How to Update HSN Code in TallyPrime: 5 Steps + Example + Tips

HSN stands for Harmonized System of Nomenclature.

It’s used to classify goods under GST.

If you’re selling or purchasing goods, you need to mention the correct HSN code in your invoices.

In TallyPrime, you can update HSN codes easily for stock items, stock groups, or even ledgers.

Let’s go step by step.

Table of Contents

1: Enable GST in TallyPrime

Before you update HSN codes, make sure GST is enabled in your company.

Go to F11: Features > Statutory & Taxation.
Set Enable Goods and Services Tax (GST)? to Yes.
Fill in your GST details like GSTIN, state, registration type, etc.

Once done, you’re ready to add or update HSN codes.

2: Update HSN in Stock Items in TallyPrime

This is the most common place where HSN codes are entered.

Go to Gateway of Tally > Inventory Info > Stock Items > Alter.
Select the stock item you want to update.
Under GST Details, find the HSN/SAC Code field.
Enter the correct HSN Code (for example, 1001 for wheat).
You can also set the GST rate like 5%, 12%, etc.

Press Ctrl + A to save.

Now, this item will automatically carry the updated HSN and tax rate in your sales and purchase invoices.

3: Update HSN in Stock Groups in TallyPrime (Optional)

If you have many items that fall under the same HSN code, it’s better to set it at the group level.

Go to Gateway of Tally > Inventory Info > Stock Groups > Alter.
Choose the stock group.
Enable Set/alter GST details and press Enter.
Enter the HSN code and tax rate.

This will apply the HSN code to all items under this group—unless the item has its own HSN, which will override the group.

4: Update HSN Using GST Classification in TallyPrime (For Advanced Users)

If you’re using GST Classifications, you can also define HSN and GST rates there.

Go to Gateway of Tally > Accounts Info > Statutory Info > GST Classifications.
Alter or create a classification.
Enter the HSN Code and tax rate.
You can assign this classification to stock items or ledgers.

5: Check the Updated HSN in Invoices in TallyPrime

Now, try recording a sales or purchase invoice using the updated item.

Tally will automatically pick up the HSN code and GST rate.

You can also check this in Print Preview of the invoice.

6. Example of Updating HSN Codes in TallyPrime

Let’s say you sell “Plastic Containers.”

The correct HSN code is 3923, and the GST rate is 18%.

Here’s what you’ll do:

Alter the stock item “Plastic Container.”
Enter HSN as 3923 and set GST rate as 18%.
Save it.

Now, every time you create an invoice using this item, the HSN and GST will be correct.

7. Final Tips to Update HSN Codes in TallyPrime

Always double-check the HSN codes from the official GST portal.
You can update HSN in bulk using Tally’s Import or Excel integration features if needed.
If you’re not sure where to put the HSN, it’s best to update it at the stock item level.

8. Conclusion

Updating HSN codes in TallyPrime is simple and important for GST compliance. Once you set it up correctly, it saves time and reduces errors in tax returns.

Let me know if you’d like a downloadable checklist or guide for HSN and GST setup in Tally.