HSN Code and GST Rate for Vegetables, Food & Grocery Items (2025 Guide)

HSN Code (Harmonized System of Nomenclature) is a globally standardized system used to classify goods for taxation and trade. Under India’s GST system, every product from onion, potato, and tomato to besan, masala, or pickles is assigned a unique HSN Code.

It ensures uniform GST rate calculation and helps avoid confusion during billing and filing.
For example, potato HSN code (0701) and onion HSN code (0703) identify fresh vegetables that attract 0% GST.

Purpose of HSN Code in Trade and GST System

The main purpose of the HSN Code is to simplify global trade and make taxation uniform. It is recognized by over 200 countries and helps exporters, importers, and local traders apply correct GST rate with HSN code.

In India, HSN is crucial for agriculture product HSN code, grocery items HSN code, and food items HSN code classification.

Structure of HSN Code in India

Example: HSN 0701 = Potatoes (Fresh or Chilled)
HSN 0713 = Pulses/Chana/Matar
HSN 0712 = Dried Vegetables

HSN Section-Wise and Chapter-Wise Code List (Overview)

HSN Code Under GST

The Government of India mandates HSN Code in invoices under GST. Businesses must use HSN code under GST depending on their turnover.

If you deal in frozen vegetables (0710 HSN code GST rate 5%) or dried products (0712 HSN code GST rate 0%), you must mention it clearly on the invoice.

HSN Code as per Turnover Limit in GST Invoice

Difference Between HSN Code and SAC Code (Services Code)

• HSN Code → For goods like onion, tomato, besan, pickles,
• SAC Code → For services like food delivery or catering

Example:
Onion HSN Code 0703, Catering SAC Code 9963
Keywords: difference between HSN and SAC code in GST

How to Find Correct HSN Code for Your Product

You can find your product’s HSN code with GST rate easily by:

1. Using GST Portal: Official hsn finder tool on gst.gov.in
2. Using HSN Finder Tool: Quick search by product name like onion powder HSN code, besan HSN code, matar HSN code, garlic HSN code
3. Using Chapter Lookup: For fruits and vegetables HSN code, check Chapter 7; for food and grocery items HSN code, check Chapter 20–21.

Common Mistakes While Choosing HSN Code

• Selecting wrong code (e.g., using 0713 HSN code instead of 0714)
• Ignoring product updates or GST changes
• Missing HSN code in invoice for grocery or food business

HSN Code Importance in Food & Manufacturing Businesses

Food and FMCG businesses rely on accurate food items HSN code for billing and export.
Examples:

• Potato Chips HSN Code – 2005 | GST 12%
• Pickle HSN Code and GST Rate – 2001 | GST 12%
• Masala HSN Code and GST Rate – 0904 | GST 5%
• Besan HSN Code – 1102 | GST 5%

HSN Code and GST Rate Relationship Explained

Penalties for Using Wrong HSN Code

Using incorrect HSN code under GST can result in:

• ₹10,000 fine or 10% of taxable value (whichever higher)
• Delayed refund or GST return issues

HSN Code in Imports and Exports (International Trade Use)

In international trade, HS code of onion (0703), potato HS code (0701), garlic HSN code (0703 20), and onion powder HS code (0712) are used for export-import classification.

Latest Updates in HSN Code 2025

• 0710 HSN Code GST Rate: Frozen vegetables – 5%
• 0712 HSN Code GST Rate: Dried vegetables – 0%
• 0713 HSN Code GST Rate: Pulses – 0%
• 1102 HSN Code GST Rate: Besan – 5%
• 1512 HSN Code GST Rate: Edible oils – 5%

How AI and Automation Are Simplifying HSN Classification

Modern AI HSN Code tools auto-detect product categories (e.g., tomato sauce HSN code and GST rate) and apply correct GST in billing.

Businesses can use automation for HSN classification to avoid human errors.

FAQs

1. What is HSN Code?
The HSN Code (Harmonized System of Nomenclature) is a global system for classifying goods under GST. It helps identify products correctly and apply the right GST rate.

2. Is HSN Code mandatory for all businesses?
Yes. Under GST rules, using HSN code on invoices is mandatory based on annual turnover:

• Up to ₹1.5 crore – optional
• ₹1.5–₹5 crore – 4 digits
• Above ₹5 crore – 6 digits

3. What is the HSN Code and GST rate for potato?
HSN Code: 0701
GST Rate: 0% for fresh potatoes, 5% for frozen or processed (like French fries HSN code 2004).

4. What is the HSN Code and GST rate for onion?
HSN Code: 0703
GST Rate: 0% for fresh onions, 5% for preserved or powdered form (onion powder HSN code 0712).

5. What is the HSN Code and GST rate for besan (gram flour)?
HSN Code: 1102
GST Rate: 5% under the food items HSN code category.

6. What is the HSN Code and GST rate for pickles or achar?
HSN Code: 2001
GST Rate: 12% for all types of pickles and preserved vegetables.

7. What is the HSN Code and GST rate for masala or spices?
HSN Code: 0904
GST Rate: 5% for turmeric, chili, coriander, and other masala products.

8. What is the HSN Code range for grocery items?
HSN Chapters: 7–21
This includes vegetables (Chapter 7), food items (Chapter 20), flour and besan (Chapter 11), oils (Chapter 15), and spices (Chapter 9) covering all grocery HSN codes.