HSN & SAC Codes: What They Are and How to Find Yours

If you've ever filled in a GST invoice and stared blankly at the "HSN/SAC" field, you're not alone. These codes are mandatory on most invoices, and getting them wrong — or leaving them out — can cause problems during GST audits and return filing. Here's what they mean and how to find the right one in a few minutes.

HSN (Goods) vs SAC (Services)

HSN stands for Harmonised System of Nomenclature. It is an internationally standardised system developed by the World Customs Organization (WCO) for classifying traded goods. India adopted it for GST, mapping every product — from raw cotton to complex machinery — to a numeric code.

SAC stands for Services Accounting Code. It serves the same purpose as HSN but for services. SAC codes were introduced by India's Central Board of Indirect Taxes and Customs (CBIC) specifically for GST.

The practical rule: if you sell goods, use an HSN code. If you provide services, use a SAC code. The invoice field is typically labelled "HSN/SAC" since it serves both purposes.

Why Your Invoice Needs Them

GST returns — specifically GSTR-1 — require you to report supplies broken down by HSN/SAC. This lets the tax authority verify that the GST rate you charged matches the rate applicable to that code.

From a compliance standpoint, missing or incorrect HSN/SAC codes on a tax invoice can be flagged during scrutiny. For your buyers, it affects their ability to claim input tax credit cleanly, since their return-matching relies on the same codes.

Beyond compliance, HSN/SAC codes are how the GST rate for a product or service is formally determined — they're the underlying key that maps to the GST rate slabs. If you're unsure whether something is taxed at 5% or 18%, tracing the HSN/SAC is the authoritative way to confirm.

It is worth understanding the risk of getting this wrong. If you use an HSN/SAC code that maps to a lower GST rate than the correct one, you may have under-charged tax. On the other side, if the code implies a higher rate, your buyers may dispute the invoice or face ITC mismatch issues. Classification errors tend to surface during annual return reconciliation or GST audits, at which point they can attract demand notices and interest. The fix is straightforward — use the CBIC search tool, note your codes once, and treat them as part of your standard item setup rather than something you figure out per invoice.

How Many Digits You Must Show (By Turnover)

HSN codes are 8 digits long, but you don't always need all 8. The number of digits required on your invoice depends on your aggregate annual turnover in the preceding financial year, as mandated by CBIC Notification 90/2020 (effective 1 April 2021):

SAC codes are always 6 digits for service providers, regardless of turnover.

If you're new to GST or your business just registered, use your best estimate of current-year turnover as a guide, and confirm with your CA.

How to Find Your Code

1. Go to the GST portal HSN search

   Visit https://www.gstin.gov.in and use the HSN/SAC search tool, or go directly to the CBIC GST rate finder at search.cbic.gov.in.

2. Search by keyword

   Type a plain-English description of your product or service — for example "website design" or "cotton fabric". The tool returns a list of matching codes.

3. Confirm the GST rate

   Each result shows the associated GST rate. If multiple codes seem relevant, pick the one whose description most closely matches what you actually supply, and verify the rate matches what you charge.

4. Cross-check with a CA if unsure

   For ambiguous or high-value categories (custom machinery, compound financial instruments, mixed supplies), run your chosen code past a CA or GST practitioner to confirm. Classification disputes can lead to back-tax demands.

5. Note it down for future invoices

   Once confirmed, record the code alongside the item name so you never need to repeat the lookup.

Common Service SAC Codes

These cover a large share of what Indian freelancers and small service businesses do:

These are common examples to illustrate the range of codes — you should verify your exact code against the current CBIC SAC/HSN schedule on the GST portal (search.cbic.gov.in), since classifications are detailed and descriptions matter.

In E-BillR's Items catalog, you can attach the HSN or SAC code to each saved item. When you add that item to an invoice, the code fills in automatically — no copy-pasting required. See the Items guide for how to set that up.

For more on how these codes connect to your invoicing obligations, see what is GST and the GST invoice format checklist.