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Glossary · GST

What are HSN and SAC codes?

Reviewed by Ranga & Company

HSN and SAC codes: HSN (Harmonised System of Nomenclature) codes classify goods and SAC (Services Accounting Codes) classify services under GST. The code decides the GST rate and must be shown on invoices.

At a glance

HSN
For goods; internationally standardised
SAC
For services; starts with 99
Digits on invoices
4 digits if turnover is up to ₹5 crore; 6 digits above ₹5 crore
Also needed in
GSTR-1 HSN summary, e-way bills, e-invoices

Why the code matters

The GST rate follows the classification, so a wrong HSN can mean charging the wrong rate. With the 2025 rate rationalisation, many HSN codes moved slabs, so check the current rate for each code you sell.

Finding the right code

  1. Search by product or service on the GST portal's HSN/SAC search
  2. Use the most specific code that describes what you sell
  3. Keep a master list of codes and rates in your billing software

Common mistakes

  • Using a generic 2-digit chapter code on invoices
  • Not updating rates after the September 2025 GST rate changes

Frequently asked questions

How many HSN digits do I need on invoices?

4 digits if your aggregate turnover was up to ₹5 crore in the previous year, and 6 digits above ₹5 crore.

What is the difference between HSN and SAC?

HSN codes classify goods; SAC codes classify services and start with 99.

Where do I find the HSN code for my product?

Use the HSN/SAC search on the GST portal, or ask your tax consultant to confirm the classification and current rate.

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