Taxzentic Hub

The HSN & SAC Resource Center

Harmonized System of Nomenclature (HSN) and Services Accounting Code (SAC) are mandatory for Indian GST compliance. Use our tools to find the exact code and rate for your business.

HSN Digit Requirement — Quick Reference

Annual Turnover Invoice Type Required Digits
Up to ₹5 Crore B2B (Business to Business) 4-digit HSN
Up to ₹5 Crore B2C (Business to Consumer) Optional
Above ₹5 Crore All Invoices 6-digit HSN
All Exporters Export Invoice & Shipping Bill 8-digit HSN

Frequently Asked Questions

What is an HSN code in GST?
HSN stands for Harmonized System of Nomenclature, a 6-to-8 digit international code system developed by the World Customs Organization. In India's GST system, it is mandatory for classifying goods on tax invoices. Businesses above ₹5 Crore turnover must use 6-digit codes; exporters must always use 8-digit codes.
What is the difference between HSN and SAC codes?
HSN codes are used for goods (physical products, classified under chapters 1-98 of the Customs Tariff), while SAC (Services Accounting Code) codes are used for services (all SAC codes start with "99"). Both appear in the same field on a GST invoice. A single invoice can have both if it includes both goods and services.
What happens if I use a wrong HSN code on my invoice?
Using a wrong HSN code can lead to: (1) ITC mismatch in your buyer's GSTR-2B, causing their ITC to be blocked, (2) Scrutiny notices from the GST department, (3) Differential tax demand if the wrong code carries a lower rate than the correct one, and (4) Penalties under Section 125 of the CGST Act (up to ₹25,000).