22 August 2026
HSN Code vs SAC Code: How to Find the Right One (with GST Rates)
Every GST invoice for goods or services needs the right classification code — HSN for products, SAC for services. Put the wrong one and you risk rate mismatches and notices. Here's how to tell them apart and find the correct code fast.
Search the free HSN / SAC Code Finder → — by item name or number, with the GST rate.
HSN vs SAC — the short version
- HSN (Harmonized System of Nomenclature) classifies goods. It's an internationally used system; in India it identifies the product and drives its GST rate. Codes are 4, 6, or 8 digits.
- SAC (Services Accounting Code) does the same job for services, and always starts with 99 (e.g. 998314 for software development).
If you sell products, you'll use HSN. If you provide services, you'll use SAC. Businesses that do both will use each where relevant.
How many digits do you need?
The number of digits you must show on the invoice depends on your aggregate annual turnover:
| Aggregate turnover | HSN digits required |
|---|---|
| Up to ₹5 crore (B2B) | 4 digits |
| Up to ₹5 crore (B2C) | optional |
| Above ₹5 crore | 6 digits |
When in doubt, using more digits is safer than fewer.
How to find the right code
- Start from the item, not the code. Search by what you sell — "laptop", "consulting", "t-shirt" — rather than guessing numbers.
- Match the description closely. The same broad category can split into different rates (e.g. footwear, garments by price).
- Check the GST rate that comes with it. The code and rate go together on the invoice.
- Verify edge cases. Some items have conditional rates (by price, composition, or use) — confirm on the GST portal or with your CA.
Common examples
- Software development / IT services → SAC 998314, 18%
- Management consulting → SAC 998311, 18%
- Computers & laptops → HSN 8471, 18%
- Mobile phones → HSN 8517, 18%
- Cotton t-shirts → HSN 6109, 5%/12% (by price)
- Restaurant services → SAC 996331, 5%
Getting it onto the invoice
Once you know the code, the tedious part is remembering to put it on every invoice — correctly, every time. With Simple Billing, you save the HSN/SAC on each product or service once, and it prints on every GST invoice automatically, alongside the tax split. New to GST invoices? Read how to make a GST invoice.
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Codes and rates here are common references — some items carry conditional rates. Always confirm on the official GST portal before invoicing.
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