HSN codes
HSN codes and GST rates for wholesale distributors
A distributor's catalogue runs to hundreds of items across a dozen chapters. These are the codes behind the non-food lines that fill most godowns.
In short
Distributors bill soaps under HSN 3401, detergents under 3402, notebooks under 4820, switches under 8536 and steel utensils under 7323, at rates from nil to 18%. SimpleERP holds each code and rate on the product and builds the HSN summary.
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 |
|---|---|---|---|
| 3401 | Toilet soap bars | 5% | Moved from 18% on 22 September 2025 |
| 3402 | Detergent powder and liquid | 18% | Washing preparations |
| 3305 | Hair oil and shampoo | 5% | Moved from 18% on 22 September 2025 |
| 3306 | Toothpaste and tooth powder | 5% | Moved from 18% on 22 September 2025 |
| 9603 | Toothbrushes | 5% | Brooms and other brushes can differ; check |
| 4818 | Tissue, napkins, toilet rolls | 5% | Moved from 18%; check each pack type |
| 3307 | Agarbatti and dhoop | 5% | Other room perfumes can differ |
| 4820 | Exercise books and notebooks | Nil | Registers and diaries can differ; check |
| 9608 | Ball pens and gel pens | 18% | Pens and refills |
| 9609 | Pencils and crayons | Nil | Moved from 12% on 22 September 2025 |
| 8536 | Switches, sockets, MCBs | 18% | Low-voltage switchgear |
| 8544 | Wires and cables | 18% | Insulated electric wire |
| 8414 | Ceiling and table fans | 18% | Fans and exhaust fans |
| 8415 | Air conditioners | 18% | Moved from 28% on 22 September 2025 |
| 8528 | Televisions | 18% | Moved from 28% on 22 September 2025 |
| 8418 | Refrigerators | 18% | Household refrigerators |
| 8509 | Mixer grinders | 18% | Domestic electrical appliances |
| 8516 | Water heaters, irons, induction stoves | 18% | Electro-thermic appliances |
| 7323 | Stainless steel utensils | 5% | Moved from 12% on 22 September 2025 |
| 7615 | Aluminium utensils | Check | Kitchenware of aluminium |
| 6911 | Ceramic tableware | 5% | Moved from 12%; check bone china |
| 9503 | Toys | 5% | Moved from 12% on 22 September 2025 |
| 3924 | Plastic buckets, mugs, containers | Check | Household articles of plastics |
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 wholesale distributor use most?
A general distributor's non-food range sits in a handful of chapters. Personal care and home care come from chapters 33 and 34: hair oil and toothpaste, soaps and detergents. Stationery comes from chapters 48 and 96, electricals and appliances from chapters 84 and 85, steel and aluminium utensils from chapters 73 and 76, and toys and sports goods from chapter 95.
The September 2025 changes split this catalogue further. Many daily-use items dropped to 5% or to nil, while detergents, pens and most electricals stayed at 18%. A single retailer's order can now carry three rates.
What changed on 22 September 2025 for distributors?
Two movements hit a distributor's price list at once. Daily-use personal care, stationery and kitchen items moved down, mostly to 5% or nil. Large consumer durables such as air conditioners and televisions moved from 28% to 18%.
- Soaps, hair oil, toothpaste and toothbrushes moved from 18% to 5%.
- Pencils, crayons and exercise books became nil-rated.
- Steel utensils, ceramic tableware and toys moved from 12% to 5%.
- Air conditioners and televisions moved from 28% to 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
A distributor raises dozens of bills a day to retailers who check every line. SimpleERP prints the HSN, rate and tax per line, and the month's bills roll up into one HSN summary.
- Code and rate per product, set once and printed on every bill.
- Four or six digits, as notified for your turnover band: currently four up to ₹5 crore, six above.
- HSN summary report with quantity, value and tax per code for GSTR-1.
- Sales register and HSN summary both export to CSV for your CA.
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 distributors
A distributor's credit comes mostly from company and super-stockist bills for the same goods it sells. When a product's rate drops, check that your supplier's bills and your own move to the new rate from the same date.
- Purchase bills carry the supplier's GSTIN, HSN and tax for the GSTR-2B check.
- Freight, godown rent and vehicle costs carry their own GST.
- Weighted-average cost per item, kept per warehouse.
- The purchase register shows the month's credit from company and stockist bills, split by rate.
Honest limits
Not included yet
- Batch and expiry tracking
- Cess on any product
- Barcode scanning
FAQ
Questions, answered
What is the HSN code for soap?
Toilet soap bars fall under HSN 3401 and have usually been billed at 5% since 22 September 2025, down from 18%. Detergent powders and liquids sit under 3402 and usually stay at 18%. Confirm the code and rate for each pack with your CA.
What is the HSN code for stationery items?
Exercise books and notebooks fall under 4820 and are usually nil-rated now. Pens sit under 9608, commonly at 18%, and pencils and crayons under 9609, now usually nil-rated. Registers, files and office paper have their own codes, so check each item.
Does SimpleERP suit food and pharma distributors?
Not well. SimpleERP does not track batch numbers or expiry dates and does not compute cess, which food, beverage and pharma distribution usually need. It suits distributors of non-perishable goods such as personal care, stationery, electricals and utensils.
Can I change a product's GST rate when the law changes?
Yes. Edit the rate on the product and every new invoice uses it. Posted invoices keep the rate they were billed at, because SimpleERP never rewrites a posted document. Change the rate on the date the notification takes effect.
Related
Keep reading
GST billing for distributors
Carton-wise GST invoices to retailers with HSN on every line, credit days on the bill and IGST for buyers across the border.
Read moreWholesale & distribution
Keyboard-first GST billing, stock across warehouses at average cost, party ledgers and receivables ageing.
Read moreHSN code
The number that classifies goods for GST and customs, and so decides their GST rate.
Read more
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