HSN and SAC codes explained: how to find yours
What HSN and SAC codes are, how they're structured, how many digits your GST invoices need, and how to find the right code for your goods or services.
By PaidToFree · · 3 min read
Every item on a GST invoice needs a classification code: an HSN code for goods or a SAC code for services. The code tells the tax system exactly what you're selling, and it's what the GST rate is based on. Pick the wrong one, and you may charge the wrong rate.
Here's how the codes work and how to find yours.
HSN: codes for goods
HSN stands for Harmonized System of Nomenclature. It's an international system, maintained by the World Customs Organization, that most countries use to classify traded goods. India uses it for customs and GST.
HSN codes are hierarchical. Each extra pair of digits narrows it down:
| Digits | Level | Example |
|---|---|---|
| 2 | Chapter | 61: knitted or crocheted clothing |
| 4 | Heading | 6109: T-shirts, singlets and vests, knitted or crocheted |
| 6 | Subheading | 6109 10: of cotton |
| 8 | Tariff item | The most specific level, used in India's tariff |
The first six digits are the same worldwide. India adds two more for extra detail.
A few more 4-digit headings, to give you a feel for them:
0901: coffee3304: beauty and make-up preparations4911: other printed matter, like brochures and posters8471: computers and similar data processing machines
SAC: codes for services
SAC stands for Services Accounting Code. It's India's system for classifying services under GST. SAC codes have six digits and always start with 99.
For example:
998314: IT design and development services998311: management consulting and management services
Like HSN, the first digits give the broad category and the later digits get more specific.
How many digits do I need on my invoices?
It depends on your aggregate turnover in the previous financial year:
| Aggregate turnover | HSN/SAC digits on invoices |
|---|---|
| Up to ₹5 crore | 4 digits on B2B invoices (optional on B2C) |
| Above ₹5 crore | 6 digits on all invoices |
You can always show more digits than the minimum. The same codes also go in the HSN summary of your GSTR-1 return, so it's worth getting them right once and reusing them.
How to find the right code
- Search the GST portal. The GST portal (gst.gov.in) has a search tool for HSN and SAC codes. Search by product or service name, then read the descriptions to find the closest match.
- Check CBIC's GST rate finder, which shows the codes together with their GST rates.
- Look at your supplier's invoices. If you resell goods, your supplier's invoice usually shows the HSN code already.
- Ask your accountant if you're unsure, especially if your product could fit more than one description.
Tips for choosing correctly
- Classify by what the item is, not what you call it. The same product can fall under different codes depending on its material, how it's made or what it's used for, like a cotton T-shirt versus a synthetic one.
- Read the chapter notes. Each HSN chapter has notes explaining what's included and excluded. They settle most borderline cases.
- Be consistent. Use the same code for the same item on every invoice and return.
- Check the rate after you pick the code. GST rates are set per code. Since the rate changes of September 2025, most goods and services are taxed at 5% or 18%, but always confirm the rate for your specific code.
- Get it confirmed if it's genuinely unclear. For high-value or disputed items, businesses can apply for an advance ruling to get an official answer.
Put the codes on your invoice
Once you know your codes, our free GST invoice generator has an HSN/SAC field and a GST rate on every line. It works out CGST, SGST or IGST for you and produces a tax invoice in the right GST invoice format.
This guide is general information. For anything specific to your products or services, check with your accountant.