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Turnover based HSN code mechanism introduced under GST HSN (Harmonised System of Nomenclature) is an internationally accepted product coding system formulated under General Agreement on Tariffs and Trade (GATT). In India, currently, adapted HSN coding is currently used under Excise and Customs for classification of products.
Each Chapter can be named as two digit HSN number. Again each two digit HSN number is sub classified to 4 digit HSN code. Based on such 4 digit HSN codes, the sub classification is done as 6 digit HSN code. As per Harmonized System of Nomenclature accepted world wide, normally 6 digit HSN code is accepted worldwide.