HSN & SAC Code Finder

HSN vs SAC: What is the Difference?

HSN (Harmonized System of Nomenclature): An internationally accepted 6-to-8 digit classification system used by customs and tax authorities to categorize physical commodities into 98 chapters. Under Indian GST, all manufactured and traded goods must be invoiced with their appropriate HSN code.

SAC (Services Accounting Code): A 6-digit classification system created by the Central Board of Indirect Taxes and Customs (CBIC) specifically for services. All service codes begin with 99, followed by 2 digits for the service group and 2 digits for the specific tariff item.

HSN Digit Requirements by Turnover

What is the difference between HSN and SAC codes in GST?

HSN (Harmonized System of Nomenclature) classifies physical goods across 98 chapters with 2, 4, 6, or 8 digits. SAC (Services Accounting Code) classifies all services under Chapter 99 with standard 6-digit codes.

How many digits of HSN code are mandatory on a GST tax invoice?

Businesses with aggregate turnover up to ₹5 crore must report at least 4 digits on B2B invoices. Businesses with turnover exceeding ₹5 crore must report 6 digits on all B2B and B2C invoices. Import and export transactions require full 8-digit tariff codes.

What is the GST rate if a product is not specifically listed in the rate schedules?

If goods are not specifically listed in Schedules I, III, IV, V, VI, or the exempt schedule, they fall under the residual entry in Schedule II (S. No. 639) and are taxed at 18% (CGST 9% + SGST 9% or IGST 18%).

How often are GST HSN and SAC rates updated by the Government?

GST rates are recommended by the GST Council and notified by the Central Board of Indirect Taxes and Customs (CBIC). Rates shown here reflect Notifications 09/2025 and 10/2025 (Central Tax - Rate) effective 22 September 2025.