Last Updated: May 15, 2026 | Reviewed by Parul Singh (GST Practitioner)
Table of Contents:
What is HSN Code?
HSN (Harmonized System of Nomenclature) is a globally recognized system for classifying goods. It was developed by the World Customs Organization (WCO) and is used in over 200 countries. Under GST, HSN codes are used to classify goods for tax purposes.
📌 HSN Code Structure:
- 2 digits: Chapter (broad category)
- 4 digits: Heading (sub-category)
- 6 digits: Sub-heading (detailed classification)
- 8 digits: Tariff item (India-specific, for exports/imports)
What is SAC Code?
SAC (Services Accounting Code) is a 6-digit code used to classify services under GST. Each service has a unique SAC code for uniform taxation across India.
📌 SAC Code Structure:
- First 2 digits: 99 (denotes services)
- Next 2 digits: Broad service category
- Last 2 digits: Detailed service type
Example: 998311 = IT consulting services (99 = services, 83 = IT, 11 = consulting)
How Many Digits of HSN/SAC are Required?
| Annual Turnover | HSN Digits Required | SAC Digits Required |
|---|---|---|
| Less than ₹1.5 crore | 2 digits (Chapter level) | 6 digits (always) |
| ₹1.5 crore to ₹5 crore | 4 digits (Heading level) | 6 digits (always) |
| Above ₹5 crore (6 digits (Sub-heading) | 6 digits (always) | |
| Exports or Imports (8 digits (Tariff item) | Not applicable to services |
Common HSN Codes for Goods with GST Rates
🌾 Agricultural Products (Chapters 1-15)
| HSN Code | Product Description | GST Rate |
|---|---|---|
| 01-05 | Live animals, meat, fish, dairy products | 0% / 5% |
| 06-07 | Live plants, flowers, vegetables, fruits | 0% / 5% |
| 08 | Edible fruits and nuts | 0% / 5% |
| 1006 | Rice | 0% |
| 1101 | Wheat flour | 0% |
| 1701 | Sugar | 5% |
| 2106 | Biscuits | 18% |
🧪 Chemicals & Pharmaceuticals (Chapters 28-38)
| HSN Code | Product Description | GST Rate |
|---|---|---|
| 28 | Inorganic chemicals | 18% |
| 29 | Organic chemicals | 18% |
| 3003 | Medicaments (not put in dosage) | 12% |
| 3004 | Medicaments (put in dosage) | 12% |
| 31 | Fertilizers | 5% |
| 33 | Essential oils, perfumes, cosmetics | 18% |
| 34 | Soap, shampoos, toothpaste | 18% |
💻 Electronics & IT Products (Chapters 84-85)
| HSN Code | Product Description | GST Rate |
|---|---|---|
| 8471 | Computers, laptops, servers | 12% |
| 8517 | Mobile phones, telephones | 12% |
| 8528 | TVs, monitors, projectors | 18% |
| 8516 | Water heaters, hair dryers | 18% |
| 8422 | Dishwashers | 18% |
| 8415 | Air conditioners | 28% |
| 8418 | Refrigerators | 28% |
👕 Textiles & Garments (Chapters 50-63)
| HSN Code | Product Description | GST Rate |
|---|---|---|
| 50-55 | Raw silk, wool, cotton, jute | 5% |
| 61 | Knitted garments | 5% / 12% |
| 62 | Woven garments | 5% / 12% |
| 64 | Footwear | 5% / 18% |
🚗 Vehicles & Auto Parts (Chapters 86-87)
| HSN Code | Product Description | GST Rate |
|---|---|---|
| 8702 | Motor vehicles for transport | 28% |
| 8703 | Cars, SUVs | 28% |
| 8708 | Auto parts and accessories | 18% |
| 8711 | Motorcycles, scooters | 28% |
Common SAC Codes for Services with GST Rates
💼 Professional & Business Services
| SAC Code | Service Description | GST Rate |
|---|---|---|
| 998311 | IT consulting, software development | 18% |
| 998312 | Website design, hosting | 18% |
| 998313 | Hardware consultancy | 18% |
| 998316 | Software support, maintenance | 18% |
| 998321 | Tax consultancy | 18% |
| 998322 | Legal services | 18% |
| 998324 | Management consulting | 18% |
| 998325 | Marketing, advertising, PR | 18% |
🎨 Creative & Media Services
| SAC Code | Service Description | GST Rate |
|---|---|---|
