{"id":68873,"date":"2022-08-29T05:58:07","date_gmt":"2022-08-29T05:58:07","guid":{"rendered":"https:\/\/www.tradefinanceglobal.com\/?page_id=68873"},"modified":"2025-01-12T10:54:03","modified_gmt":"2025-01-12T10:54:03","slug":"what-is-an-hsn-code","status":"publish","type":"page","link":"https:\/\/www.tradefinanceglobal.com\/customs\/what-is-an-hsn-code\/","title":{"rendered":"HSN Codes Explained (Harmonized System Nomenclature)"},"content":{"rendered":"\n<div class=\"wp-block-columns container w-auto is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\"><div class=\"block-header-without-image d-flex flex-direction-column justify-content-center\">\n    <h2 class=\"fs-32 fw-700 fs-xs-28 not-for-table-content\" id=\"heading-hsn-codes-explained-harmonized-system-nomenclature\">\n        HSN Codes Explained (Harmonized System Nomenclature)    <\/h2>\n    <div class=\"d-grid grid-col-2 grid-col-xs-1\">\n                            <div class=\"\">\n                <div>Last updated on 12 Jan 2025<\/div>\n                <div>29 Aug 2022 . 3 min read<\/div>\n            <\/div>\n            <\/div>\n    <\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\"><figure class=\"wp-block-post-featured-image\"><img loading=\"lazy\" decoding=\"async\" width=\"869\" height=\"352\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/HSN-Codes-Explained-Harmonized-System-Nomenclature.jpg\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"\" style=\"object-fit:cover;\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/HSN-Codes-Explained-Harmonized-System-Nomenclature.jpg 869w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/HSN-Codes-Explained-Harmonized-System-Nomenclature-300x122.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/HSN-Codes-Explained-Harmonized-System-Nomenclature-768x311.jpg 768w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/HSN-Codes-Explained-Harmonized-System-Nomenclature-320x130.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/HSN-Codes-Explained-Harmonized-System-Nomenclature-370x150.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/HSN-Codes-Explained-Harmonized-System-Nomenclature-414x168.jpg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/HSN-Codes-Explained-Harmonized-System-Nomenclature-600x243.jpg 600w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/HSN-Codes-Explained-Harmonized-System-Nomenclature-372x151.jpg 372w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/HSN-Codes-Explained-Harmonized-System-Nomenclature-450x182.jpg 450w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/HSN-Codes-Explained-Harmonized-System-Nomenclature-380x154.jpg 380w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/HSN-Codes-Explained-Harmonized-System-Nomenclature-285x115.jpg 285w\" sizes=\"auto, (max-width: 869px) 100vw, 869px\" \/><\/figure><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns container w-auto is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\"><div class=\"block-buttons bg-anti-flash-white rounded p-24 h-100 xs-h-auto\" style=\"background-color: #f2f5f7 !important;\">\n  <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-12\">\n    <h4 class=\"not-for-table-content fs-24 fw-700\" id=\"heading-customs-procedures\">Customs Procedures<\/h4>\n  <\/div>\n  <div>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/customs\/\">\n        Introduction to Customs      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/customs\/import-controls\/\">\n        Import Controls      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/customs\/export-controls\/\">\n        Export Controls      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/customs\/customs-clearance-process\/\">\n        Customs Clearance Process      <\/a>\n      <\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<div class=\"wp-block-columns country-quick-link h-100 mb-0 is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\"><div class=\"block-buttons bg-anti-flash-white rounded p-24 h-100 xs-h-auto\" style=\"background-color: #ebf5f4 !important;\">\n  <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-12\">\n    <h4 class=\"not-for-table-content fs-24 fw-700\" id=\"heading-codes-and-classification\">Codes and Classification<\/h4>\n  <\/div>\n  <div>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/customs\/what-is-an-hsn-code\/\">\n        HSN Codes      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/customs\/what-is-an-hs-code\/\">\n        HS Codes      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/customs\/what-are-hts-codes\/\">\n        HTS Codes      