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.
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
- For goods, it's usually where delivery ends.
- For services, the rules vary by service type.
- Both determine IGST vs CGST/SGST.
- Exports of services can be zero-rated under LUT.
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.
Get the rate right
Confirm goods rates with the HSN Code Finder and check service SAC rates separately.
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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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