Understanding HSN and SAC Classifications in India
HSN (Harmonized System of Nomenclature) is used for physical, tangible goods (like clothing, electronics, machinery, or medicines).
SAC (Services Accounting Code) is used exclusively for intangible commercial services (like software consulting, legal advice, hospitality, or freight).
What is the Difference Between HSN and SAC Codes?
Both codes exist to prevent ambiguity on tax invoices. For instance, rather than having a seller describe an item simply as "computer accessory" (which could mean anything), specifying HSN 8471 tells the tax portal exactly what the item is and validates that the 18% rate was applied correctly.
| Feature | HSN Code (Physical Goods) | SAC Code (Services) |
|---|---|---|
| What it covers | Physical products you can touch, store, and ship | Services, software consulting, and intellectual labor |
| How many digits? | 2, 4, 6, or 8 digits (based on turnover) | Uniformly 6 digits (always begins with 99) |
| Global standard | Standardized globally by World Customs Organization | Created specifically by CBIC for Indian GST |
| Everyday Example | HSN 8471 (Laptops), HSN 7113 (Gold Jewelry) | SAC 998313 (IT Consulting), SAC 996331 (Restaurant) |
How to Use the HSN Directory with our GST Calculator
Putting the right code on your tax invoice takes three simple steps:
- Type the name of your product or service into the search bar above.
- Note the designated code and statutory rate displayed on the card.
- Click "Use in Calculator" to automatically pass that rate into our main GST calculator tool.