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/customs\/naics-north-american-industry-classification-system\/\">\n        NAICS Codes      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/customs\/comparing-naics-to-sic-codes\/\">\n        NAICS vs SIC codes      <\/a>\n      <\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\"><div class=\"block-buttons bg-anti-flash-white rounded p-24 h-100 xs-h-auto\" style=\"background-color: #e5f5ff !important;\">\n  <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-12\">\n    <h4 class=\"not-for-table-content fs-24 fw-700\" id=\"heading-documentation-certification\">Documentation &#038; Certification<\/h4>\n  <\/div>\n  <div>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/customs\/phytosanitary-certificates\/\">\n        Phytosanitary Certificates      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/customs\/certificates-of-origin\/\">\n        Certificates of Origin      <\/a>\n      <\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\"><div class=\"block-buttons bg-anti-flash-white rounded p-24 h-100 xs-h-auto\" style=\"background-color: #E6FAFE !important;\">\n  <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-12\">\n    <h4 class=\"not-for-table-content fs-24 fw-700\" id=\"heading-efficiency-tools\">Efficiency Tools<\/h4>\n  <\/div>\n  <div>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/customs\/single-window-systems\/\">\n        Single Window Systems      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/customs\/customs-brokers\/\">\n        Customs Brokers      <\/a>\n      <\/div>\n<\/div><\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns container w-auto is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\">\n<p><\/p>\n\n\n<div class=\"bg-light-blue d-flex gap-16 h-auto p-16 rounded xs-flex-direction-column\">\n    <div class=\"\">\n    <img decoding=\"async\" style=\"min-width:100px;max-width: 150px\" src=\"https:\/\/secure.gravatar.com\/avatar\/8590deab6809dc3b1f64ba6822e10098?s=160&#038;d=mm&#038;r=g\" class=\"w-100 rounded\">\n  <\/div>\n  <div class=\"col-span-2 col-span-xs-1\">\n    <div class=\"d-flex flex-direction-column gap-16 fs-16 justify-content-between\">\n      <div class=\"fs-16 fw-700\">Carter Hoffman<\/div>\n      <div class=\"fs-14 fw-400 elipsise-2-line\" title=\"Carter Hoffman is a Research Associate at Trade Finance Global focusing on the impact of macroeconomic trends and emerging technologies on international trade.\">\n        Carter Hoffman is a Research Associate at Trade Finance Global focusing on the impact of macroeconomic trends and emerging technologies on international trade.      <\/div>\n      <div>\n        <a class=\"text-black fs-12 small-link-arrow-right\" href=\"https:\/\/www.tradefinanceglobal.com\/posts\/?author=84\">\n          <span>\n            Latest Post          <\/span>\n        <\/a>\n      <\/div>\n    <\/div>\n  <\/div>\n<\/div>\n\n\n<p><\/p>\n\n\n<div class=\"block-cta max-w-100 p-32 h-auto rounded sm-w-60 dark-mode bg-black align wp-block-acf-block-cta\">\n  <h4 id=\"heading-access-trade-receivables-and-supply-chain-finance\" class=\"fs-24 fw-700 elipsise-2-line dark:color-white not-for-table-content\">\n    Access trade, receivables and supply chain finance  <\/h4>\n  <p class=\"block-subtitle dark:color-white\">We assist companies to access trade and receivables finance through our relationships with 270+ banks, funds and alternative finance houses.<\/p>\n  <a href=\"https:\/\/www.tradefinanceglobal.com\/get-trade-finance\/\" class=\"dark:text-black px-16 py-8 rounded bg-black text-white fs-14 fw-700 dark:bg-tale\">\n    <span>Get started<\/span>\n  <\/a>\n<\/div>\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-contents\">Contents<\/h3>\n\n\n<div class=\"block-table-content h-auto bg-white auto\">\n    <ul class=\"table-content\"><\/ul><\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<p><\/p>\n\n\n\n<p class=\"bg-tale rounded p-24 h-auto\" style=\"font-size:16px\">HSN stands for \u2018Harmonized System Nomenclature.\u2019 The WCO (World Customs Organization) developed it as a multipurpose international product nomenclature that first came into effect in 1988 with the vision of facilitating the classification of goods all over the World in a systematic manner.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-do-hsn-work\">How do HSN work?<\/h2>\n\n\n\n<p style=\"font-size:16px\">HSN is a six-digit code that classifies more than 5000 products, arranged in a legal and logical structure. To achieve uniform classification, the HSN is supported by well-defined rules and is accepted worldwide.