HSN & SAC Codes Explained

Every product and service in India has a unique classification code under GST. Goods use HSN codes (Harmonised System of Nomenclature) and services use SAC codes (Services Accounting Code).

What is an HSN Code?

HSN is an internationally standardised system for classifying goods. India follows a 6-digit HSN code structure, extended to 8 digits for customs purposes. For GST, taxpayers use 4-digit or 6-digit HSN codes depending on their annual turnover.

Example: 8471 is the HSN code for computers and digital processing units.

What is a SAC Code?

SAC codes are used exclusively for services under Indian GST. All SAC codes start with 99.

Example: 998314 is the SAC code for IT design and development services.

When Are Codes Mandatory?

SAC codes are mandatory for all B2B service invoices regardless of turnover.

Common SAC Codes for IT/Web Businesses

How to Find Your Code

1. Visit the CBIC GST Rate Finder or search "GST SAC code [your service]"
2. Use BillYantra's built-in HSN/SAC search when adding products — click the search icon next to the HSN field
3. Consult your chartered accountant for unusual or mixed-supply scenarios

Adding HSN/SAC to Products in BillYantra

When creating or editing a product/service in Catalogue → Products:

• Enter the code in the HSN/SAC Code field
• It will auto-fill on every invoice line item when that product is selected

Tip: Incorrect HSN/SAC codes can lead to GST return mismatches. Always verify codes with a CA before using them on client invoices.