| 998331 | Photography, videography | 18% |
| 998332 | Graphic design, animation | 18% |
| 998333 | Content writing, translation | 18% |
| 998334 | Event management | 18% |
✈️ Travel & Transportation
| SAC Code | Service Description | GST Rate |
|---|---|---|
| 996511 | Air travel (economy) | 5% |
| 996512 | Air travel (business) | 12% |
| 996421 | Rail travel | 5% |
| 996422 | Metro travel | 0% |
| 996423 | Bus travel | 5% |
| 996424 | Taxi, cab services | 5% |
| 996431 | Goods transport by road | 5% / 12% |
📚 Education & Training
| SAC Code | Service Description | GST Rate |
|---|---|---|
| 998511 | School education | 0% |
| 998512 | Higher education (college) | 0% |
| 998513 | Vocational training | 0% |
| 998514 | Coaching, tuition classes | 18% |
🏥 Healthcare Services
| SAC Code | Service Description | GST Rate |
|---|---|---|
| 998611 | Hospital services | 0% |
| 998612 | Doctor consultation | 0% |
| 998613 | Dental services | 0% |
| 998614 | Diagnostic lab tests | 0% |
| 998615 | Ambulance services | 0% |
🏨 Hospitality Services
| SAC Code | Service Description | GST Rate |
|---|---|---|
| 996211 | Restaurant (non-AC) | 5% |
| 996212 | Restaurant (AC) | 18% |
| 996111 | Hotel room (< ₹1,000) | 0% |
| 996112 | Hotel room (₹1,000-₹2,500) | 12% |
| 996113 | Hotel room (₹2,500-₹7,500) | 18% |
| 996114 | Hotel room (> ₹7,500) | 28% |
How to Find Correct HSN/SAC Code
HSN Code Finder Tools
Use online HSN code finder tools on GST portal or CBIC website to search by product name.
CBIC Notifications
Refer to CBIC rate notifications for your industry to find correct HSN/SAC codes.
Consult GST Practitioner
Tax professionals can help identify the most appropriate codes for your products/services.
Check Competitor Invoices
Review invoices from suppliers or competitors to see which HSN/SAC codes they use.
Penalties for Wrong HSN/SAC Code
| Violation | Penalty |
|---|---|
| Wrong HSN/SAC code used negligently | ₹25,000 |
| Wrong HSN/SAC code with intent to evade tax | 100% of tax amount or ₹25,000, whichever is higher |
| Insufficient digits of HSN/SAC | ₹25,000 |
| No HSN/SAC mentioned on invoice | ₹25,000 |
Frequently Asked Questions about HSN/SAC Codes
❓ What is HSN code in GST?
HSN (Harmonized System of Nomenclature) code is a 2-8 digit code used to classify goods for GST purposes.
HSN (Harmonized System of Nomenclature) code is a 2-8 digit code used to classify goods for GST purposes.
❓ What is SAC code in GST?
SAC (Services Accounting Code) is a 6-digit code used to classify services under GST, starting with 99.
SAC (Services Accounting Code) is a 6-digit code used to classify services under GST, starting with 99.
❓ How many digits of HSN code do I need?
Turnover below ₹1.5 crore: 2 digits. ₹1.5-5 crore: 4 digits. Above ₹5 crore: 6 digits. For exports: 8 digits.
Turnover below ₹1.5 crore: 2 digits. ₹1.5-5 crore: 4 digits. Above ₹5 crore: 6 digits. For exports: 8 digits.
❓ What if I use wrong HSN code?
Penalty of up to ₹25,000. If intent to evade tax is proven, penalty can be 100% of tax amount.
Penalty of up to ₹25,000. If intent to evade tax is proven, penalty can be 100% of tax amount.
❓ Do composition dealers need HSN codes?
Yes, composition dealers must mention HSN codes on their bills of supply as per turnover limits.
Yes, composition dealers must mention HSN codes on their bills of supply as per turnover limits.
❓ Is HSN code mandatory on B2C invoices?
HSN code is mandatory on B2C invoices if the product value exceeds specified limits (varies by turnover).
HSN code is mandatory on B2C invoices if the product value exceeds specified limits (varies by turnover).