<\/p>\n\n\n\n<p style=\"font-size:16px\">HSN classification is widely used for taxation purposes by helping to identify the rate of tax applicable to a specific product in a country that is under review. It can also be used in calculations that involve claiming benefits.<\/p>\n\n\n\n<p style=\"font-size:16px\">Yet that\u2019s not all \u2013 it also applies to import and exports. The HSN code aids in determining the quantity of all items imported or traded through a nation.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-importance-of-the-hsn-code\">The Importance of the HSN Code<\/h2>\n\n\n\n<p style=\"font-size:16px\">While the primary purpose of the HSN code is the systematic classification of goods, it can also be used to gather data and solve problems that would otherwise be difficult to obtain. The result is&nbsp;<a href=\"https:\/\/www.tradefinanceglobal.com\/trade-finance\/\">a more efficient international trade system<\/a>.<\/p>\n\n\n\n<p style=\"font-size:16px\">HSN is in use worldwide, with 200+ countries participating. This impressive adoption rate can be chalked up to the benefits of HSN, which include:<\/p>\n\n\n\n<ul style=\"font-size:16px\" class=\"wp-block-list\">\n<li>Collection of international trade statistics<\/li>\n\n\n\n<li>Provision of a rational basis for Customs tariffs<\/li>\n\n\n\n<li>Uniform classification<\/li>\n<\/ul>\n\n\n\n<p style=\"font-size:16px\">Nearly 98% of international trade stock is classified in terms of HSN, further evidence of its reputation as the best form of international classification.<\/p>\n\n\n\n<p style=\"font-size:16px\">HSN numbers exist for each&nbsp;<a href=\"https:\/\/www.tradefinanceglobal.com\/commodity-trading\/ctrm-software\/\">commodity<\/a>&nbsp;in every country, and the number remains the same for almost all goods. In some countries, HSN numbers can vary a little because they are entirely based on the nature of the items classified.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-hsn-in-india-one-example\">HSN in India: One Example<\/h3>\n\n\n\n<p style=\"font-size:16px\">India has been a member of the&nbsp;<a href=\"https:\/\/www.wcoomd.org\/\">WCO<\/a>&nbsp;(World Customs Organization) since 1971. It initially employed six-digit HSN codes to classify merchandise for Customs as well as Central Excise duties. To make the codes more precise, the Customs and Central Excise authorities went on to add two more digits. This resulted in an eight-digit HSN classification.<\/p>\n\n\n\n<p style=\"font-size:16px\">Almost all goods in India are classified using the HSN classification code, which facilitates the use of HSN numbers for calculations of the&nbsp;<a href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/what-is-gst-bill-of-entry\/\">Goods and Service Tax<\/a>&nbsp;(GST). &nbsp;The number is currently being used to categorize goods to compute VAT (Value Added Tax).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-hsn-code-in-gst-invoices-what-to-remember\">HSN code in GST invoices \u2013 what to remember<\/h3>\n\n\n\n<p style=\"font-size:16px\">It\u2019s important to remember that the HSN number must be clearly mentioned on GST Invoices when preparing Tax Invoices for GST.<\/p>\n\n\n\n<p style=\"font-size:16px\">Here\u2019s how the different HSN classifications, from two digits to eight digits, come into play in India:<\/p>\n\n\n\n<ul style=\"font-size:16px\" class=\"wp-block-list\">\n<li>The government gives some form of relief to small taxpayers with annual turnover up to Rs. 1.5 crore in any preceding financial year. After this move, there is no need for small taxpayers to mention HSN codes in their taxable income.<\/li>\n\n\n\n<li>Taxpayers with a turnover between Rs. 1.5 crore up to 5.00 crore must mention only two digits of the HSN code.<\/li>\n\n\n\n<li>Taxpayers with a turnover that exceeds Rs. 5.00 crore must mention five digits of the HSN code.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-image size-large fs-16\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/For-exporters-1536x1024-1-1024x683.jpg\" alt=\"\" class=\"wp-image-106695\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/For-exporters-1536x1024-1-1024x683.jpg 1024w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/For-exporters-1536x1024-1-300x200.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/For-exporters-1536x1024-1-768x512.jpg 768w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/For-exporters-1536x1024-1-285x190.jpg 285w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/For-exporters-1536x1024-1-320x213.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/For-exporters-1536x1024-1-370x247.