HSN classifies goods, SAC classifies services. Compare structure, digits, who issues them, invoice rules and mixed supplies — with a simple decision table.
HSN codes classify goods and are based on the World Customs Organization's international system. SAC codes classify services, start with 99 and come from India's GST service classification. Use HSN on lines for goods and SAC on lines for services — one invoice can contain both.
| Point | HSN | SAC |
|---|---|---|
| Classifies | Goods | Services |
| Origin | WCO Harmonized System, adapted by India | CBIC classification based on UN CPC |
| Starts with | Chapters 01–98 | Always 99 |
| GST invoice digits | 4 or 6 by turnover; 8 for customs | Same turnover rule (4 or 6) |
| Used in customs | Yes | No |
| Example | 8471 — computers | 998314 — IT development |
A dealer who sells an AC and charges separately for installation should show the AC with its HSN and installation with SAC 9987, each with its own rate — unless the supply is genuinely composite, in which case the principal supply decides one rate.
In the GSTR-1 HSN summary (Table 12), goods and services both appear; the portal identifies services by the 99 prefix.
Senior contributor at Taxpex Consultancy. Reviewed by a practising Chartered Accountant. Published on 16 October 2026 · Updated on 16 October 2026.
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How many HSN digits must you print on a GST invoice? 4 digits up to ₹5 crore turnover, 6 digits above ₹5 crore, 8 digits for imports/exports — with examples, B2C rules and common mistakes.
16 October 2026 · 12 minA practical method to find the right HSN code: start with the chapter, read section and chapter notes, apply the General Rules of Interpretation and verify the GST rate. With worked examples.
16 October 2026 · 11 minSAC codes explained: the 99 prefix, major service groups (construction, transport, restaurants, professional, IT, rental, financial) with examples, and how to choose the right 6-digit SAC for your invoice.
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