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
- Search by product or service on the GST portal's HSN/SAC search
- Use the most specific code that describes what you sell
- 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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