Classification
HSN and SAC codes: what they are and how to find them
HSN codes classify goods and SAC codes classify services under GST. Here is how the classification works.
Under GST, goods are classified using HSN (Harmonised System of Nomenclature) codes and services are classified using SAC (Services Accounting Code) codes.
## HSN codes
HSN is an international classification system. Codes are hierarchical: the first two digits identify the chapter, the next two the heading, and further digits refine the classification. Indian GST invoices commonly require 4, 6 or 8 digit HSN depending on turnover.
## SAC codes
SAC codes are six digits and always begin with 99. The remaining digits identify the service group and specific service.
## Finding the right code
Search by code or by describing the product or service. The classification determines the applicable GST rate, so confirm the code and rate against official notifications before applying it on invoices.