Knowledge Centre
HSN and SAC codes, in plain terms
HSN classifies goods, SAC classifies services. Both tell the system what you sold and at what rate it is taxed.
HSN, for goods
The Harmonised System of Nomenclature is an international classification, extended in India. Codes run from two to eight digits, getting more specific as they lengthen: the first digits give the chapter, the later ones the exact article.
SAC, for services
Services use the Services Accounting Code, a six-digit classification. Consulting, professional and technical services all sit under their own headings, and the code goes on the invoice in the same place an HSN would.
How many digits
The number of digits you must report depends on your aggregate turnover, with smaller businesses reporting fewer. The requirement has tightened over time, so check the current position rather than assuming what applied a few years ago.
Getting it right once
In billkraft the code lives on the item, not the invoice, so you classify a product once and every invoice carries it correctly. It flows through to the PDF and to GSTR-1 without re-keying.
General information about how GST works, not tax advice. Rules change and the detail matters, so check your own position with your accountant.
Try it on your own numbers
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