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HSN Code for Export Purposes: A Detailed Guide for Indian Exporters


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When it comes to global trade, accuracy in classification is more than just a formality—it's a legal and operational necessity. In India, HSN (Harmonized System of Nomenclature) codes are a critical part of export documentation, helping ensure smooth compliance with GST rules and international customs procedures. Whether you’re a seasoned exporter or just beginning your export journey, understanding the HSN code system is essential.

This blog offers a complete breakdown of HSN codes for export purposes—what they are, how they are structured, where to find them, and why they're vital for your business.

What is an HSN Code?


HSN stands for Harmonized System of Nomenclature, an internationally accepted system for classifying goods in trade. It was developed by the World Customs Organization (WCO) to ensure uniformity in naming and coding products.


The HSN system allows every product to be identified by a standardized numeric code. This code is used globally to classify traded products and is recognized in over 200 countries.



Why is HSN Code Important in Exports?


For Indian exporters, the HSN code plays a key role in both domestic and international documentation. Here's why:


  • ✅ Required under GST for Tax ComplianceHSN codes must be mentioned in GST returns, invoices, and e-way bills.

  • ✅ Used in Customs DocumentationIt helps customs authorities quickly identify the nature of goods, determine duties, and ensure correct valuation.

  • ✅ Prevents Delay in ClearanceIncorrect or missing HSN codes can lead to clearance delays and penalties.

  • ✅ Essential for Shipping Bills and IEC RecordsThe code must be mentioned in export documents like shipping bills, bills of entry, and DGFT records.

Structure of HSN Code

The HSN coding system follows a hierarchical structure:

Code Length

Meaning

Usage in India

2-digit

Chapter (Broad Category)

High-level classification

4-digit

Heading (Sub-category)

More specific identification

6-digit

International Standard Code

Used for exports

8-digit

Indian Specific Code

Used in domestic trade and customs

Example: HSN Code for turmeric powder: 09103000

  • 09: Chapter for Coffee, Tea, Spices

  • 10: Heading for Turmeric

  • 30: Sub-heading

  • 00: Specific Indian classification

How to Find the Correct HSN Code for Exported Goods

You can identify your product’s HSN code using the official list of goods notified under GST and customs law. Here’s how:



Step-by-Step Guide:


  1. Identify the product type (e.g., steel bottle, cotton fabric, turmeric powder).

  2. Refer to the official HSN chapter headings for that product group.

  3. Match the product description with the sub-headings.

  4. Confirm the correct 6-digit or 8-digit code for export use.

Here are a few examples of HSN codes used by exporters:

Product

HSN Code

Turmeric Powder

09103000

Steel Utensils

73239310

Cotton Fabric

52081200

Herbal Shampoo

33051090

Wooden Handicraft

44219990

Handmade Woolen Carpets

57011010

Organic Moringa Powder

12119029

Always use the 6-digit HSN code for export documentation unless Indian customs explicitly ask for the 8-digit version.

Difference Between HSN and SAC

  • HSN (Harmonized System of Nomenclature):Used for goods (physical items).

  • SAC (Services Accounting Code):Used for services (e.g., freight forwarding, export consultancy).

For exporters dealing in services, SAC codes must be used instead of HSN.

Where to Use HSN Code in the Export Process

Ensure that the HSN code is accurately mentioned in the following documents:

  • GST Tax Invoice

  • Shipping Bill

  • E-way Bill

  • Bill of Lading

  • GSTR-1 and GSTR-3B returns

  • Customs Declarations (Export General Manifest)

  • IEC Profile (DGFT)

What Happens If You Use the Wrong HSN Code?

Using the wrong HSN code can lead to serious compliance issues, such as:

  • ❌ Delays in customs clearance

  • ❌ Penalties or fines for misclassification

  • ❌ Denial of Input Tax Credit (ITC)

  • ❌ Errors in GSTR filing

  • ❌ Shipping document rejections

Always double-check your HSN codes with a tax consultant or refer to the latest official notifications.

FAQs on HSN Code for Export

1. Is HSN Code mandatory for all exports?

Yes, it is mandatory under GST and Customs law.

2. Can I use SAC for goods exports?

No. SAC is for services. Use HSN for goods.

3. What is the format for HSN codes in exports?

Exports generally use 6-digit codes as per WCO standards.

4. What if my product fits into multiple categories?

Choose the most accurate match and consult a GST practitioner or customs broker for confirmation.


Conclusion: Key Takeaways

✅ HSN codes are mandatory for all exporters under GST

✅ Always use correct 6-digit classification for international trade

✅ Mention HSN in all legal and shipping documents

✅ Wrong HSN codes can invite penalties or delays

Getting your HSN code right is not just about compliance—it's about professionalism, speed, and credibility in the global market.



 
 
 

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