HSN & SAC Codes with GST Rates
In short: HSN codes classify goods and SAC codes classify services; the code decides nothing by itself, but it must sit next to the right GST slab (0/5/12/18/28%) on every GST bill. Wrong codes trigger GSTR mismatches and notices.
Key takeaways
- HSN classifies goods, SAC classifies services; print them beside the GST rate on every bill.
- Use 4-digit HSN up to ₹5 crore turnover, 6 digits above; SAC is generally 6 digits.
- Main slabs are 0/5/12/18/28% — confirm your exact classification before billing.
How many digits do you need?
- Turnover up to ₹5 crore: 4-digit HSN on B2B invoices.
- Turnover above ₹5 crore: 6-digit HSN on invoices.
- Services (SAC): 6-digit codes; widely used ones include 9983 (professional services), 9954 (construction) and 9961/9962 (trade services).
- Small B2C-only sellers face lighter requirements, but printing codes anyway avoids disputes.
GST rate slabs at a glance
| Slab | Typical coverage |
|---|---|
| 0% | Essential food grains, fresh produce, books, Prasadam-type exempt supplies |
| 5% | Packaged foods, footwear under ₹1,000, small restaurants, economy transport |
| 12% | Processed foods, apparel over ₹1,000, many business services |
| 18% | Most goods and services — electronics, software, professional services |
| 28% + cess | Luxury cars, tobacco, aerated drinks and sin goods |
Common mistakes that cause notices
- Copying a supplier's HSN without checking it fits your exact product variant.
- Applying 18% by default to services that legally fall under 12% or 5%.
- Missing HSN summaries in GSTR-1 — the portal cross-checks HSN-wise totals against your liability.
How software removes the guesswork
Accountwala stores the HSN/SAC and rate per item once — every later invoice, purchase bill and GSTR summary reuses it, so codes stay consistent across months and your CA gets clean HSN-wise totals.