What is the difference between HSN and SAC?

HSN codes classify goods and come from an international system used for customs. SAC codes classify services, are specific to India and always start with 99.

Is HSN code mandatory for small businesses?

Businesses with turnover up to ₹5 crore must show a 4-digit HSN or SAC on invoices to registered buyers. It is optional on invoices to consumers.

How many digits does a SAC code have?

Six. The first two are always 99, the next two give the service heading and the last two the specific service.

Where can I find the HSN code for my product?

Use the Search HSN/SAC facility on the GST portal, the GST rate finder on the CBIC website, or the Customs Tariff. For a genuine doubt, take professional advice or an advance ruling.

HSN and SAC codes under GST

Updated 11 October 2026

HSN (Harmonised System of Nomenclature) codes classify goods, and SAC (Services Accounting Code) codes classify services. Under GST, the code decides which rate applies, and most businesses must print it on their invoices: 4 digits if turnover is up to ₹5 crore and 6 digits above that.

What is an HSN code?

HSN is an international system created by the World Customs Organization and used by most countries for customs and trade statistics. India uses it for both customs duty and GST, so the same product has the same code at the port and in your GST return. Goods are grouped from raw materials to finished products, with each level adding detail.

How the digits work

Digits	Level	Example
2	Chapter	61: knitted or crocheted clothing
4	Heading	6109: T-shirts, singlets and vests, knitted
6	Sub-heading (international)	6109 10: of cotton
8	Tariff item (India's own detail)	6109 10 00

The first six digits are the same worldwide. India adds two more digits in its customs tariff for finer detail.

What is a SAC code?

Services are not covered by the international HSN, so India uses its own Services Accounting Code, placed under chapter 99. Every SAC is 6 digits and starts with 99. The next two digits give the service heading, and the last two narrow it down. For example, heading 9983 covers other professional, technical and business services, and 998311 is management consulting and management services.

How many digits to show on invoices

Aggregate turnover in the previous year	Digits required
Up to ₹5 crore	4-digit HSN or SAC on invoices to registered buyers (optional for sales to consumers)
Above ₹5 crore	6-digit HSN or SAC on all invoices

These rules have applied since 1 April 2021. You also report an HSN-wise summary of sales in your GSTR-1, and the HSN appears on e-way bills and e-invoices.

Common examples

Code	Description
0401	Milk and cream
0902	Tea
1006	Rice
3004	Medicines in measured doses or retail packs
8415	Air conditioners
8517	Telephones, including mobile phones
8703	Motor cars
8711	Motorcycles and scooters
9954	Construction services
9963	Accommodation, food and beverage services
9965	Goods transport services
9971	Financial and related services
9982	Legal and accounting services
9984	Telecommunications, broadcasting and information supply services
9992	Education services
9993	Human health and social care services

Worked example. A Chennai shop with turnover of ₹3.5 crore sells to a registered retailer in Madurai: 10 cotton T-shirts at ₹800 each and one mobile phone at ₹15,000. Its invoice shows 4-digit codes:

HSN 6109, T-shirts: ₹8,000 taxable. Each is priced under ₹2,500, so GST is 5% = ₹400.
HSN 8517, mobile phone: ₹15,000 taxable at 18% = ₹2,700.
Total taxable value ₹23,000, total GST ₹3,100 (₹1,550 CGST + ₹1,550 SGST), invoice total ₹26,100.

If the shop's turnover were ₹7 crore, it would have to show 6-digit codes, such as 6109 10 for the cotton T-shirts.

The HSN summary in GSTR-1

Apart from printing codes on invoices, every regular taxpayer reports an HSN-wise summary of outward supplies in Table 12 of GSTR-1. For each code you show the quantity, unit, taxable value and tax. The portal now asks you to report B2B and B2C supplies separately in this table, and the number of digits follows the same ₹5 crore rule. The summary should match the invoice details in the rest of the return, so a business that uses consistent codes in its billing software has little extra work.

Why the right code matters

Since GST rates are set by HSN and SAC heading, a wrong code can mean a wrong rate. If you charge less than the correct rate, you owe the difference with interest and possibly a penalty. If you charge more, your customers overpay and you may lose business. Tax officers often start a scrutiny by comparing HSN codes with rates.

How to find the right code

Use the HSN and SAC search on gst.gov.in (Search HSN/SAC) or the GST rate finder on cbic-gst.gov.in.
Check the code your supplier uses for the same item, but do not copy it blindly.
For services, the services classification scheme annexed to the GST rate notification for services lists every SAC.
For a genuine dispute about classification, an advance ruling from your state's Authority for Advance Ruling gives a binding answer for your business.

Once you know the rate for your code, use the GST calculator to work out the tax. See GST rates in 2026 for the current slabs.