HSN code vs SAC code: what's the difference?
Sell products and you need HSN codes. Provide services and you need SAC codes. Here's how the two systems differ and when each applies.
Under GST, every supply must be classified — goods with an HSN code and services with a SAC code (Services Accounting Code). They look similar but serve different purposes, and many sellers who do both get them mixed up.
HSN codes — for goods
HSN (Harmonised System of Nomenclature) classifies physical products. If you sell anything tangible — clothing, electronics, food, cosmetics — you use an HSN code. Find yours instantly with the HSN Code Finder.
SAC codes — for services
SAC codes classify services such as consulting, freelancing, software development, logistics and commission income. All SAC codes begin with 99. For example, 9983 covers other professional and technical services, while 9985 covers support services.
| Feature | HSN | SAC |
|---|---|---|
| Classifies | Goods | Services |
| Maintained under | WCO / Customs Tariff | GST (CBIC) |
| Typical prefix | Chapter 01–98 | 99 |
| Example | 6109 (T-shirts) | 998314 (IT consulting) |
When a seller needs both
Many e-commerce businesses earn both kinds of income. You sell products (HSN) but also charge for installation, design or a subscription (SAC). On a single invoice you can list goods lines with HSN and service lines with SAC, each at its own GST rate.
Getting the rate right
Both codes drive the GST rate. Once you've identified the code, use the Reverse GST Calculator to confirm tax-inclusive vs exclusive amounts, and read our guide to GST rate slabs to sense-check the percentage.
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Can one invoice have both HSN and SAC codes?
Yes. If you supply goods and services together, list each line with its correct code and rate on the same tax invoice.
Do freelancers use HSN or SAC?
Freelancers supply services, so they use SAC codes (starting with 99), not HSN codes.
Where can I find my SAC code?
SAC codes are published by CBIC. For goods, use our free HSN Code Finder; for services, our team can help identify the correct SAC during a consultation.
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