HSN and SAC codes

What the codes are

HSN is the Harmonised System of Nomenclature, an international way to classify goods. SAC codes classify services under the scheme that the GST rate notifications use. Each code identifies a kind of product, and the GST rate is linked to it.

Longer codes are more specific. The first digits give the broad chapter and the later digits narrow it to the exact product.

How many digits to show

The number of digits you must show on an invoice, and in the HSN summary of GSTR-1, depends on your annual turnover. The limits and the number of digits are set by notification, and they have changed before. Check the current notification on the GST portal, and ask your accountant if you are near a limit.

Use the number of digits the notification asks for, and a code that exists in the portal list, because the portal checks the code in the data you upload.

How to find the right code

• Search the code finder on the GST portal by the product name.
• Check the description of the code, not only the heading, because the rate follows the exact description.
• Keep the same code for the same item on every invoice, so your reports stay consistent.
• If two codes seem to fit, ask your accountant, since the rate can differ.

Where the code is used

• On the tax invoice, against each line item.
• In the HSN summary of GSTR-1, grouped by code.
• In the e-invoice and the e-way bill, where the code is part of the goods details.

Official sources

• GST portal: search HSN and SAC codes
• GST portal: returns user guide

Related guides

• GSTR-1 explained
• E-invoicing explained

Questions