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/For-exporters-1536x1024-1-414x276.jpg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/For-exporters-1536x1024-1-450x300.jpg 450w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/For-exporters-1536x1024-1-375x250.jpg 375w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/For-exporters-1536x1024-1-243x162.jpg 243w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/For-exporters-1536x1024-1-239x159.jpg 239w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/For-exporters-1536x1024-1-185x123.jpg 185w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/For-exporters-1536x1024-1.jpg 1300w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Aerial photo of the front end of a large fully loaded container ship.<\/figcaption><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-understanding-the-hsn-code\">Understanding the HSN Code<\/h2>\n\n\n\n<p style=\"font-size:16px\">So, what is the HSN code in full form? The HSN code contains:<\/p>\n\n\n\n<ul style=\"font-size:16px\" class=\"wp-block-list\">\n<li>21 sections <\/li>\n\n\n\n<li>99 chapters <\/li>\n\n\n\n<li>1244 headings <\/li>\n\n\n\n<li>5224 subheadings<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<p style=\"font-size:16px\">The structure of HSN code has about 21 groups, and these groups are further classified into 99 chapters. The chapters are then divided into headings that are about 1244 in number. The headings are subsequently divided into 5224 subheadings. In the code itself, this plays out in the following manner:<\/p>\n\n\n\n<ul style=\"font-size:16px\" class=\"wp-block-list\">\n<li>Each Chapter is named as a two-digit HSN number.<\/li>\n\n\n\n<li>Each two-digit HSN number is sub-classified into a four-digit HSN code.<\/li>\n\n\n\n<li>Later, such four-digit HSN codes are further sub-classified into the six-digit HSN code.<\/li>\n<\/ul>\n\n\n\n<p style=\"font-size:16px\"><strong>How can I find my 8 digit HSN code?<\/strong>&nbsp;To sub-classify the six-digit HSN code number in some countries, there must be an additional two-digit HSN code put into place in order to create an eight-digit HSN code.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-example-of-an-hsn-code-schematic\">Example of an HSN code &#8211; schematic<\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"810\" height=\"450\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/HSN-Codes-Naming-System.jpg\" alt=\"\" class=\"wp-image-106700\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/HSN-Codes-Naming-System.jpg 810w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/HSN-Codes-Naming-System-300x167.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/HSN-Codes-Naming-System-768x427.jpg 768w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/HSN-Codes-Naming-System-320x178.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/HSN-Codes-Naming-System-370x206.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/HSN-Codes-Naming-System-414x230.jpg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/HSN-Codes-Naming-System-540x300.jpg 540w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/HSN-Codes-Naming-System-360x200.jpg 360w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/HSN-Codes-Naming-System-450x250.jpg 450w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/HSN-Codes-Naming-System-292x162.jpg 292w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/HSN-Codes-Naming-System-286x159.jpg 286w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/HSN-Codes-Naming-System-221x123.jpg 221w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/HSN-Codes-Naming-System-285x158.jpg 285w\" sizes=\"auto, (max-width: 810px) 100vw, 810px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-importance-of-hsn-under-gst\">The Importance of HSN Under GST<\/h2>\n\n\n\n<p style=\"font-size:16px\">The HSN system doesn\u2019t only help Customs agents \u2013 it also has important implications for GST. &nbsp;It helps in making GST systematic and globally accepted.<\/p>\n\n\n\n<p style=\"font-size:16px\">By using HSN codes, there is no need to upload a detailed description for each good falling under the GST. This allows for the automation of GST returns, saving time and money for the tax authority.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p class=\"bg-anti-flash-white rounded p-24 h-auto\" style=\"font-size:16px\">Get in touch with our Freight Forwarding networking team&nbsp;<a href=\"https:\/\/www.tradefinanceglobal.com\/contact-us\/\">here<\/a>.