HSN (Harmonized System of Nomenclature) codes classify goods, while SAC (Services Accounting Code) codes classify services. Both must appear on GST invoices based on your turnover, and they determine the applicable GST rate.
HSN vs SAC Comparison
| Feature | HSN | SAC |
|---|---|---|
| Used for | Goods / Products | Services |
| Digits | 4-digit, 6-digit or 8-digit | 6-digit (starting with 99) |
| Example | 1001 (Wheat), 8471 (Computers) | 998314 (Management Consulting) |
| Set by | World Customs Organization | Central Board of Indirect Taxes |
When Must You Mention HSN on Invoices?
| Turnover (Previous FY) | Digits Required on Invoice |
|---|---|
| Up to ₹5 Crore (B2B invoices) | 4-digit HSN mandatory |
| Up to ₹5 Crore (B2C invoices) | Optional |
| Above ₹5 Crore (all invoices) | 6-digit HSN mandatory |
| Exports | 8-digit HSN mandatory |
How to Find the Right HSN / SAC Code
- Use the GST Portal HSN search: gst.gov.in → Services → User Services → Search HSN Code
- Download the HSN master list from CBIC website (cbic.gov.in)
- For services, search "SAC code for [service name]" or visit the CBIC services classification portal
- Wrong HSN can lead to wrong GST rate being applied — verify carefully
Pro Tip
Kallapotti has a built-in HSN/SAC code search while creating products — add the code once to a product and it automatically appears on all invoices going forward.