HSN and SAC codes classify what you sell so the correct GST rate applies. Here is what they are, when they are compulsory and how to find yours.
HSN vs SAC
- HSN (Harmonised System of Nomenclature) classifies goods — for example 8517 for mobile phones
- SAC (Services Accounting Code) classifies services — for example 998314 for IT consulting
Both appear in the “HSN/SAC” column of an invoice and decide the GST rate.
How many digits are required?
Under the current notification, businesses with aggregate turnover up to ₹5 crore must show a 4-digit HSN on B2B invoices, and 6 digits is required above ₹5 crore. Smaller businesses often use more digits anyway because it is more accurate. Rules can change, so check the latest notification or ask your accountant.
Save codes on your products
InvoicePro keeps an HSN/SAC on each product and prints it on every GST invoice.
Start free — no credit cardHow to find the right code
- Search the code finder on the GST portal or the government’s HSN/SAC list by describing your product or service
- Confirm the GST rate that goes with that code (see GST rates in India)
- Save the code on the product so it is filled in automatically each time
HSN summary in your returns
GSTR-1 asks for an HSN-wise summary of your sales — code, quantity, taxable value and tax. InvoicePro’s GST billing software builds this summary from your invoices, net of credit notes. You can also add a code on each line of the free GST invoice generator.
Frequently asked questions
Do services need a code?
Yes — a SAC code, which usually starts with 99.
What if I use the wrong HSN code?
It can lead to the wrong tax rate being charged. Correct it going forward and speak to your accountant about past invoices.
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