HSN and SAC codes on GST invoices

General information, not tax or legal advice. GST and transport rules change from time to time. Check the official source linked below, or ask your CA, before acting on anything here.

What HSN and SAC are

HSN stands for Harmonised System of Nomenclature. It is an international system that gives every kind of product a number. India uses it to classify goods under GST: the code tells the tax department (and your buyer) exactly what kind of item you sold.

SAC stands for Services Accounting Code. It does the same job for services. SAC codes under GST start with 99 — for example, transport of goods by road falls under a code in the 9965 group.

How the digits work

The code gets more exact as it gets longer:

2 digits — the chapter (a broad family of goods).
4 digits — the heading.
6 digits — the sub-heading.
8 digits — the full tariff item used in India.

So a 6-digit code is simply the first six digits of the full 8-digit code.

How many digits you must print

From 1 April 2021, the number of digits depends on your aggregate turnover in the previous financial year:

Aggregate turnover	B2B invoices (buyer registered)	B2C invoices (buyer not registered)
Up to ₹5 crore	4 digits — compulsory	Optional
More than ₹5 crore	6 digits — compulsory	6 digits — compulsory

You may always write more digits than the minimum. Using the full 8-digit code on every bill is a safe habit, because it avoids confusion if your turnover grows.

Examples from a grocery shop

Here is how the first four digits (the heading) look for a few everyday items:

Item	Heading (4 digits)	What the heading covers
Tea leaves	0902	Tea, whether or not flavoured
Toor dal and other dried pulses	0713	Dried leguminous vegetables
Mustard oil	1514	Rape, colza or mustard oil

Each heading has several 6- and 8-digit codes under it — for example by packing or processing. Pick the full code from the official search tool, and remember that the GST rate is linked to the code, so the right code also means the right rate.

How to find the right code

Open the Search HSN/SAC tool on the official GST portal and search by product name.
Look at the description of each result and pick the one that matches your item most exactly — material, use and form all matter.
Check the same code on your supplier's purchase bill. Suppliers usually know the correct code for their product.
If you are unsure, ask your CA once and then save the code with the item, so you never have to look it up again.

HSN in your GST returns

HSN is not only printed on invoices — you also report an HSN-wise summary of your sales in your GST return. When every item already carries the right code, preparing that summary becomes a matter of adding up your bills.

Common mistakes

Using the same code for every item in the shop.
Copying a code from the internet without reading its description.
Writing only 2 digits on B2B invoices — that has not been enough since April 2021.
Mixing up HSN (goods) and SAC (services) on a bill that has both.

Official sources

Save the HSN once, use it on every bill

Add each item to your GOODLOAD shop with its HSN code and GST rate. Every bill after that picks them up by itself.

Open the app

HSN and SAC codes: how many digits you need