Government maps 12,167 HSN codes to ministries to boost ease of doing business

The Government of India has developed a guidebook mapping 12,167 Harmonised System of Nomenclature (HSN) codes to 31 ministries and departments, aiming to streamline regulatory processes and enhance ease of doing business, a statement said on Sunday. HSN codes classify goods systematically for domestic and international trade, providing a standard framework for regulation, taxation, and trade negotiations.

The initiative is designed to support data-driven decision-making, facilitate more effective trade agreement negotiations aligned with national priorities, and address previous challenges where unmapped codes were misclassified as ‘Residual Products’ due to unclear ownership. The Department for Promotion of Industry and Internal Trade (DPIIT) conducted a comprehensive value-chain and use-case analysis of all 12,167 HSN codes sourced from the Central Board of Indirect Taxes and Customs (CBIC) Tariff Manual. This was followed by a detailed review of the Allocation of Business Rules, 1961, to assign each code to the relevant ministry or department based on the product’s nature and end-use. According to the commerce and industry ministry, the mapping will simplify regulatory compliance, improve clarity for businesses, and support India’s trade and industrial policy objectives.

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