A Comprehensive Guide to HSN and SAC Codes for GST in India | Free HSN & SAC Code Finder

HSN and SAC Code - Complete Guide & Code Finder

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HSN
SAC
Chapter Description HSN Code

India’s Goods and Services Tax (GST) system relies on a structured classification of goods and services to ensure accurate taxation. The Harmonized System of Nomenclature (HSN) and Service Accounting Codes (SAC) are at the heart of this classification. These codes standardize the tax structure, enabling uniformity across businesses and industries. 

What Are HSN and SAC Codes?

HSN Code: Harmonized System of Nomenclature

The HSN code is an internationally recognized system created by the World Customs Organization (WCO) to classify goods systematically. With over 5,000 commodity groups, this code is essential for streamlining global trade and taxation.

In India, HSN codes are adapted for GST compliance. Initially structured with six digits, India extends this to eight for finer classification.

Structure of HSN Code

  • First 2 digits: Chapter (e.g., textiles fall under Chapter 61).
  • Next 2 digits: Heading within the chapter.
  • Next 2 digits: Subheading for further classification.
  • Last 2 digits: (Optional) Added in India for detailed identification.

HSN Code Example

Cotton T-Shirts: 61091000

  • 61: Articles of apparel and clothing accessories, knitted or crocheted.
  • 09: T-shirts, singlets, and other vests.
  • 10: Made of cotton.
  • GST Rate: 12%
HSN code

The HSN structure contains 21 sections, with 99 Chapters, about 1,244 headings, and 5,224 subheadings. Each Section is divided into Chapters. Each Chapter is divided into Headings. Each Heading is divided into Sub Headings. Section and Chapter titles describe broad categories of goods, while headings and subheadings describe products in detail. 

This detailed classification allows businesses to accurately determine tax (GST) rates for their goods, while tax authorities benefit from simplified and efficient tracking of goods and services, reducing disputes and improving compliance.

