GST HSN SAC

 

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📘 CODES FOR GST ( Goods & Services Tax)

Type	Code Name	Full Form	Digits	Purpose
Goods	HSN Code	Harmonised System of Nomenclature	6–8 digits	To classify goods under GST
Services	SAC Code	Service Accounting Code	6 digits	To classify services under GST.

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• Both codes help in standardized taxation and invoicing under GST.
  
  

• HSN – derived from the World Customs Organization (WCO) system.

HSN code is 6 digits. However, some countries, such as India, add extra digits for more detailed classification, making the code 8 digits long.  Here is a breakdown of the HSN code structure:

• 6-digit HSN: The worldwide standard developed by the World Customs Organization (WCO).

• First 2 digits: Chapter number.

• Next 2 digits: Heading within the chapter.

• Last 2 digits: Subheading within the heading.

• SAC – developed by the Central Board of Indirect Taxes & Customs (CBIC) for services.

8-digit HSN: An expanded code used in some countries, including India, for more precise classification and taxation.

• First 6 digits: The international HSN code.

• Last 2 digits: Additional details, also known as the tariff item. 

• Mention of HSN or SAC on invoices is mandatory depending on turnover thresholds.
  

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