export
• Simplified reporting in GSTR-1 and GSTR-3B returns
• Better financial record accuracy

Using the wrong HSN code can result in:

• Penalties under Section 125 of the CGST Act
• Mismatched invoices or rejected input tax credit (ITC)
• Increased scrutiny from GST or customs authorities

How to Find HSN Code for Your Commodity?

1. Identify Your Product Category Clearly

Before you search, define:

• Material (e.g., cotton, plastic, metal)
• Nature (raw material, finished product, spare part)
• Purpose (domestic, industrial, export)
• Composition or manufacturing method

Example: “Cotton T-shirt” falls under apparel → textile → cotton garments.

2. Use Trusted HSN Code Lookup Tools

Here are reliable sources to find HSN codes online:

• GST Portal (gst.gov.in) → official listings
• CBIC HSN Finder  → verified classification tables
• ClearTax HSN Lookup Tool
• IndiaFilings HSN Database
• Drip Capital Trade Portal

3. Understand the HSN Chapter Your Product Belongs To

HSN codes are organized into 99 chapters and 21 sections.

For example:

• Chapter 52: Cotton
• Chapter 62: Apparel and clothing
• Chapter 84: Machinery and mechanical appliances

Knowing your chapter helps you narrow your product category fast.

4. Match Your Product Description

After locating the relevant chapter:

• Read sub-headings carefully.
• Match material + function + use.
• Avoid using only the first two digits — always choose the full 6 or 8-digit code.

5. Verify GST Rate Linked to HSN Code

After identifying your code, check GST rate on:

• CBIC Rate Notification List
• GST Portal

This ensures the rate applied matches the latest update.

Read More: How to add HSN code on GST portal.

6. Keep a Centralized HSN Master Sheet

Maintain an Excel or ERP sheet with columns:

This improves audit readiness and helps your team use consistent codes across invoices.

Common Mistakes to Avoid

• Using incomplete codes (only 4 or 6 digits when 8 are required)
• Copying competitors’ HSN codes blindly
• Forgetting to update after CBIC notifications
• Using the wrong chapter due to a product misunderstanding
• Missing HSN codes on invoices when mandatory (as per turnover limit)

Conclusion

Finding the right HSN Code is not just about compliance — it’s about accuracy, efficiency, and credibility.

By understanding your product, verifying codes with official tools, and maintaining consistency in invoicing and GST returns, your business stays compliant and penalty-free.

Remember: A single wrong code can cause financial and legal complications, while the right one keeps your business audit-ready and trusted by both clients and regulators.