HSN vs SAC Codes: A Complete Guide for Indian Businesses | Kallapotti Learn

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 HSN codes classify goods; SAC codes classify services. Learn the difference, when you must mention them on invoices, and how to find the right code for your product.

  6 min read  Updated 16 September 2026  Ahopez Innovations Team HSNSACGST CodesInvoiceClassification HSN (Harmonized System of Nomenclature) codes classify goods, while SAC (Services Accounting Code) codes classify services. Both must appear on GST invoices based on your turnover, and they determine the applicable GST rate.

## HSN vs SAC Comparison

FeatureHSNSACUsed forGoods / ProductsServicesDigits4-digit, 6-digit or 8-digit6-digit (starting with 99)Example1001 (Wheat), 8471 (Computers)998314 (Management Consulting)Set byWorld Customs OrganizationCentral Board of Indirect Taxes## When Must You Mention HSN on Invoices?

Turnover (Previous FY)Digits Required on InvoiceUp to ₹5 Crore (B2B invoices)4-digit HSN mandatoryUp to ₹5 Crore (B2C invoices)OptionalAbove ₹5 Crore (all invoices)6-digit HSN mandatoryExports8-digit HSN mandatory## How to Find the Right HSN / SAC Code

-  Use the GST Portal HSN search: gst.gov.in → Services → User Services → Search HSN Code
-  Download the HSN master list from CBIC website (cbic.gov.in)
-  For services, search "SAC code for [service name]" or visit the CBIC services classification portal
-  Wrong HSN can lead to wrong GST rate being applied — verify carefully
 Pro Tip Kallapotti has a built-in HSN/SAC code search while creating products — add the code once to a product and it automatically appears on all invoices going forward.

 ## File GST returns with zero manual work

 Kallapotti generates GSTR-1-ready data, auto-calculates HSN codes, and tracks ITC — all from
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