Unified classification system for goods and services
HSN (for goods) and SAC (for services) are the official GST classification frameworks used to determine applicable tax rates, exemption eligibility, and reporting accuracy across invoices, returns, and statutory filings. These codes ensure uniform classification, consistent tax treatment, and legal certainty under the GST regime.
By standardising how goods and services are identified, HSN and SAC reduce classification disputes, support correct rate application, and strengthen overall GST compliance for businesses and professionals.
🔢 Code Design Logic
HSN follows a step-wise numerical structure that moves from broad categories to exact products:
- 2 digits → Chapter (category)
- 4 digits → Heading (product group)
- 6 digits → Sub-heading (global standard)
- 8 digits → Tariff item (Customs, where applicable)
SAC uses a service-specific structure:
- 99 → Idenhstifies services
- Next digits → Nature and type of service
- Complete code → GST rate or exemption applicability
🧠Connected Legal References
Each HSN and SAC entry in this section is mapped with relevant GST rate notifications, exemption references, and official circulars or clarifications, wherever issued. This enables smooth navigation from classification → rate → legal authority, without the need for manual cross-verification.
👉 HSN Codes – Goods
👉 SAC Codes – Services
HSN and SAC codes are required in tax invoices, e-invoices, e-way bills, GST returns, and import-export documentation. Accurate classification strengthens compliance, improves audit readiness, and reduces the risk of disputes or penal action.