HSN codes
HSN codes and GST rates for retail shops
Loose rice and a packed bag of atta, a bar of soap and a box of detergent, a steel tumbler and a notebook. Similar shelves, different codes and rates.
In short
Grocery and general stores bill staples such as rice (1006) and sugar (1701) at nil or 5%, and household goods such as detergent (3402) at 18%. SimpleERP keeps each code and rate on the product for counter billing without POS.
Illustration of GST tax invoice INV-2026-27-0213 to Ravi Stores with CGST 9% and SGST 9%, round off, a UPI QR code and the amount in words.
The data
The codes and usual rates
| HSN | Goods | Usual GST rate | Notes |
|---|---|---|---|
| 1006 | Rice | Nil / 5% | Nil loose; 5% pre-packed and labelled |
| 1101 | Wheat flour (atta) | Nil / 5% | Nil loose; 5% pre-packed and labelled |
| 0713 | Dried pulses (dal) | Nil / 5% | Nil loose; 5% pre-packed and labelled |
| 1701 | Sugar | 5% | Cane and beet sugar |
| 1508 | Groundnut oil | 5% | Other edible oils sit under 1507 to 1515 |
| 0902 | Tea | 5% | Black and green tea |
| 0904 | Whole chilli and pepper | 5% | Ground spices can differ; check |
| 2501 | Salt | Nil | Common salt |
| 0405 | Ghee and butter | 5% | Moved from 12% on 22 September 2025 |
| 3401 | Soap bars | 5% | Moved from 18% on 22 September 2025 |
| 3402 | Detergent powder and liquid | 18% | Washing preparations |
| 3306 | Toothpaste | 5% | Moved from 18% on 22 September 2025 |
| 3305 | Hair oil and shampoo | 5% | Moved from 18% on 22 September 2025 |
| 3307 | Agarbatti | 5% | Incense sticks and dhoop |
| 3406 | Candles | 5% | Moved from 12%; check decorative candles |
| 7323 | Steel utensils | 5% | Moved from 12% on 22 September 2025 |
| 3924 | Plastic buckets, mugs and tiffins | Check | Household articles of plastics |
| 4820 | Notebooks | Nil | Exercise books and notebooks |
| 9608 | Pens | 18% | Ball pens and refills |
| 8539 | LED bulbs | Check | LED lamps and fittings had their own rate entry; confirm the current rate |
Sources: CBIC: Customs tariff (HSN chapters), GST Council: rate changes effective 22 September 2025, CBIC: GST rates and notifications. Verified .
Which HSN codes does a retail shop use most?
A grocery and general store spans food staples and household goods. Cereals, pulses and flour come from chapters 7, 10 and 11, sugar from chapter 17, edible oils from chapter 15, and tea and spices from chapter 9. On the household shelf, soaps and detergents sit in chapter 34, toothpaste and hair oil in chapter 33, utensils in chapter 73 and notebooks in chapter 48.
For staples the rate often turns on packing. Loose rice, dal and atta are usually nil-rated, while the same goods pre-packed and labelled usually carry 5%. A shop that sells both keeps two products with two rates.
What changed on 22 September 2025 for retail shops?
Many household goods on a general store's shelves moved down. Food staples that were already at nil or 5% mostly stayed where they were.
- Soap, toothpaste and hair oil moved from 18% to 5%.
- Ghee and butter moved from 12% to 5%.
- Steel utensils and candles moved from 12% to 5%.
- Detergents and pens usually stayed at 18%. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.
HSN on invoices and the GSTR-1 HSN summary in SimpleERP
SimpleERP is billing and accounts for shops that bill at a counter from a laptop or phone, without a POS terminal or barcode scanner. The clerk searches the item by name, types the quantity, and the HSN and rate come from the product.
- Code and rate per product, so loose and packed rice each bill at their own rate.
- UPI QR on the invoice for the customer who pays by phone.
- HSN summary report groups the month's counter bills by code for GSTR-1; a code billed at two rates needs that row split by rate.
- Short codes for small shops: four digits up to ₹5 crore of turnover and six above it, as notified.
Illustration of a profit and loss statement for April to September 2026 with net profit of ₹4,12,800, a GST summary and the lock date.
Inputs and input tax credit for retail shops
A retail shop's credit comes from its distributors' bills. Goods sold nil-rated do not generate output tax, so a shop heavy on loose staples may find the credit on rent and fittings hard to use. Your CA will work out the share.
- Distributor bills are entered with their GSTIN, HSN and tax, ready to tick off against GSTR-2B.
- Rent, electricity and shop fittings carry their own GST.
- Weighted-average cost per item, kept per store.
- The purchase register totals what each distributor billed you, by rate.
Honest limits
Not included yet
- POS terminal mode and barcode scanning
- Batch and expiry tracking
- Cess on any product
FAQ
Questions, answered
What is the HSN code for grocery items?
Grocery items have no single code. Rice is 1006, atta 1101, dal 0713, sugar 1701, tea 0902 and salt 2501. Loose staples are usually nil-rated and pre-packed, labelled staples usually 5%. Confirm each product's code and rate with your CA.
What is the GST rate on rice and atta?
Loose rice and atta are usually nil-rated. When they are pre-packed and labelled, they usually carry 5%. A shop that sells both keeps two products in SimpleERP, one at nil and one at 5%, so each bill line takes the right rate.
Is SimpleERP a POS for a grocery store?
No. SimpleERP has no POS terminal mode, barcode scanning or batch and expiry tracking. It suits shops that bill with a keyboard search at the counter and want stock, GST and accounts in one place. A busy supermarket checkout needs a POS system.
How many HSN digits does a retail shop print?
It depends on turnover, as notified: currently four digits up to ₹5 crore and six above it. Set the code on the product once in SimpleERP and it prints on every invoice line and groups the HSN summary for GSTR-1.
Related
Keep reading
GST billing for retail shops
Counter bills for walk-in buyers and GST invoices for businesses, with nil, 5% and 18% lines on one bill and a UPI QR to pay.
Read moreRetail
Counter invoices with a UPI QR, stock by store with a low-stock list, and the day's cash and bank.
Read moreHSN code
The number that classifies goods for GST and customs, and so decides their GST rate.
Read more
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