HSN vs SAC codes
Every line on a GST invoice carries a classification code. Goods use HSN codes; services use SAC codes. The code tells the tax system what you sold.
By Aura Labs · Last reviewed September 2026
The difference
| HSN | SAC | |
|---|---|---|
| Stands for | Harmonized System of Nomenclature | Services Accounting Code |
| Used for | Goods | Services |
| Origin | International (World Customs Organization) | Indian classification |
| Example | 6205 — men's shirts | 998314 — IT design & development |
Examples for small businesses
Confirm codes on the GST portal — similar-looking products can fall under different headings and rates.
- Mobile phones — HSN 8517
- Cotton shirts — HSN 6205
- Accounting and bookkeeping — SAC 9982
- Consulting / management services — SAC 9983
- Photography services — SAC 998383
Why it matters
The code decides the GST rate and is reported in your returns. A wrong code can mean the wrong rate, and questions from your customer's accountant.
GST rates and rules change. Please verify current rules with official government sources or your CA before filing.
Frequently asked questions
No — services use SAC codes, which start with 99. For example, 998314 covers IT design and development services.
It depends on your aggregate turnover and whether the supply is B2B. As per current notifications, 4 digits is generally required up to ₹5 crore turnover and 6 digits above that. Check the latest notification.
Use the HSN/SAC search on the GST portal.
Official sources
Save codes once, reuse them
BillBook stores the HSN/SAC and rate with each line so repeat invoices are quick.
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