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-testimonials\">Testimonials<\/h2>\n\n\n<div class=\"block-content align bg-anti-flash-white rounded p-24 h-auto fs-16 wp-block-acf-block-content\"style=\"background-color: ;color: #002F4D;\"\n>\n    <p>HSN Codes were required by Sharma Packaging Foods Company to determine what relief it was eligible for from taxpayers.<\/p>\n<p>\u2013 Joanna, Sharma Packaging Food Company<\/p>\n<\/div>\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column bg-tale rounded p-24 h-auto is-layout-flow wp-block-column-is-layout-flow\">\n<h3 class=\"wp-block-heading\" id=\"h-case-study\"><strong>Case Study<\/strong><\/h3>\n\n\n<div class=\"block-content align bg-white rounded p-24 h-auto wp-block-acf-block-content\"style=\"background-color: #FFFFFF;color: #002F4D;\"\n>\n    <p style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-105880 size-full aligncenter\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/integrated-circuits-and-electronics.jpg\" alt=\"\" width=\"960\" height=\"720\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/integrated-circuits-and-electronics.jpg 960w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/integrated-circuits-and-electronics-300x225.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/integrated-circuits-and-electronics-768x576.jpg 768w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/integrated-circuits-and-electronics-320x240.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/integrated-circuits-and-electronics-370x278.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/integrated-circuits-and-electronics-414x311.jpg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/integrated-circuits-and-electronics-400x300.jpg 400w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/integrated-circuits-and-electronics-267x200.jpg 267w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/integrated-circuits-and-electronics-333x250.jpg 333w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/integrated-circuits-and-electronics-216x162.jpg 216w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/integrated-circuits-and-electronics-212x159.jpg 212w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/integrated-circuits-and-electronics-164x123.jpg 164w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/04\/integrated-circuits-and-electronics-253x190.jpg 253w\" sizes=\"auto, (max-width: 960px) 100vw, 960px\" \/><\/p>\n<p>&nbsp;<\/p>\n<h4 class=\"member-role\" style=\"text-align: left;\">Goods Distributor<\/h4>\n<p>TFG put us in touch with expert HSN experts so that we could\u00a0<a href=\"https:\/\/www.tradefinanceglobal.com\/freight-forwarding\/shipping-management-software\/\" data-wpel-link=\"internal\">ship<\/a>\u00a0our goods across the state and also pay the appropriate taxes to the government.<\/p>\n<\/div><\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<div style=\"height:29px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<section class=\"full-width block-grid_topics dark-mode\" data-block=\"grid_topics\" data-theme=\"dark\">\n  <div class=\"block-topics\">\n    <h1 class=\"container w-auto fs-xs-20 mb-xs-20 not-for-table-content\"><\/h1>\n    <div class=\"control container w-auto clearfix topic-tabs position-relative\">\n              <ul class=\"tabs tabs-horizontal d-inline-block mb-30\">\n                      <li class=\"px-24 py-12 fs-16 fs-xs-14 active\"\n            data-post-type=\"page\"\n            data-source=\"topic\"\n            data-limit=\"14\"\n            data-include=\"\"\n            data-cat=\"8428,11052,851,6135\"\n            data-cat-relationship=\"in\"\n            data-key-category=\"\"\n            data-link=\"\"\n            data-link-title=\"\"\n            default-link=\"\"\n            default-btn-text=\"\">\n              Customs Resources            <\/li>\n                      <li class=\"px-24 py-12 fs-16 fs-xs-14 \"\n            data-post-type=\"post\"\n            data-source=\"topic\"\n            data-limit=\"14\"\n            data-include=\"\"\n            data-cat=\"8428\"\n            data-cat-relationship=\"in\"\n            data-key-category=\"\"\n            data-link=\"\"\n            data-link-title=\"\"\n            default-link=\"\"\n            default-btn-text=\"\">\n              All Customs Topics            <\/li>\n                      <li class=\"px-24 py-12 fs-16 fs-xs-14 \"\n            data-post-type=\"post\"\n            data-source=\"topic\"\n            data-limit=\"14\"\n            data-include=\"\"\n            data-cat=\"8428,11052,851,6135\"\n            data-cat-relationship=\"combined\"\n            data-key-category=\"2827\"\n            data-link=\"\"\n            data-link-title=\"\"\n            