HSN Code and SAC Code Explained: What They Are & How to Find Them

On a GST invoice you will often see a column called "HSN/SAC". These codes classify what you sell, and they decide the GST rate.

What is an HSN code?

HSN stands for Harmonised System of Nomenclature. It is an international system for classifying goods, used by India in GST. Codes have 2, 4, 6 or 8 digits, and more digits mean more detail. For example, 8525 covers cameras, and 8521 covers video recording equipment.

What is a SAC code?

SAC is the Services Accounting Code, used for services. SAC codes begin with 99 and have six digits. For example, 998314 covers IT design and development services, and 9983 is a broader group of professional and technical services.

How many digits are required on an invoice?

As a general rule, businesses with annual turnover up to ₹5 crore show at least 4 digits, and those above ₹5 crore show at least 6 digits on B2B invoices. Rules can change, so confirm with your CA. Using the full 6 or 8 digits is always acceptable.

How to find the right code

1. Describe your product or service in simple words.
2. Search the official tariff on the CBIC website or the GST portal's HSN search.
3. Check your supplier's invoice. If you resell the product, they will usually show the HSN.
4. Ask your CA for borderline cases, since the code affects your tax rate.

Why the code matters

• It decides which GST rate applies.
• It is a mandatory part of a valid GST invoice.
• Wrong codes can cause mismatches in returns and notices from the tax department.

Examples

These examples are indicative. Verify the right code for your exact product.

Our quotation generator and invoice generator have an HSN/SAC column on every item, and our industry templates come with sample codes you can edit.