Billing › HSN and SAC codes

HSN and SAC codes on an invoice

HSN (Harmonised System of Nomenclature) codes identify goods. SAC (Services Accounting Code) codes identify services. The code tells the tax department, and your buyer, what was sold and which GST rate applies.

How many digits

Your turnover in the last financial year	On invoices to registered buyers (B2B)	On invoices to consumers (B2C)
Up to ₹5 crore	At least 4 digits	Optional
Above ₹5 crore	6 digits	6 digits

Some goods (certain chemicals, for example) must show 8 digits whatever your turnover. You can always show more digits than the minimum.

Examples

What	Code type	Example code
Mobile phones	HSN	8517
Laptops and computers	HSN	8471
Cement	HSN	2523
Accounting and tax services	SAC	998221
Website design and IT services	SAC	998314
Goods transport by road	SAC	996511

Codes are examples to show the format. Always confirm the code and its current GST rate for your exact product or service.

The HSN summary

For a tax invoice, the invoice maker adds a tax summary that groups the taxable value and tax by HSN/SAC code and rate. It is the same grouping your GST return (GSTR-1) asks for, so filing gets easier.

Finding the right code

• Ask your supplier: their invoice to you usually shows the code.
• Search the official GST rate finder on the CBIC website or the HSN search on the GST portal.
• When two codes look possible, the more specific description wins. If still unsure, ask your accountant, because the code decides the rate.