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GST for services vs goods

Sell products, provide services, or both? The GST mechanics differ in a few important ways. Here's a clear comparison.

By the Launch My Office team · Updated 2026-06-22 · 5 min read

GST applies to both goods and services, but the details — classification, place of supply, and some procedures — differ. Many businesses do both and need to handle each correctly.

Classification

Goods use HSN codes; services use SAC codes (starting 99). See HSN vs SAC for the full breakdown.

Place of supply

Mixed businesses

If you sell products and charge for services (installation, design, subscriptions), invoice each line with its correct code and rate. One invoice can carry both.

The most common mixed-business slip is using a goods HSN for a service line. Keep SAC for services and HSN for goods, even on the same invoice.

Get the rate right

Confirm goods rates with the HSN Code Finder and check service SAC rates separately.

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Frequently asked questions

Do services use HSN or SAC codes?

Services use SAC codes (starting 99); goods use HSN codes.

Can one invoice have goods and services?

Yes — list each line with its correct code and rate.

Is place of supply the same for goods and services?

No — goods generally follow delivery; services follow type-specific rules.

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