GST HSN & SAC Code Finder

What is an SAC Code?
SAC stands for Services Accounting Code. It is a unified code system issued by the Central Board of Indirect Taxes and Customs (CBIC) to classify all services for GST. Under the GST regime, every service provided has a specific SAC code which determines the applicable GST rate.

Is SAC code mandatory on invoices?
Yes, it is mandatory based on your turnover:
- Turnover up to ₹5 Crores: 4-digit SAC code is mandatory for B2B tax invoices.
- Turnover above ₹5 Crores: 6-digit SAC code is mandatory for all invoices (B2B and B2C).

SAC Code vs HSN Code
HSN (Harmonized System of Nomenclature) codes are used for classifying goods. SAC (Services Accounting Code) is used exclusively for services. SAC codes always begin with the number '99'.

What is an HSN Code?
HSN stands for Harmonized System of Nomenclature. It is a multipurpose international product nomenclature developed by the World Customs Organization (WCO). It comprises about 5,000 commodity groups, each identified by a six-digit code, to achieve uniform classification globally. In India, it is used under the GST regime for classifying goods systematically.

Is HSN code mandatory on invoices?
Yes, reporting HSN codes on tax invoices is mandatory based on turnover:
- Aggregate Turnover up to ₹5 Crores: 4-digit HSN code is mandatory for B2B tax invoices.
- Aggregate Turnover above ₹5 Crores: 6-digit HSN code is mandatory for all invoices (B2B and B2C).

HSN Code vs SAC Code
HSN (Harmonized System of Nomenclature) codes are used for classifying goods. SAC (Services Accounting Code) is used exclusively for classifying services.

What are HSN and SAC Codes?
Under India's Goods and Services Tax (GST) framework, all transactions are classified under two systems. HSN (Harmonized System of Nomenclature) codes classify physical goods and commodities, while SAC (Services Accounting Code) codes classify intangible services. Every commercial invoice must mention the correct code to determine the accurate GST rate.

Invoice Compliance Requirements
- Turnover up to ₹5 Crores: 4-digit HSN/SAC code is mandatory for B2B transactions.
- Turnover above ₹5 Crores: 6-digit HSN/SAC code is mandatory for all transactions (B2B & B2C).

Consequences of Incorrect Codes
Using incorrect HSN or SAC codes can result in mismatched tax returns, penalties, audit inquiries, and could delay or block your business customers from claiming their eligible Input Tax Credit (ITC).