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

HSN & SAC Code Finder

Looking for the right HSN or SAC code for your business? Try our free HSN & SAC Code Finder tool to accurately classify your goods and services.

[wp_code id=”2″]

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%

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

 

Chapter	Commodities
Section I Animals and Animal Products
Chapter 1	Animals
Chapter 2	Meat and edible offal
Chapter 3	Fish, molluscs, crustaceans, and other aquatic invertebrates
Chapter 4	Dairy produce, birds’ eggs, honey and other edible products of animal origin
Chapter 5	Other products of animal origin
Section II. Vegetables and Vegetable Products
Chapter 6	Live trees and plants, bulbs, roots, cut flowers and ornamental foliage
Chapter 7	Edible vegetables, certain roots and tubers
Chapter 8	Edible fruit and nuts, the peel of citrus fruits or melons
Chapter 9	Tea, coffee, mate and spices
Chapter 10	Cereals
Chapter 11	Milling products, malt, wheat gluten, starches, and inulin
Chapter 12	Oil seeds and oleaginous fruits, grains, straw and fodder, seeds and fruit
Chapter 13	Lac, gum, resin, and other saps and extracts
Chapter 14	Vegetable plaiting materials, and vegetable products not specified elsewhere
Section III. Animal or Vegetable Oils, Their Cleavage Products, Waxes, and Prepared Edible Fats
Chapter 15	Animal or vegetable oils, their cleavage products, waxes, and prepared edible fats
Section IV. Prepared Food, Beverages, Spirits, Tobacco and Tobacco Substitutes
Chapter 16	Preparation of meat, fish, or crustaceans
Chapter 17	Sugar and sugar confectionery
Chapter 18	Cocoa and cocoa preparations
Chapter 19	Preparations of cereals, starch, flour, milk, and pastry products
Chapter 20	Preparation of vegetables, fruits, nuts, or plant parts
Chapter 21	Miscellaneous edible preparations
Chapter 22	Beverages, vinegar, and spirits
Chapter 23	Residue and food waste, prepared animal fodder
Chapter 24	Tobacco and tobacco substitutes that are manufactured
Section V. Minerals
Chapter 25	Salt, earths, and stones, sulfur, plastering material, lime, and cement
Chapter 26	Ores, slag, and ash
Chapter 27	Mineral fuel, mineral oils and products of their distillation, mineral waxes
Section VI. Chemical Products or of Allied Industries
Chapter 28	Inorganic chemicals, organic or inorganic compounds of precious metals
Chapter 29	Organic chemicals
Chapter 30	Pharmaceutical products
Chapter 31	Fertilizers
Chapter 32	Tanning or dyeing extracts, tannins and their derivatives
Chapter 33	Essential oils and resinoids, cosmetic or toilet preparations
Chapter 34	Soap, washing preparations, organic surface-active agents
Chapter 35	Albuminoidal substances, glues, enzymes
Chapter 36	Explosives, pyrotechnic products
Chapter 37	Photographic or cinematographic goods
Chapter 38	Miscellaneous chemical products
Section VII. Plastics, Rubber, and Articles Thereof
Chapter 39	Plastics and plastic articles
Chapter 40	Rubber and rubber articles
Section VIII. Raw Hides and Skins, Furskins and Articles Thereof, Leather, and Related Goods
Chapter 41	Raw hides and skins (other than furskins) and leather
Chapter 42	Articles made of leather
Chapter 43	Furskins 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 44	Wood and wooden articles, wood charcoal
Chapter 45	Cork and articles of cork
Chapter 46	Manufactures 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 47	Pulp of wood or other fibrous cellulosic material, recovered paper or paperboard (waste and scrap)
Chapter 48	Paper and paperboard, articles made of paper pulp, or articles made of paper or paperboard
Chapter 49	Printed books, pictures, newspapers, and other products of the printing industry
Section XI. Textile and Textile Articles
Chapter 50	Silk
Chapter 51	Wool, fine or coarse animal hair, horse hair yarn and other woven fabrics
Chapter 52	Cotton
Chapter 53	Other vegetable textile fibres, paper yarn and woven fabrics made of paper yarn
Chapter 54	Man-made filaments
Chapter 55	Man-made staple fibres
Chapter 56	Wadding, felt and nonwovens, twine, cordage, special yarns, ropes, and cables and articles thereof
Chapter 57	Carpets and textile floor coverings
Chapter 58	Special woven fabrics, lace tapestries, tufted textile fabrics, trimmings, and embroidery
Chapter 59	Impregnated, covered, coated, or laminated textile fabrics, textile articles made for industrial use
Chapter 60	Knitted or crocheted fabrics
Chapter 61	Articles of apparel and clothing accessories that are knitted or crocheted
Chapter 62	Articles of apparel and clothing accessories that are not knitted or crocheted
Chapter 63	Other 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 64	Footwear, gaiters, etc., and the parts of such articles
Chapter 65	Headgear and parts thereof
Chapter 66	Umbrellas and sun umbrellas, walking sticks, seat sticks, riding crops and parts thereof, and whips
Chapter 67	Prepared 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 68	Articles made of stone, plaster, cement, asbestos, mica or similar materials
Chapter 69	Ceramic products
Chapter 70	Glass 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 71	Natural 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 72	Iron and steel
Chapter 73	Articles made of iron or steel
Chapter 74	Copper and articles thereof
Chapter 75	Nickel and articles thereof
Chapter 76	Aluminium and articles thereof
Chapter 77	(Reserved for possible future use)
Chapter 78	Lead and articles thereof
Chapter 79	Zinc and articles thereof
Chapter 80	Tin and articles thereof
Chapter 81	Other base metals, cermets, and articles thereof
Chapter 82	Tools, implements, spoons and forks, cutlery, of base metal, and parts thereof
Chapter 83	Miscellaneous 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 84	Nuclear reactors, machinery and mechanical appliances, boilers, and parts thereof
Chapter 85	Electrical 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 86	Tramway 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 87	Vehicles other than tramway or railway rolling stock, and parts and accessories thereof
Chapter 88	Aircraft, spacecrafts, and parts thereof
Chapter 89	Ships, 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 90	Optical, photographic, cinematographic, checking, measuring, precision, medical or surgical instruments and apparatus, parts and accessories thereof
Chapter 91	Clocks and watches and parts thereof
Chapter 92	Musical instruments, and parts and accessories of such articles
Section XIX. Arms and Ammunition, Parts and Accessories Thereof
Chapter 93	Arms and ammunition, parts and accessories thereof
Section XX. Miscellaneous Manufactured Articles
Chapter 94	Furniture, 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 95	Toys, games and sports requisites, parts and accessories thereof
Chapter 96	Miscellaneous manufactured articles
Section XXI. Works of Art, Collectors’ Pieces and Antiques
Chapter 97	Works of art, collectors’ pieces and antiques
Chapter 98	Project imports, laboratory chemicals, personal imports by air or post, passenger’s baggage, ship stores
Chapter 99	Services

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 Invoices	HSN Digits for B2C Invoices
Up to ₹5 crore	4 (Mandatory)	4 (Optional)
Above ₹5 crore	6 (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.