default-link=\"\"\n            default-btn-text=\"\">\n              Podcasts            <\/li>\n                      <li class=\"px-24 py-12 fs-16 fs-xs-14 \"\n            data-post-type=\"post\"\n            data-source=\"topic\"\n            data-limit=\"14\"\n            data-include=\"\"\n            data-cat=\"11052,851,6135,8428\"\n            data-cat-relationship=\"combined\"\n            data-key-category=\"3525,10707\"\n            data-link=\"\"\n            data-link-title=\"\"\n            default-link=\"\"\n            default-btn-text=\"\">\n              Videos            <\/li>\n                      <li class=\"px-24 py-12 fs-16 fs-xs-14 \"\n            data-post-type=\"conference\"\n            data-source=\"topic\"\n            data-limit=\"14\"\n            data-include=\"\"\n            data-cat=\"8428,11052,6135,851\"\n            data-cat-relationship=\"combined\"\n            data-key-category=\"2148\"\n            data-link=\"\"\n            data-link-title=\"\"\n            default-link=\"\"\n            default-btn-text=\"\">\n              Conferences            <\/li>\n                  <\/ul>\n            <select class=\"topics-sort d-hidden\">\n        <option value=\"title-asc\">A-Z<\/option>\n        <option value=\"date-desc\" selected>Latest<\/option>\n      <\/select>\n      <div class=\"border-light-blue bg-white fs-16 fw-700 pointer bordered dark:bg-maastricht-blue position-absolute rounded-md sorting-dropdown px-16 py-10\">\n        <span class=\"display-value d-block\">Latest<\/span>\n        <div class=\"border-light-blue bordered options-to-select overflow-hidden rounded-md w-100 d-hidden\">\n          <span class=\"d-block py-10 px-16 pointer single-option\"\n          data-value=\"title-asc\">A-Z<\/span>\n          <span class=\"d-block py-10 px-16 pointer single-option\" data-value=\"date-desc\">Latest<\/span>\n        <\/div>\n      <\/div>\n    <\/div>\n\n    <div class=\"block-wrapper clearfix overflow-hidden max-w-100\">\n    <\/div>\n\n    <div class=\"bottom-buttons d-flex clearfix container w-auto\">\n      <a href=\"\" class=\"custom-link button-standart button-standart-blue\">\n        <span><\/span>\n      <\/a>\n    <\/div>\n  <\/div>\n<\/section>","protected":false},"excerpt":{"rendered":"<p>HSN stands for \u2018Harmonized System Nomenclature.\u2019 The WCO (World Customs Organization) developed it as a multipurpose international product nomenclature that first came into effect in 1988 with the vision of\u2026 <a href=\"https:\/\/www.tradefinanceglobal.com\/customs\/what-is-an-hsn-code\/\" class=\"read-more-link\">read more &rarr;<\/a><\/p>\n","protected":false},"author":84,"featured_media":110626,"parent":68532,"menu_order":3,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"content-type":"","ep_exclude_from_search":false,"footnotes":""},"categories":[8428,851],"class_list":["post-68873","page","type-page","status-publish","has-post-thumbnail","hentry","category-customs","category-freight-forwarding"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.7 (Yoast SEO v24.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is an HSN Code? HSN Codes Explained - TFG Guide [Updated 2025]<\/title>\n<meta name=\"description\" content=\"[Updated 2025] All you need to know about HSN Codes. HSN, which stands for &#039;Harmonized System Nomenclature&#039; was developed by the WCO in 1988. Find out more about this 8 digit code, how it can be found, examples and how HSN works with GST invoices in our TFG HSN Code 2022 hub.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.tradefinanceglobal.com\/customs\/what-is-an-hsn-code\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"HSN Codes Explained (Harmonized System Nomenclature)\" \/>\n<meta property=\"og:description\" content=\"[Updated 2025] All you need to know about HSN Codes. 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HSN Codes Explained - TFG Guide [Updated 2025]","isPartOf":{"@id":"https:\/\/www.tradefinanceglobal.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.tradefinanceglobal.com\/customs\/what-is-an-hsn-code\/#primaryimage"},"image":{"@id":"https:\/\/www.tradefinanceglobal.com\/customs\/what-is-an-hsn-code\/#primaryimage"},"thumbnailUrl":"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/HSN-Codes-Explained-Harmonized-System-Nomenclature.jpg","datePublished":"2022-08-29T05:58:07+00:00","dateModified":"2025-01-12T10:54:03+00:00","description":"[Updated 2025] All you need to know about HSN Codes. HSN, which stands for 'Harmonized System Nomenclature' was developed by the WCO in 1988. 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