Glossary
HSN code
Definition
The Harmonised System of Nomenclature code that classifies a product for tax purposes and determines its GST rate.
The HSN code has to appear on the invoice, at a digit length that depends on turnover. Getting it wrong means charging the wrong rate, which is expensive to unwind once it has applied to a year of orders.
Set it once per product at catalogue creation rather than per invoice, so the same product cannot be classified two ways.