What is the difference between HSN and SAC?

HSN codes classify goods and follow the international Harmonized System. SAC codes classify services and are specific to India — they all begin with 99. If you sell services, you need a SAC; if you sell goods, you need an HSN.

How many digits do I need to show on an invoice?

It depends on turnover. With aggregate annual turnover up to ₹5 crore, a 4-digit code is mandatory on B2B invoices. Above ₹5 crore, a 6-digit code is required on all invoices. Exports require 8 digits.

What is the SAC code for software development?

998314 covers information technology design and development services, which is what most software development and custom application work falls under. Related codes are 998313 for IT consulting and support, 998315 for hosting and infrastructure, and 998319 for other IT services. All are at 18%.

What happens if I use the wrong code?

If the wrong code carries the wrong rate, you have either under-collected tax — which you will owe with interest — or over-collected it, which your customer will dispute. Even where the rate is the same, a mismatched code can cause reconciliation problems in your customer's returns.

Why does this tool not list every goods code with a rate?

Because rates for goods changed substantially under GST 2.0 in September 2025, and they vary at the heading and sub-heading level rather than by chapter. Publishing 22,000 codes with rates we cannot individually verify would be worse than useless. The chapter list narrows your product down; the CBIC portal gives you the authoritative rate.

Do I need an HSN code if I am under the composition scheme?

Composition dealers issue a bill of supply rather than a tax invoice and do not charge GST, so the HSN requirement is lighter. You still need correct classification for your returns.

HSN & SAC Code Finder with GST Rates

Find the SAC code for a service, browse the HSN chapters to narrow down a product, and check how many digits you are required to show on your invoices.

Service rates reflect the current standard 18% band under GST 2.0

What are you looking up?

Search by service or code

How many digits must you show?

Aggregate annual turnover (₹)

4 digits required

Up to ₹5 crore turnover, a 4-digit code is mandatory on B2B invoices.

SAC	Service	GST rate
998311	Management consulting and advisory services	18%
998312	Business consulting services	18%
998313	Information technology consulting and support	18%
998314	Information technology design and development services	18%
998315	Hosting and information technology infrastructure provisioning	18%
998316	IT infrastructure and network management services	18%
998319	Other information technology services	18%
997331	Licensing services for the right to use software	18%
998212	Legal advisory and representation services	18%
998221	Financial auditing services	18%
998222	Accounting and bookkeeping services	18%
998231	Corporate tax consulting and preparation	18%
998232	Individual tax preparation and planning	18%
998321	Architectural advisory services	18%
998331	Engineering advisory services	18%
998341	Geological and geophysical consulting	18%
998361	Advertising services	18%
998362	Purchase or sale of advertising space on commission	18%
998363	Sale of advertising space in print mediaPrint media only. Other media is 18%.	5%
998371	Market research and public opinion polling	18%
998391	Specialty design services including graphic and interior design	18%
998393	Scientific and technical consulting services	18%
998399	Other professional, technical and business services	18%
998511	Executive search and recruitment services	18%
998512	Permanent placement services	18%
998513	Contract staffing services	18%
998519	Other employment and labour supply services	18%
998596	Events, exhibitions and convention services	18%
998597	Landscaping and cleaning services	18%
998721	Repair services for computers and peripheral equipment	18%
999293	Commercial training and coaching services	18%
999294	Other education and training services	18%
997212	Rental or leasing of own or leased non-residential property	18%
997211	Rental or leasing of own or leased residential propertyExempt when let to an individual for residence. Taxable when let to a registered person.	Varies
996511	Road transport services of goodsGoods transport agency rates depend on whether reverse charge applies and whether input credit is taken.	Varies
996311	Hotel and similar accommodation servicesDepends on the declared tariff per unit per night.	Varies
996331	Restaurant and catering servicesStandalone restaurants are generally 5% without input tax credit; rates differ inside hotels above a tariff threshold.	Varies

These are the service codes most Indian businesses need. Most business and professional services are at 18%. Where a rate depends on conditions, it is marked as varying.

Two systems, one purpose

Every supply under GST needs to be classified. Goods use HSN codes, drawn from the international Harmonized System, which is why they are recognisable across borders. Services use SAC codes, which are specific to India and all start with 99. The classification determines the rate, and the rate determines what you charge.

Services are simpler than goods

If you run an agency, a consultancy or a software business, your classification problem is largely solved: almost all business and professional services sit at the standard 18% rate, and the codes are stable. Most such businesses use two or three SAC codes for everything they invoice.

The exceptions worth knowing are the conditional ones — restaurant services, hotel accommodation, goods transport, and residential letting all have rates that depend on circumstances rather than a flat percentage. Those are marked as varying in the list above.

Goods need more care

Goods classification is genuinely harder. The tariff runs to tens of thousands of sub-headings, and GST 2.0 moved a great many items between rate bands in September 2025. Two products that look similar can sit in different chapters and attract different rates.

The chapter list here is a navigation aid: it tells you which part of the tariff to look in. Chapter numbers and titles are a stable classification and did not change with the rate reform. For the exact code and its current rate, use the CBIC portal, which is the authoritative source.

The digit requirement catches people out

How many digits you must show is tied to turnover, not to what you sell. Up to ₹5 crore you need four digits on B2B invoices; above that, six digits on everything. Businesses that cross the threshold mid-year often keep issuing four-digit codes without realising the requirement has changed.

Frequently asked questions

What is the difference between HSN and SAC?: HSN codes classify goods and follow the international Harmonized System. SAC codes classify services and are specific to India — they all begin with 99. If you sell services, you need a SAC; if you sell goods, you need an HSN.
How many digits do I need to show on an invoice?: It depends on turnover. With aggregate annual turnover up to ₹5 crore, a 4-digit code is mandatory on B2B invoices. Above ₹5 crore, a 6-digit code is required on all invoices. Exports require 8 digits.
What is the SAC code for software development?: 998314 covers information technology design and development services, which is what most software development and custom application work falls under. Related codes are 998313 for IT consulting and support, 998315 for hosting and infrastructure, and 998319 for other IT services. All are at 18%.
What happens if I use the wrong code?: If the wrong code carries the wrong rate, you have either under-collected tax — which you will owe with interest — or over-collected it, which your customer will dispute. Even where the rate is the same, a mismatched code can cause reconciliation problems in your customer's returns.
Why does this tool not list every goods code with a rate?: Because rates for goods changed substantially under GST 2.0 in September 2025, and they vary at the heading and sub-heading level rather than by chapter. Publishing 22,000 codes with rates we cannot individually verify would be worse than useless. The chapter list narrows your product down; the CBIC portal gives you the authoritative rate.
Do I need an HSN code if I am under the composition scheme?: Composition dealers issue a bill of supply rather than a tax invoice and do not charge GST, so the HSN requirement is lighter. You still need correct classification for your returns.

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Typing the same codes on every invoice?

Classification is a decision you should make once per product or service, not once per invoice. Smart Dhandha stores HSN and SAC codes against your items so they carry through to every invoice and into your filing data automatically.

HSN and SAC stored per item, not retyped
Codes carry through to invoices and returns
Tax rates applied consistently across billing

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This tool is provided free for general guidance and uses the rates noted above. Statutory rates change, and individual circumstances differ — please confirm with your accountant or a qualified professional before relying on these figures for filing or payroll.