HSN Codes Explained for Indian Retailers (2026)
What HSN codes are, why they are mandatory on GST invoices, how many digits you need, and how to apply them without memorising anything.
HSN (Harmonised System of Nomenclature) codes classify goods for GST. The right HSN determines the tax rate and is mandatory on invoices above certain turnover. Here is what retailers need to know. This is general information, not tax advice — GST rules, rates and thresholds change and vary by case, so confirm specifics with a qualified professional or the official GST portal.
What an HSN code is
A standardised code that identifies a product category worldwide. In India it drives the GST rate and must appear on compliant invoices.
How many digits you need
The number of HSN digits required on invoices depends on your turnover — smaller businesses report fewer digits, larger ones more. Verify your requirement on the GST portal.
Applying HSN without the headache
You should not have to memorise codes. In MyGroce you set the HSN once per product (or category) and every future bill applies the right code and tax rate automatically.
Frequently asked questions
Are HSN codes mandatory on GST invoices?
Yes, above the applicable turnover, and the number of digits depends on your size. Set HSN once per product in MyGroce and it applies automatically on every bill.
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