Quick Answer
An HSN code is a standardised number that classifies each product for GST. In Indian ecommerce, you store the HSN on every product, print it on GST invoices, and pair it with the correct tax rate and place-of-supply so CGST/SGST or IGST is charged correctly on each order.
What is an HSN code?
HSN stands for Harmonised System of Nomenclature, a global product-classification system that GST in India uses to identify what you are selling and at what rate it is taxed. Every product you list, from a cotton kurta to a jar of pickle, maps to an HSN code that determines whether it attracts 0%, 5%, 12%, 18% or 28% GST.
For an online seller, the HSN code is not just paperwork. It is the field that ties your catalogue to your tax return, appears on every GST invoice you issue, and lets your accountant reconcile sales against GSTR-1 without guessing. Getting it right at the product level means every downstream order and invoice inherits the correct classification automatically.
How many digits do you need?
The number of HSN digits required depends on your turnover. The general framing below reflects common GST practice at the time of writing; always check the current CBIC notification and confirm with your CA for your specific case.
| Annual turnover | HSN digits (typical) | Applies to |
|---|---|---|
| Up to Rs 5 crore | 4 digits | B2B invoices (B2C often optional) |
| Above Rs 5 crore | 6 digits | All tax invoices |
| Exports / imports | 8 digits | Shipping bills and customs |
Most tier-2 and tier-3 D2C brands sit comfortably in the 4-to-6 digit range. If you scale past Rs 5 crore or begin exporting, you simply extend the codes you already stored rather than re-classifying your whole catalogue.
Where HSN codes actually live
There are three places an HSN code needs to show up, and they should all agree:
- On the product — a compliance field on each catalogue item, so it is captured once and reused.
- On the GST invoice — printed line by line with the taxable value and GST split.
- In your GSTR-1 filing — the HSN summary your portal or CA compiles from those invoices.
On HOD Media, HSN codes are a first-class product field. You set the code (and can charge GST via a toggle), and the store generates GST-style invoices that carry the HSN, taxable value and tax breakup per line item. Bulk invoices let you download many at once for a filing period, and every manual or walk-in order gets the same invoice and 4x6 label treatment as an online order.
Place-of-supply: CGST/SGST vs IGST
HSN decides the rate; place-of-supply decides how that rate is split. The rule is simple in principle: compare the seller's registered state with the buyer's delivery state (usually resolved from the shipping pin-code).
| Scenario | Buyer location | Tax charged |
|---|---|---|
| Intra-state | Same state as seller | CGST + SGST (split 50/50) |
| Inter-state | Different state | IGST (single combined rate) |
| Union Territory | UT without legislature | CGST + UTGST |
So a Maharashtra seller shipping within Maharashtra charges CGST+SGST, but the same order to Tamil Nadu becomes IGST at the same overall percentage. Your invoice must reflect this split correctly, whether the customer paid by UPI, card via Razorpay or Cashfree, or chose COD.
Why this matters for RTO, COD and refunds
Compliance fields are not only about filing. When a COD parcel becomes an RTO, or a customer requests a return, the original GST invoice is your source of truth for the taxable value and tax already accounted for. Clean HSN and place-of-supply data means credit notes and reconciliations line up instead of turning into month-end firefighting.
Building it into your store without a plugin stack
Many Indian sellers bolt GST onto their storefront with third-party apps, then juggle mismatched invoice formats. With hodmedia.in, HSN codes, the charge-GST toggle, place-of-supply handling and GST-style invoices are built in, alongside multi-courier shipping, a branded tracking page, and your own payment keys with no per-sale commission. You connect Razorpay or Cashfree (both live), keep the money settling directly to you, and get GST-style invoices out of the same system that runs your catalogue and orders.
Competitors such as Shopify, Dukaan, Bikayi and Instamojo each handle GST differently — some via apps, some natively — so check their current plans at the time of writing. The India-native advantage here is that the compliance fields, the invoice, and the storefront are one product, priced in rupees with a free 3-month trial and no card required.
A quick setup checklist
- Assign the correct HSN code to every product (confirm rate with your CA).
- Enable the charge-GST toggle so tax is computed at checkout.
- Verify your registered state so place-of-supply resolves CGST/SGST vs IGST correctly.
- Print or bulk-export GST invoices for each filing period.
- Reconcile the HSN summary against your GSTR-1 before filing.
Get the product-level data right once, and every order, invoice and return stays compliant on autopilot.
Is an HSN code mandatory for a small online store in India?
If you are GST-registered, HSN codes are required on your tax invoices, with the number of digits scaling by turnover. Very small B2C sellers may have lighter requirements, but capturing HSN from day one keeps your GSTR-1 clean as you grow. Always confirm your exact obligation with a CA, since rules change via CBIC notifications.
Where do I add HSN codes on HOD Media?
HSN is a compliance field on each product in your HOD Media catalogue. Set it once per product, enable the charge-GST toggle, and the store prints GST-style invoices carrying the HSN, taxable value and tax split per line. You can also generate bulk invoices for a filing period and issue them on manual or walk-in orders.
How does place-of-supply decide CGST/SGST versus IGST?
Place-of-supply compares your registered state with the buyer's delivery state, usually resolved from the shipping pin-code. If both are in the same state, you charge CGST plus SGST; if different states, you charge IGST at the same overall rate. Union Territories use CGST plus UTGST. The HSN sets the rate; place-of-supply only splits it.
Does the GST invoice change if the customer pays COD instead of UPI?
No. The GST invoice reflects the HSN, taxable value, place-of-supply and tax rate regardless of payment method, so COD, UPI, Razorpay or Cashfree all produce the same document. What COD adds is RTO risk, which is why an accurate original invoice matters for credit notes and reconciliation when a parcel returns.
How many HSN digits should I use?
As a general rule at the time of writing, sellers up to Rs 5 crore turnover use 4-digit HSN, those above use 6-digit, and exports use 8-digit codes. Most tier-2 and tier-3 D2C brands are in the 4-to-6 digit band. Store the fuller code where you can, and verify the current threshold with your CA before filing.