Chapter-wise Distribution of Goods Using HSN Codes

ChapterCommodities
Section I Animals and Animal Products
Chapter 1Animals
Chapter 2Meat and edible offal
Chapter 3Fish, molluscs, crustaceans, and other aquatic invertebrates
Chapter 4Dairy produce, birds’ eggs, honey and other edible products of animal origin
Chapter 5Other products of animal origin
Section II. Vegetables and Vegetable Products
Chapter 6Live trees and plants, bulbs, roots, cut flowers and ornamental foliage
Chapter 7Edible vegetables, certain roots and tubers
Chapter 8Edible fruit and nuts, the peel of citrus fruits or melons
Chapter 9Tea, coffee, mate and spices
Chapter 10Cereals
Chapter 11Milling products, malt, wheat gluten, starches, and inulin
Chapter 12Oil seeds and oleaginous fruits, grains, straw and fodder, seeds and fruit
Chapter 13Lac, gum, resin, and other saps and extracts
Chapter 14Vegetable plaiting materials, and vegetable products not specified elsewhere
Section III. Animal or Vegetable Oils, Their Cleavage Products, Waxes, and Prepared Edible Fats
Chapter 15Animal or vegetable oils, their cleavage products, waxes, and prepared edible fats
Section IV. Prepared Food, Beverages, Spirits, Tobacco and Tobacco Substitutes
Chapter 16Preparation of meat, fish, or crustaceans
Chapter 17Sugar and sugar confectionery
Chapter 18Cocoa and cocoa preparations
Chapter 19Preparations of cereals, starch, flour, milk, and pastry products
Chapter 20Preparation of vegetables, fruits, nuts, or plant parts
Chapter 21Miscellaneous edible preparations
Chapter 22Beverages, vinegar, and spirits
Chapter 23Residue and food waste, prepared animal fodder
Chapter 24Tobacco and tobacco substitutes that are manufactured
Section V. Minerals
Chapter 25Salt, earths, and stones, sulfur, plastering material, lime, and cement
Chapter 26Ores, slag, and ash
Chapter 27Mineral fuel, mineral oils and products of their distillation, mineral waxes
Section VI. Chemical Products or of Allied Industries
Chapter 28Inorganic chemicals, organic or inorganic compounds of precious metals
Chapter 29Organic chemicals
Chapter 30Pharmaceutical products
Chapter 31Fertilizers
Chapter 32Tanning or dyeing extracts, tannins and their derivatives
Chapter 33Essential oils and resinoids, cosmetic or toilet preparations
Chapter 34Soap, washing preparations, organic surface-active agents
Chapter 35Albuminoidal substances, glues, enzymes
Chapter 36Explosives, pyrotechnic products
Chapter 37Photographic or cinematographic goods
Chapter 38Miscellaneous chemical products
Section VII. Plastics, Rubber, and Articles Thereof
Chapter 39Plastics and plastic articles
Chapter 40Rubber and rubber articles
Section VIII. Raw Hides and Skins, Furskins and Articles Thereof, Leather, and Related Goods
Chapter 41Raw hides and skins (other than furskins) and leather
Chapter 42Articles made of leather
Chapter 43Furskins and artificial fur and articles thereof
Section IX. Wood and Wooden Articles, Wood Charcoal, Cork and Articles of Cork, Basket Ware and Wickerwork, Manufacturers of Straw, Esparto or Other Plaiting Material
Chapter 44Wood and wooden articles, wood charcoal
Chapter 45Cork and articles of cork
Chapter 46Manufactures of straw, esparto or other plaiting materials, basket ware and wickerwork
Section X. Pulp of Wood or Other Fibrous Cellulosic Material, Recovered Paper or Paperboard (Waste and Scrap), Paper and Paperboard and Articles Thereof
Chapter 47Pulp of wood or other fibrous cellulosic material, recovered paper or paperboard (waste and scrap)
Chapter 48Paper and paperboard, articles made of paper pulp, or articles made of paper or paperboard
Chapter 49Printed books, pictures, newspapers, and other products of the printing industry
Section XI. Textile and Textile Articles
Chapter 50Silk
Chapter 51Wool, fine or coarse animal hair, horse hair yarn and other woven fabrics
Chapter 52Cotton
Chapter 53Other vegetable textile fibres, paper yarn and woven fabrics made of paper yarn
Chapter 54Man-made filaments
Chapter 55Man-made staple fibres
Chapter 56Wadding, felt and nonwovens, twine, cordage, special yarns, ropes, and cables and articles thereof
Chapter 57Carpets and textile floor coverings
Chapter 58Special woven fabrics, lace tapestries, tufted textile fabrics, trimmings, and embroidery
Chapter 59Impregnated, covered, coated, or laminated textile fabrics, textile articles made for industrial use
Chapter 60Knitted or crocheted fabrics
Chapter 61Articles of apparel and clothing accessories that are knitted or crocheted
Chapter 62Articles of apparel and clothing accessories that are not knitted or crocheted
Chapter 63Other made up textile articles, sets, worn clothing and textile articles, and rags
Section XII. Footwear, Headgear, Umbrellas, Walking Sticks and Seat Sticks, Whips, Riding Crops and Parts Thereof, Artificial Flowers, Articles of Human Hair, Prepared Feathers and Articles Made Thereof
Chapter 64Footwear, gaiters, etc., and the parts of such articles
Chapter 65Headgear and parts thereof
Chapter 66Umbrellas and sun umbrellas, walking sticks, seat sticks, riding crops and parts thereof, and whips
Chapter 67Prepared feathers and down and articles made thereof, artificial flowers, and articles made of human hair
Section XIII. Articles Made of Stone, Plaster, Asbestos, Cement, Mica, or Other Similar Materials, Glass and Glassware, Ceramic Products
Chapter 68Articles made of stone, plaster, cement, asbestos, mica or similar materials
Chapter 69Ceramic products
Chapter 70Glass and glassware
Section XIV. Natural or Cultured Pearls, Precious Metals Clad With Precious Metal and Articles Thereof, Precious or Semi-Precious Stones, Coins, Imitation Jewellery
Chapter 71Natural or cultured pearls, precious metals, metals that are clad with precious metal and articles thereof, precious or semi-precious stones, imitation jewellery, coins
Section XV. Base Metal and Articles Made of Base Metal
Chapter 72Iron and steel
Chapter 73Articles made of iron or steel
Chapter 74Copper and articles thereof
Chapter 75Nickel and articles thereof
Chapter 76Aluminium and articles thereof
Chapter 77(Reserved for possible future use)
Chapter 78Lead and articles thereof
Chapter 79Zinc and articles thereof
Chapter 80Tin and articles thereof
Chapter 81Other base metals, cermets, and articles thereof
Chapter 82Tools, implements, spoons and forks, cutlery, of base metal, and parts thereof
Chapter 83Miscellaneous articles made of base metal
Section XVI. Machinery and Mechanical Appliances, Electrical Equipment and Parts Thereof, Sound Reproducers and Recorders, Television Image and Sound Reproducers and Recorders, and Parts and Accessories of Such Articles
Chapter 84Nuclear reactors, machinery and mechanical appliances, boilers, and parts thereof
Chapter 85Electrical machinery and equipment and parts thereof, sound reproducers and recorders, television image and sound reproducers and recorders, and parts and accessories of such articles
Section XVII. Vehicles, Aircraft, Vessels, and Associated Transport Equipment
Chapter 86Tramway or railway locomotives, tramway or railway track fixtures and fittings and parts thereof, rolling stock and parts thereof, mechanical (including electro-mechanical) traffic signalling equipment of all kinds
Chapter 87Vehicles other than tramway or railway rolling stock, and parts and accessories thereof
Chapter 88Aircraft, spacecrafts, and parts thereof
Chapter 89Ships, boats and floating structures
Section XVIII. Optical, Photographic, Cinematographic, Checking, Measuring, Precision, Medical or Surgical Instruments and Apparatus, Musical Instruments, Clocks and Watches, Parts and Accessories Thereof
Chapter 90Optical, photographic, cinematographic, checking, measuring, precision, medical or surgical instruments and apparatus, parts and accessories thereof
Chapter 91Clocks and watches and parts thereof
Chapter 92Musical instruments, and parts and accessories of such articles
Section XIX. Arms and Ammunition, Parts and Accessories Thereof
Chapter 93Arms and ammunition, parts and accessories thereof
Section XX. Miscellaneous Manufactured Articles
Chapter 94Furniture, mattresses, mattress supports, bedding, cushions and similar stuffed furnishing, lamps and lighting fittings, which are not elsewhere specified or included, illuminated signs and name-plates and the like, prefabricated buildings
Chapter 95Toys, games and sports requisites, parts and accessories thereof
Chapter 96Miscellaneous manufactured articles
Section XXI. Works of Art, Collectors’ Pieces and Antiques
Chapter 97Works of art, collectors’ pieces and antiques
Chapter 98Project imports, laboratory chemicals, personal imports by air or post, passenger’s baggage, ship stores
Chapter 99Services

