Definizione
HSN (Harmonised System of Nomenclature) codes are a standardised numerical classification for traded products maintained by the World Customs Organisation. More than 200 countries use it, making it one of the most widely adopted classification systems in world trade.
Structure: — 2-digit chapter (e.g. 61 — Articles of apparel, knitted) — 4-digit heading (e.g. 6109 — T-shirts, singlets) — 6-digit subheading (international standard) — 8-digit (EU combined nomenclature, used by customs) — 10-digit (country-specific for very fine classification)
How HSN / HS codes are used: 1. Customs duty — import and export duties are defined by HS code in every tariff schedule. 2. GST / VAT classification — in India, the HSN code determines the GST rate applicable to goods. On invoices above ₹5 lakh aggregate turnover, the 6-digit HSN must appear on each line. 3. Trade statistics — governments and international bodies compile trade data by HS code. 4. Rules of origin — free trade agreements use HS codes to determine whether goods qualify for preferential rates.
SAC codes (Services Accounting Code) are the equivalent for services under India's GST — a separate 6-digit system.