# HSN code

**URL:** <https://community.greythr.com/t/hsn-code/2332>\
**Category:** Ask the Community\
**Tags:** gst\
**Created:** [April 14, 2021, 6:25am UTC](https://community.greythr.com/t/hsn-code/2332 "2021-04-14T06:25:26Z")\
**Posts on this page:** 2\
**Page:** 1

<div class="post-metadata">

**Author:** ![MadhuPR](https://avatars.discourse-cdn.com/v4/letter/m/43a26b/32.png) [@MadhuPR](https://community.greythr.com/u/MadhuPR)\
**Post date:** [April 14, 2021, 6:25am UTC](https://community.greythr.com/t/hsn-code/2332/1 "2021-04-14T06:25:26Z")

</div>

Hi,

In simple understanding, what is HSN code? what is its importance ?

Any info would be useful. Thanks.

---

<div class="post-metadata">

**Author:** ![vgulvady](https://avatars.discourse-cdn.com/v4/letter/v/e47c2d/32.png) [@vgulvady](https://community.greythr.com/u/vgulvady)\
**Post date:** [April 14, 2021, 7:40am UTC](https://community.greythr.com/t/hsn-code/2332/2 "2021-04-14T07:40:01Z")

</div>

Hi,  
HSN means ‘Harmonized System of Nomenclature’ which is a universal code given to any product manufactured by any country. For example: the HSN code for a writing pen would be ‘HJ4567’ which is recognised all over the world. This avoids confusions of various nomenclatures (or names) given to goods by different people / manufacturers. It is now mandatory for all manufacturers across the world to mention HSN codes on their products even for internal sales or export. Similarly, for services, it is called SAC or " Services Accounting Code" and any services like consultancy or payroll services need to mention this code on their invoices or DC. Trust this helps.  
Regards.