SAC Code: Service Accounting Code

SAC classifies services under GST. These codes mirror the structure of HSN codes but are specific to services.

Structure of SAC Code

  • First 2 digits: Always ‘99’ (indicating services).
  • Next 2 digits: Major nature of the service.
  • Last 2 digits: Specific service within that category.

SAC Example

Commercial Training And Coaching Services: 999293

  • 99: Represents services.
  • 92: Training and coaching services.
  • 93: Specific service.
  • GST Rate: 18%

Importance of HSN and SAC Codes in GST

  • Uniform taxation: These codes ensure consistent tax rates across India, reducing discrepancies and disputes.
  • Ease of compliance: Automated systems rely on these codes to streamline GST filing and reconciliation.
  • International alignment: HSN codes align India’s tax system with global trade practices, enhancing cross-border commerce.
  • Reduced manual errors: Businesses avoid misclassification issues by using predefined codes.

Mandatory Usage of HSN and SAC Codes

As of April 1, 2021 (CGST notification number 78/2020 dated 15th October 2020), the declaration of HSN/SAC codes in GST invoices is mandatory based on the annual turnover:

Annual Turnover*HSN Digits for B2B InvoicesHSN Digits for B2C Invoices
Up to ₹5 crore4 (Mandatory)4 (Optional)
Above ₹5 crore6 (Mandatory)6 (Mandatory)

*Annual aggregate turnover for the previous financial year, i.e., for reporting invoice in FY 2021-22, turnover to be referred must be of FY 2020-21.

For exports and imports, an 8-digit HSN code is compulsory to align with international trade standards.

Common Errors and Best Practices

Errors to Avoid

  • Incorrect classification: Using the wrong HSN/SAC code can lead to penalties and delayed refunds. Example: Misclassifying “Cotton T-Shirts” (61091000) under a generic textile category.
  • Omission of codes: Failure to include HSN/SAC codes in invoices can invalidate GST filings.
  • Non-compliance with updates: Codes and GST rules are periodically updated.

Best Practices

  • Use GST-compliant software to auto-generate codes.
  • Refer to the official GST portal for updates on classifications.
  • Consult with tax professionals for ambiguous categories.

Global Relevance of HSN Codes

HSN codes are used by over 200 countries, covering more than 98% of global merchandise trade. India, a member of the WCO since 1971, aligns its classification system with international standards while incorporating specific adaptations.

Key Benefits:

  • Simplified trade documentation.
  • Standardized tariff structures.
  • Enhanced transparency in customs processes.

HSN and SAC codes form the backbone of India’s GST framework, ensuring uniformity and compliance in taxation. By understanding and correctly applying these codes, businesses can simplify GST filings, reduce disputes, and align with international trade practices.

For businesses operating in India, staying updated with the latest HSN/SAC classifications is not just a regulatory requirement but a strategic advantage. Leverage these codes to enhance accuracy, streamline operations, and contribute to a robust compliance ecosystem.

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