HS Code 85238020: Complete Guide to Classification, Meaning & Trade Use

Accurate product classification is essential for every importer, exporter, and manufacturer dealing with digital media or software-related goods. One of the frequently referenced codes in the electronics and software segment is HS Code 85238020. This guide provides the full explanation, structure, and relevance of this code for global trade and GST compliance.

What Is HS Code 85238020?

The HS code 85238020 falls under the category of digital media, typically referring to software stored on physical media. It is used internationally to classify software supplied on discs, drives, or similar storage formats.

In India, this code aligns with the HSN code 85238020, used for taxation, invoicing, customs declarations, and import–export documentation.

85238020 HSN Code Description

The standard 85238020 HSN code description covers:

“Information technology software recorded on digital media.”

This includes:

• Software on CDs, DVDs, Blu-rays

• Software on USBs or storage devices

• Pre-loaded digital products supplied in physical form

It is important to note that digitally downloaded software does not fall under this HSN classification.

Why HSN Code 85238020 Matters

Using the correct HSN 85238020 ensures:

• Smooth customs clearance

• Accurate duty calculation

• Proper GST invoicing

• Transparent declaration of goods

Misclassification can lead to penalties, delays, and additional compliance checks.

HS Code 85238020 vs. SAC Code 85238020

Some traders confuse goods classification (HSN) with services classification (SAC).

• HSN Code → Used for goods such as physical software media

• SAC Code → Used for software-related services like development, consulting, licensing, or support

There is no SAC code 85238020, because HSN codes are exclusively for goods, not services.

Software supplied as a service is classified under separate SAC categories.

HS Code for Software Services

Software services do not fall under the HSN structure. They are classified under the SAC (Services Accounting Code) system. Examples include:

• IT consulting

• Software development

• SaaS platforms

• Licensing services

The classification depends on the nature of service delivery.

Software HSN Code and GST Rate

For software supplied as packaged goods on physical media under HSN 85238020, GST typically applies as per IT-related goods classification.

However, software services are taxed separately under SAC-based GST rules.

Businesses must correctly determine whether the supply is:

• Goods (HSN) – e.g., software on CD/DVD/USB

• Services (SAC) – e.g., online software subscription

Correct selection ensures compliance and avoids disputes.

Why HS Code Knowledge Matters for Importers & Exporters

Understanding the correct classification under codes like 85238020 HSN helps businesses:

• Avoid customs valuation errors

• Align with international HS standards

• Ensure precise product declaration

• Facilitate cross-border compliance

• Improve supply chain planning

Accurate HS coding becomes even more important when exporting digital media to regulated markets.

How Seair Exim Solutions Helps

As a trusted export data provider, Seair Exim Solutions offers verified and updated trade records that help businesses:

• Check product-specific global demand

• Track exporters/importers using HS Code 85238020

• Analyze country-wise shipment trends

• Understand duty structures

• Identify potential buyers and suppliers

Accurate trade intelligence empowers companies to make smarter decisions in global markets.

Conclusion

The HSN code 85238020 plays a key role in classifying software stored on physical media. Understanding the correct HS code ensures smooth customs clearance, accurate GST taxation, and compliance with international standards. With expert data support from Seair Exim Solutions, traders can easily navigate classification, documentation, and market analysis.