Disclaimer :Please consult with a qualified chartered accountant or a tax consultant and verify the HSN/SAC code provided by the HSN/SAC Search before using it for your business. We disclaim all liabilities arising out of the HSN/SAC Search.
Frequently Asked Questions
What are HSN codes?
The Harmonized System of Nomenclature (HSN) is an internationally accepted method of naming, classifying and identifying products. HSN codes are used to classify goods to calculate GST.
What are SAC codes?
Service Accounting Codes (SAC) is a unique code provided for recognition, measurement and taxation of services.
Where should the HSN/SAC code be mentioned?
These codes must be mentioned when you register for GST, on your invoices, and on your GST returns which you need to upload on the GST Portal.
What type of businesses are not required to use HSN code while selling their goods?
Businesses with an annual turnover less than Rs. 1.5 Crores are not required to use HSN codes to sell their goods. Businesses registered under the composition scheme are not required to mention HSN codes on their invoices.
How many codes are businesses required to mention on the invoice?
2-digit codes: Businesses with an annual turnover above Rs. 1.5 crores and below 5 crores will be required to use 2-digit codes.
4-digit codes: Businesses with an annual turnover of Rs. 5 crores and above will be required to use 2-digit codes.
8-digit codes: This is the worldwide standard. This will be compulsory in case of import/export of goods.
How are products classified under HSN code?
A product is classified under sections, chapters, headings, and subheadings. For example, if you are selling fresh bananas, you can find your HSN code under Section 02: Vegetable Products, Chapter 08: Edible fruits and nuts; peel of citrus fruits or melons, Heading 03: Bananas including Plantains, Subheading 9010: Bananas, fresh. Your HSN code will be 0803. If you are exporting bananas, your HSN code will be 08 03 9010.[Illustration] HSN Code format - [xx] [xx] [xx xx] Chapter Heading Subheading