What Is the HSN Code & GST Rate: Your Complete 2025 Guide

If you're doing business in India—even as a small-scale supplier—there's no more room for guessing. Understanding what is the HSN code & GST rate is now as critical as knowing your profit margins.

From cement and construction to freight and electronics, every industry has its code, its rules, and—yes—its traps. And in 2025, the lines between “compliant” and “penalized” are razor-thin.

This is your raw, real, and updated guide to navigating HSN codes and GST rates—by product category. No fluff. No fillers. Just the facts and insights that matter.

What Is an HSN Code and Why It Matters for GST

Let’s not overcomplicate it.

Definition and Purpose of HSN Codes

HSN stands for Harmonized System of Nomenclature. Developed by the World Customs Organization (WCO), it’s a six-digit code system used globally for classifying goods.

India adapted it, expanded it to 8 digits for some cases, and married it to GST.

In simple words? It’s your product’s passport for taxation.
Without the right code, your invoice is like a flight ticket with the wrong name—it might get rejected, delayed, or flagged.

Link Between HSN Codes and GST Compliance

This part’s serious.
GST rates are directly tied to HSN codes.

Choose the wrong code, and two things can happen:

1. You underpay tax → leading to fines and backdated interest.

2. You overpay tax → and lose working capital that could've fueled your business.
   
   

The right HSN code does more than just tick a box. It:

• Ensures accurate GST rates

• Unlocks Input Tax Credit (ITC)

• Keeps your audits clean

• Speeds up customs clearance for exporters/importers

This isn’t accounting. This is strategy.

How to Look Up HSN Codes and GST Rates in 2025

We’re in 2025. Manual lists are obsolete.

Tools and Government Resources

Here’s where you should be looking:

• CBIC HSN Search Tool: Reliable and accurate.

• GSTN Portal: The official one-stop source.

• GST Rate Finder App by GST Council: Mobile-friendly.

• Industry Boards: Especially in construction, pharma, textiles—they often publish simplified guides.
  
  

Common Mistakes to Avoid

Let’s not fall into traps others already have:

• Using outdated pre-2022 codes. Some were revised after the last Union Budget.

• Confusing SAC with HSN. Services use SAC, not HSN. Big compliance issue.

• Using 2-digit instead of 4/6/8-digit variants. Many filings get rejected over this.

• Ignoring recent exemptions. Especially in textiles and freight.

HSN Code & GST Rate List by Product Category [2025 Edition]

Here’s the meat of the matter—sorted by industry, stripped of jargon.

Cement Products

Keyword: cement HSN code and GST rate in India 2025

Cement hasn’t changed much in rate but is a compliance hotbed.

Common Codes:

• Ordinary Portland Cement → HSN: 252329

• White Cement → HSN: 252321
  
  

GST Rate: 28% flat

Here’s the kicker—Cement carries one of the highest GST slabs.
Contractors often misclassify it under general construction to save tax. That’s risky and often flagged.

Freight & Transport Services

Keyword: what is the HSN code for freight charges with GST

Freight (Goods Movement):

• HSN: 996511

• GST: 5% (No ITC) OR 12% (With ITC)
  
  

What matters?
If you opt for 5%, you lose ITC. If you claim ITC, go for 12%.

Also note—freight for agricultural produce is exempt, but many forget to declare that properly.

Misclassification between “freight” and “transport” is a leading reason for notices in logistics audits.

Transportation Services (Passenger & Goods)

Keyword: HSN code for transportation services under GST

Goods Transport:

• HSN: 996511

• GST: 5% (typically no ITC)

Passenger Transport:

• Non-AC Buses → HSN: 996411

• GST: 5%

But here’s the catch—
If you lease buses with operators or include AC services, GST jumps to 12–18%.

Labour & Service Charges

Keyword: current HSN code for labour charges in construction

Labour in Construction:

• HSN: 995432

• Usually billed under “Works Contract”
  
  

GST Rate: 18%

Many small contractors bill everything under one lump sum—huge mistake. If you don’t itemize materials and labour, the whole invoice can attract 28% GST.

Split it. Clarify it. Save tax. Avoid audits.

Consumer Electronics

Keyword: HSN code for air conditioners and applicable GST

Air Conditioners:

• HSN: 841510

• GST Rate: 28%
  
  

Batteries:

• Lithium-ion → HSN: 850760

• Lead-acid → HSN: 850710

• GST: 18%
  
  

If you’re a startup importing power banks or assembling devices—good news:
ITC is fully available on both types when used for business.
Most eCommerce resellers fail to claim ITC correctly due to poor classification.

Textiles and Apparel

Keyword: GST rate for t-shirt HSN code under apparel category

T-Shirts → HSN: 610910
Shirts → HSN: 620520

GST Rate:

• Below ₹1000/item: 5%

• ₹1000 and above: 12%
  
  

Apparel resellers often fudge values to stay under ₹1000. This is being monitored.
Government introduced AI-enabled invoice analytics in late 2024 to flag repeated patterns in “just-under” pricing.

Paints & Construction Materials

Keyword: paint HSN code with GST rate for contractors

Decorative Paints → HSN: 320910
Industrial Coatings → HSN: 320820
GST Rate: 18%

Contractors: Claim ITC under works contract or lose margin.

Many builders mistakenly bundle paint services under general construction labor. This creates disputes in audits and can cause ITC denial.

Engineering & Mechanical Components

Keyword: bearing HSN code list for engineering products

Bearings:

• Ball Bearings → HSN: 848210

• Roller Bearings → HSN: 848220
  GST Rate: 18%
  
  

In 2025, there's increased scrutiny on spare parts imports—make sure customs declarations align with your invoice codes.

Service Code 9954 Explained

Keyword: HSN code for 9954 category services explained

9954 Covers:

• Civil engineering

• Real estate construction

• Building restoration

• Repair works

• Project management services
  
  

GST Rate: 18%

This is the go-to code for developers and EPC contractors.
Make sure you don’t list 9954 under goods accidentally—it leads to rejection of ITC claims during assessments.

Final Thoughts & Pro Tips

Ensure Accuracy in GST Filing

We’ve seen businesses lose lakhs in GST credits—not because they were cheating, but because they didn’t update their HSN codes post-budget.
Train your staff. Or better yet, outsource to GST experts who track changes weekly.

Wrong codes = blocked ITC = dead cash.

Keep Track of Annual Changes in Codes and Rates

Post-2023, GST rate changes have picked up pace.
Each budget since has introduced industry-specific exemptions and revisions.
2024 introduced QRMP updates and stricter reconciliation norms.

By mid-2025, it’s expected that e-invoicing will be mandatory for all B2B transactions, including small businesses. Don’t get caught off guard.

Bookmark:

• www.gst.gov.in
  
  

• cbic-gst.gov.in
  
  
  

And Here’s Where Exporters Worlds Steps In

Exporters Worlds isn’t just another consultancy.

We’re the compliance backbone for Indian exporters—especially those dealing in cement, steel, consumer goods, textiles, vegetable powder, and industrial products.
Whether it’s figuring out the correct HSN code for a new product, ensuring GST alignment for your exports, or navigating customs documentation—we handle the complexity so you can handle growth.

When others guess, we verify.
When codes change, we know before they hit the press.
When clients panic before audit season, our clients sleep easy.

Ready to go global without stumbling over compliance?

Visit www.exportersworlds.com and experience GST mastery—category by category.