HSN code is mandatory for businesses with an annual turnover of Rs. 1.5 crore or more. For turnovers ranging between Rs. 1.5 crore and Rs. 5 crore a 2-digit HSN code is required, for more than Rs. 5 crore a 4-digit HSN code is required, and for import/export an 8-digit HSN code is required.
Under GST, the HSN codes are meant for most of the business entities. They need to mention two-, four-, or eight-digit HSN codes for their products, by their turnover for the previous year and the nature of the transaction.
Less than Rs 1.5 crores – (No HSN code required)
Between Rs 1.5 crores and Rs 5 crores – (Two-digit HSN codes)
Above Rs 5 crores – (Four-digit HSN codes)
HSN code is mandatory for businesses with an annual turnover of Rs. 1.5 crore or more. For turnovers ranging between Rs. 1.5 crore and Rs. 5 crore a 2-digit HSN code is required, for more than Rs. 5 crore a 4-digit HSN code is required, and for import/export an 8-digit HSN code is required.
Under GST, the HSN codes are meant for most of the business entities. They need to mention two-, four-, or eight-digit HSN codes for their products, by their turnover for the previous year and the nature of the transaction.
Less than Rs 1.5 crores – (No HSN code required)
Between Rs 1.5 crores and Rs 5 crores – (Two-digit HSN codes)
Above Rs 5 crores – (Four-digit HSN codes)