If you have ever stared at a GST invoice field called 'HSN Code' and typed in something that looked roughly right without being sure — this guide is for you.

HSN (Harmonised System of Nomenclature) codes exist because every product on earth needs to be classifiable by customs authorities across 200+ countries. India extended this system to GST to bring uniformity.

Getting your HSN or SAC code right matters because: the wrong code can put your product in the wrong tax slab, and during audits, GST officers use these codes to verify tax rates.

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HSN vs SAC — what is the difference?

HSN (Harmonised System of Nomenclature) is used for goods. It is a global system maintained by the World Customs Organization. India uses 8-digit HSN codes for GST, though 4 or 6 digits are acceptable depending on your turnover.
SAC (Services Accounting Code) is used for services. It was developed by India's CBIC specifically for GST classification. All SAC codes start with 99.
If you sell a product + installation service together (like an AC unit with installation), each component gets its own code — HSN for the unit, SAC for the installation.
If you are a software developer: your work is a service — use SAC 998314 (custom software development). If you sell pre-packaged software on a CD, it may qualify as goods under HSN 8523.

HSN code requirement by annual turnover

Annual turnover up to ₹5 crore: 4-digit HSN code required on B2B invoices. B2C invoices are exempt from HSN requirement.
Annual turnover above ₹5 crore: 6-digit HSN code mandatory on all invoices (B2B and B2C both).
Businesses under the e-invoicing mandate (above ₹5 crore): 8-digit HSN code mandatory.
Composition dealers: Must mention HSN on Bill of Supply, same turnover-based rules apply.
Importers and exporters: Always use 8-digit HSN codes, regardless of turnover.

Most commonly used HSN codes in India (quick reference)

Food and beverages: Rice — 1006, Wheat — 1001, Tea — 0902, Packaged snacks — 2106, Restaurant services (SAC) — 996331.
Textiles and garments: Cotton fabric — 5208, Readymade garments — 6109, Sarees — 5007, Footwear — 6403.
Electronics and hardware: Mobile phones — 8517, Laptops and computers — 8471, Printers — 8443, LED lights — 9405, Batteries — 8507.
Construction materials: Cement — 2523, Steel bars — 7214, Bricks — 6901, Sand — 2505, Paint — 3208.
Pharmaceutical and medical: Medicines — 3004, Sanitizers — 3808.
Common services: IT/software services — 9983, Legal services — 9982, Accounting and CA services — 9982, Transport by road — 9965, Hotel accommodation — 9963, Advertising — 9983, Renting of immovable property — 9972.

How to find your exact HSN or SAC code

Step 1 — Go to the GSTN HSN search at gst.gov.in/masters/hsnsearch. This is the official, authoritative source.
Step 2 — Search by keyword. Use generic product categories, not brand names.
Step 3 — Start at the chapter level (2 digits), narrow to heading (4 digits), then subheading (6 digits), then item (8 digits).
Step 4 — Cross-check the GST rate for your code at the CBIC rate finder.
Step 5 — Save the confirmed code in your product library. Once found, you should never need to look it up again for that product.
When in doubt, ask your CA: For new or unusual products, HSN classification can be genuinely complex.

HSN code mistakes that attract GST scrutiny

Using a chapter-level code (2 digits) when 6 or 8 digits are required: This flags your return as incomplete.
Using a code that implies a lower tax rate than the correct one: Creates a tax liability difference that compounds over time.
Mixing HSN and SAC codes: Using an HSN code for a service or a SAC code for a good is a clear signal of incorrect classification.
Copy-pasting a code from a competitor's invoice: Competitors may be wrong too. Always verify independently.

HSN vs SAC — what is the difference?

HSN (Harmonised System of Nomenclature) is used for goods. It is a global system maintained by the World Customs Organization. India uses 8-digit HSN codes for GST, though 4 or 6 digits are acceptable depending on your turnover.

SAC (Services Accounting Code) is used for services. It was developed by India's CBIC specifically for GST classification. All SAC codes start with 99.

If you sell a product + installation service together (like an AC unit with installation), each component gets its own code — HSN for the unit, SAC for the installation.

If you are a software developer: your work is a service — use SAC 998314 (custom software development). If you sell pre-packaged software on a CD, it may qualify as goods under HSN 8523.

HSN code requirement by annual turnover

Annual turnover up to ₹5 crore: 4-digit HSN code required on B2B invoices. B2C invoices are exempt from HSN requirement.

Annual turnover above ₹5 crore: 6-digit HSN code mandatory on all invoices (B2B and B2C both).

Businesses under the e-invoicing mandate (above ₹5 crore): 8-digit HSN code mandatory.

Composition dealers: Must mention HSN on Bill of Supply, same turnover-based rules apply.

Importers and exporters: Always use 8-digit HSN codes, regardless of turnover.

Most commonly used HSN codes in India (quick reference)

Food and beverages: Rice — 1006, Wheat — 1001, Tea — 0902, Packaged snacks — 2106, Restaurant services (SAC) — 996331.

Textiles and garments: Cotton fabric — 5208, Readymade garments — 6109, Sarees — 5007, Footwear — 6403.

Electronics and hardware: Mobile phones — 8517, Laptops and computers — 8471, Printers — 8443, LED lights — 9405, Batteries — 8507.

Construction materials: Cement — 2523, Steel bars — 7214, Bricks — 6901, Sand — 2505, Paint — 3208.

Pharmaceutical and medical: Medicines — 3004, Sanitizers — 3808.

Common services: IT/software services — 9983, Legal services — 9982, Accounting and CA services — 9982, Transport by road — 9965, Hotel accommodation — 9963, Advertising — 9983, Renting of immovable property — 9972.

How to find your exact HSN or SAC code

Step 1 — Go to the GSTN HSN search at gst.gov.in/masters/hsnsearch. This is the official, authoritative source.

Step 2 — Search by keyword. Use generic product categories, not brand names.

Step 3 — Start at the chapter level (2 digits), narrow to heading (4 digits), then subheading (6 digits), then item (8 digits).

Step 4 — Cross-check the GST rate for your code at the CBIC rate finder.

Step 5 — Save the confirmed code in your product library. Once found, you should never need to look it up again for that product.

When in doubt, ask your CA: For new or unusual products, HSN classification can be genuinely complex.

HSN code mistakes that attract GST scrutiny

Using a chapter-level code (2 digits) when 6 or 8 digits are required: This flags your return as incomplete.

Using a code that implies a lower tax rate than the correct one: Creates a tax liability difference that compounds over time.

Mixing HSN and SAC codes: Using an HSN code for a service or a SAC code for a good is a clear signal of incorrect classification.

Copy-pasting a code from a competitor's invoice: Competitors may be wrong too. Always verify independently.

HSN and SAC codes explained — a practical guide for Indian businesses

Stop fighting with invoice templates.

HSN vs SAC — what is the difference?

HSN code requirement by annual turnover

Most commonly used HSN codes in India (quick reference)

How to find your exact HSN or SAC code

HSN code mistakes that attract GST scrutiny

Keep reading

GST tax invoice rules in India: every mandatory field explained

Place of Supply under GST: the rule that determines your tax type

HSN and SAC codes explained — a practical guide for Indian businesses

Stop fighting with invoice templates.

HSN vs SAC — what is the difference?

HSN code requirement by annual turnover

Most commonly used HSN codes in India (quick reference)

How to find your exact HSN or SAC code

HSN code mistakes that attract GST scrutiny

Keep reading

GST tax invoice rules in India: every mandatory field explained

Place of Supply under GST: the rule that determines your tax type