An internationally standardized multi-digit code used to classify clothing products for GST tax compliance in India.
HSN (Harmonized System of Nomenclature) Code is a standardized multi-digit code developed by the World Customs Organization (WCO) to classify goods systematically for taxation and customs purposes. In India, HSN codes are mandatory for recording financial transactions, generating GST tax invoices, and filing GSTR tax returns. Under the Indian GST system, apparel and textiles are classified primarily under HSN Chapter 61 (knitted or crocheted apparel) and HSN Chapter 62 (woven apparel). Specifically, printed cotton t-shirts utilize HSN code 61091000, while cotton hoodies and sweatshirts fall under HSN code 61102000. Recording the correct HSN code on every commercial invoice is vital for D2C brands, as it dictates the tax rate applied to the sale: a 5% GST rate applies if the taxable transaction value is under ₹1,000 per unit, whereas a 12% GST rate is triggered for units priced at ₹1,000 and above.