Search Product Description by HSN / SAC Code
If you're running a business in India, whether it is selling clothes, retail stores, textile business, or services, you've probably come across something called HSN or SAC codes while dealing with GST. Sounds technical? Don’t worry, let's break it all down in a way that actually makes sense.
What Is HSN Code?
HSN Code means “Harmonized System of Nomenclature” is a globally accepted system developed by the World Customs Organization (WCO)) and it came into effect from 1988 to classify goods in a standardized format.
India has adopted the HSN system under GST to make taxation more systematic and internationally compatible. Every product is given an HSN code that helps identify the nature of goods and apply the appropriate tax rate.
How Does HSN Code Works?
HSN codes classify goods using a globally accepted system with about 5,000 product categories and each of them is identified by a 6-digit code. These codes follow a legal and logical structure and are grouped by type and use.
This system establishes uniform classification and helps to apply the correct GST rate and simplifies trade and taxation across countries.
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Understanding The Structure of HSN Code?
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The HSN system is organized to classify products step by step, from broad categories down to specific items. It follows this hierarchy:
Example: Ballpoint Pen — HSN Code: 9608.10.00
So, a simple ballpoint pen falls under 9608.10.00 in the HSN system — this tells the system exactly what the product is and what GST rate to apply.
Turnover-wise HSN Code Requirement Table
Depending on your business's annual turnover, the number of digits you need to mention in your HSN code may vary. Here's a quick breakdown of it:
| Annual Turnover | HSN Code Digits Required |
|---|---|
| Up to ₹5 crore (B2C invoices) | Optional |
| Up to ₹5 crore (B2B invoices) | 4 digits |
| Above ₹5 crore | 6 digits (mandatory) |
What Is The Difference Between HSN & SAC Code?
| Point of Difference | HSN Code | SAC Code |
|---|---|---|
| What It Stands For | Harmonized System of Nomenclature | Services Accounting Code |
| What It’s Used For | Categorizing goods for taxation and trade | Categorizing services for GST and compliance |
| Code Format | Numeric – 4, 6, or 8 digits, depending on turnover | Fixed 6-digit numeric format |
| Breakdown Structure | Chapter (2) → Heading (2) → Subheading (2) → Item (2) → |
Service group (2) → Category (2) → Specific service (2) → |
| Who Uses It | Applicable to sellers, import/export businesses, manufacturers | Applicable to professionals, freelancers, agencies, firms |
| GST Filing Use | Essential for GSTR-1 and GST invoices for goods | Required in GSTR-1 and invoices issued by service providers |
| Turnover Applicability | Threshold-based: mandatory if turnover exceeds ₹1.5 Cr | Mandatory for all GST-registered service providers |
| Level of Detail | Can go up to 8 digits for deeper classification | Uniform 6-digit system for services |
| Scope of Use | Internationally adopted system (by WCO) | Designed specifically for Indian GST compliance |
| Example Code | 10061000 – For Basmati Rice | 998311 – For Management Consulting Services |
| Common Errors to Avoid | Choosing outdated or incorrect codes, skipping turnover rules | Misclassifying services, not updating to latest GST rate |
| Regulating Authority | Adopted globally but implemented in India by CBIC | Created and managed by CBIC (Central Board of Indirect Taxes) |
| GST Impact | Determines GST rates on physical goods | Decides tax rates applicable to services |
| Search Location | GST portal or international trade directories | GST portal’s SAC search tool |
| Updates Frequency | Periodically updated based on global trade norms | Updated as per domestic industry and GST council revisions |
Why Are HSN & SAC Codes Important?
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HSN & SAC codes play a critical role in the GST ecosystem. Let’s see how:
- Ensures uniformity in classification
- Determine accurate GST rates
- Simplify tax filing
- Prevent mismatches or penalties
- Maintain transparency in cross-border trade
How To Find The Right HSN/SAC Code?
Finding the right HSN/ SAC code is necessary to stay compliant. And here's how you can do it:
Use the GST Portal
Go to “Search HSN/SAC Code” under the “Services” tab & find the data.
Use HSN/SAC Code Search Tools
There are various third-party websites and apps that allow quick searches by product/service name.
Consult a Tax Professional
If your product or service is niche, it is best to consult a GST practitioner or CA .
Frequently Asked Questions (FAQs)
6-digit HSN: More specific classification (mandatory for turnover above ₹5 crore).
India also uses 8-digit HSN for even finer categorization.
Below ₹1.5 Cr: Not required
₹1.5–5 Cr: 4-digit HSN
Above ₹5 Cr: 6-digit HSN is a must
DISCLAIMER : The HSN and SAC codes mentioned on this page have been sourced from the official GST portal, as of 01-05-2025.
However, please note that GST rates and codes are subject to periodic updates and amendments by the government. While we strive to provide accurate and updated information, there may be discrepancies due to recent changes.
Insidash does not take responsibility for any incorrect or outdated information mentioned here.
For the most accurate and updated details, especially regarding the "Effective Date" of any GST or cess rate, we strongly recommend visiting the official CBIC (Central Board of Indirect Taxes and Customs) website.
For reliable and comprehensive billing, invoicing, and GST solutions, use Insidash —India’s most trusted platform for GST-compliant invoicing.