GST and HSN codes for B2B orders of frames, wall art and home decor in India

For a business buyer, GST is not just a line on the bill. It decides your landed cost, the input tax credit your accountant can claim, and whether your own sales invoices match your purchases. Frames, canvas prints and wall decor sit across several product headings, so the right code and rate depend on what the item is made of and how it is made.

This guide explains what to look for on a quote and an invoice, and which questions to take to your accountant. It describes how the rules read on the date we checked them (8 November 2026).

HSN stands for Harmonised System of Nomenclature. It is a numeric product code. Each product heading gets a code, and the rate of GST is tied to that code or to the entry that describes the goods.

Rule 46 of the CGST Rules lists what a tax invoice must contain. Among the items are the supplier's name, address and GSTIN, a serial number, the date, the recipient's details, the HSN code, a description, quantity, taxable value, the rate and amount of tax, and the place of supply [1]. The same rule lets the Board notify how many HSN digits each class of taxpayer must show [1].

Notification 78/2020 sets the digits by the supplier's aggregate turnover in the previous financial year: 4 digits up to 5 crore rupees and 6 digits above 5 crore rupees, effective 1 April 2021 [2]. A supplier up to 5 crore rupees may leave the digits out on invoices to unregistered persons [2]. For a B2B invoice, where you are registered, the digits apply.

The GST portal applies the same split to return filing. From the May 2025 return period, Table 12 of GSTR-1 and 1A requires the code to be picked from a drop-down, and the table is split into B2B and B2C tabs [3]. Phase 4 was described as to be communicated later [3], so this area keeps changing.

Products are classified by their own nature, so one order can carry more than one code. The table below shows the headings that come up most often. It names headings only. It does not give rates, because rates depend on the exact item and on notifications that have changed recently. Your supplier and accountant must confirm the code for each item.

Two points help. First, in September 2025 the GST Council (56th meeting) recommended a simplified structure with two main rates of 5 percent and 18 percent plus a special 40 percent rate for a few goods, applying from 22 September 2025 for most goods [5][6]. Second, the rate you pay is the rate in force at the time of supply. If goods were supplied before a rate change but invoiced after it, the official FAQ explains that the time of supply depends on when payment is received and when the invoice is issued [5].

Handicrafts have their own concession notification. It covers only goods that are predominantly made by hand and carry ornamentation, in-lay or similar work of a substantial nature [4]. Wooden frames for paintings and photographs (heading 4414) appear in that list [4]. The test in the notification is goods predominantly made by hand, with substantial ornamentation or in-lay work [4]. A factory-made printed frame may not meet it, so do not assume the concession applies; confirm with your accountant.

Official copies of the schedules differ by version. The updated notification copy we read shows different rate columns before and after its 2025 amendment [4], and a government press note describes cuts for paintings, sculptures and handicraft idols from 12 percent to 5 percent [6]. We could not read the full current schedule for every heading. Check the live rate notification before you price.

Use this short checklist when an invoice arrives.

• GSTIN and legal name: must match your purchase order and the name on your own registration.
• HSN and description: the code should fit the item described [1].
• Taxable value: this is after discount or abatement [1].
• Rate and amount: Rule 46 asks for the rate and amount of central, State, integrated or Union territory tax [1]. Which applies depends on whether the supply is within or across states, so confirm with your accountant.
• Place of supply: shown on the invoice, with the state name for inter-State supply [1].
• Delivery address: shown if it differs from the place of supply [1].

If a line looks wrong, ask for a corrected invoice or a credit note before you pay. Fixing it later is harder.

This is an invented scenario to show the steps. No real quotes, prices or rates are used.

A Delhi home-decor brand orders three items from a manufacturer in another state: a printed framed picture, a plain frame without print and a set of wall plaques. The buyer asks for a quote with an HSN code and a rate per line.

1. The quote shows three lines, each with its own code. The accountant checks each code against the item and notes that one line may be treated differently from the others.
2. The goods move from the factory to a buyer in another state, so the invoice would normally show integrated tax rather than a central and state split; your accountant confirms.
3. The buyer checks the supplier's GSTIN, the code digits and the place of supply against Rule 46 [1].
4. The accountant confirms the rate for each line from the current notification and files the invoice for credit.

The lesson: ask for line-level codes and rates early, because a single mixed order can carry more than one rate.

• Which HSN and rate apply to each product line, and on what basis?
• Does any item qualify under the handicraft concession, and what proof would be needed?
• Is my credit allowed on this purchase, given my own business type?
• How many HSN digits must my own invoices show, given my turnover [2]?
• If the rate changes between order and delivery, which rate applies [5]?
• For export orders, what documents do I need from the manufacturer?

Bring the quote, the product description and a photo. Classification is a judgement made on facts, so clear facts save time.

ArtzFolio is a private-label and OEM/ODM manufacturer with a working office and factory in Noida and a registered office in Delhi. We work with businesses and brands only. Our quote states price, minimum order, lead time and sample plan. Samples are paid, and the cost can by agreement be reimbursed or adjusted. Payment is 50 percent advance, with the balance as agreed. Shipping is EXW Noida. Please confirm HSN codes and tax treatment with your own accountant, and share the codes your accountant has confirmed.

This guide is general information. It is not legal, tax or customs advice.

1. Rule 46, Central Goods and Services Tax Rules, 2017 (tax invoice), CBIC tax information portal. taxinformation.cbic.gov.in
2. Notification No. 78/2020-Central Tax, CBIC, via GST Council website. gstcouncil.gov.in
3. Reporting of HSN codes in Table 12 of GSTR-1/1A (advisory), GSTN, GST portal. tutorial.gst.gov.in
4. Notification 21/2018-Central Tax (Rate), updated copy (handicraft goods), ICAI GST and Indirect Taxes Committee (copy of CBIC notification). d23z1tp9il9etb.cloudfront.net
5. FAQs on the decisions of the 56th GST Council, PIB, Ministry of Finance, via GST Council website. gstcouncil.gov.in
6. GST Reforms 2025: Relief for Common Man, Boost for Businesses, PIB, Government of India. static.pib.gov.in