HSN/SAC Codes
Classify Your Products Like a Pro with Accurate HSN/ SAC Codes!
Classify your goods and services precisely with HSN/SAC . Stay compliant and save time ensuring accurate classification for your business. Start finding your codes now!
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Get the Right HSN/ SAC Codes for Perfect Compliance!
What is an HSN Code?
HSN code refers to the “Harmonized System of Nomenclature.” It is a globally accepted structure for the systematic classification of goods. The World Customs Organization (WCO) introduced the HSN number to standardize the classification of goods worldwide for customs and taxes. Effective from 1988, these codes are an 8-digit uniform code used to categorize 5000+ products globally. Each digit depicts an explicit categorization of the goods.
HSN numbers become crucial under the GST framework of India for businesses to classify products for appropriate tax calculations and filing. They play a vital role in streamlining the classification of goods and error-free invoicing.
How to Find Eight Digit HSN Code?
You have two options: choose a time-consuming process from the GSTN portal or take a shortcut with Munim! The choice is yours! Here’s how you can speed-up product/ service classification through Munim HSN Code Finder!
Enter the goods/ service name or related category in the search box and click enter.- You will get a list of HSN and SAC numbers for the products or services, along with the GST rate.
Enter the goods/ service name or related category in the search box and click enter.
You will get a list of HSN and SAC numbers for the products or services, along with the GST rate.Save Time and Effort with Munim’s Single Click GST HSN Code Finder right away!
How Does HSN Code Work?
There are nearly 5000 product categories or groups. These are identified by 8-digit code, which is arranged in a logical structure. These digits are defined by specific rules for uniform classification.
Harmonized System of Nomenclature (HSN) Structure
HSN numbers are identified by 8 digit structure in India. Let’s quickly check out the breakdown of this 8-digit numeric structure.
Chapter
- The first two digits of the code are known as chapter.
- They depict a wide category of goods and services under which the product falls.
- In the above image 02 represents dairy produce, natural honey, and edible animal produce.
The first two digits of the code are known as chapter.Heading
- The first four digits in the HSN code are known as heading.
- These represent a more specific category along with the chapter.
- It narrow downs the classification of the product groups.
- 0405 is the heading in the image. It identifies the product category as butter and other dairy fats derived from milk.
Subheading
- Subheading is the first six digits in the code.
- They break down the product further into sub-categories.
- 040510 in the image depicts a sub-heading that identifies the product to be Butter.
National Code
- The first four digits iThe Indian government extends the code to eight digits, known as the “National Tariff”.
- The last two digits in the HSN number identify a more clear specification of the product.
- 04051000 Classify the butter to find the correct tax slabs.
What are Services Accounting Code (SAC) in GST?
Services Accounting Code (SAC) refers to a classification system where services are identified and categorized under the Indian GST regulations. Similar to HSNs, the SAC code is a unique numeric code used to represent services. It enables a standardized categorization of services for taxation, invoicing, and compliance processes.
What is the Format of SAC Code?
The SAC code is strictly in the numeric format and is a 6-digit long code. Let’s check out the numeric representation.
1. Service Division
2. Service Group
3. Description
Why HSN/SAC Codes are Important in India?
Standardizing goods and services: HSN for goods and SAC for services.- Ensuring accurate GST application: Enabling precise taxation, invoicing, and GST return filing.
- Simplifying processes: Streamlining categorization for transactions and liability tracking.
Standardizing goods and services: HSN for goods and SAC for services.
Ensuring accurate GST application: Enabling precise taxation, invoicing, and GST return filing.
Simplifying processes: Streamlining categorization for transactions and liability tracking.- Promoting uniformity: Minimizing tax evasion through consistent tax application.
- Assisting tax authorities: Helping in audits by identifying goods and services traded.
- Supporting government insights: Enabling analysis of consumption patterns, taxation trends, and revenue-generating sectors for better policy-making and tax adjustments.
Promoting uniformity: Minimizing tax evasion through consistent tax application.
Assisting tax authorities: Helping in audits by identifying goods and services traded.
Supporting government insights: Enabling analysis of consumption patterns, taxation trends, and revenue-generating sectors for better policy-making and tax adjustments.What is the Difference between HSN and SAC Code List?
| HSN Codes | SAC Codes | |
|---|---|---|
| 1 | HSN depicts Harmonized Systems of Nomenclature. | SAC represents the Services Accounting Code. |
| 2 | It is used for the classification of goods under Indian GST laws. | It is used for classification of services under GST |
| 3 | It is a numeric structure of 6 to 8 digits. | It typically comprises 6 digit numeric values. |
| 4 | It is used globally as a part of the World Customs Organization (WCO). | It is primarily used in India for categorization of services. |
| 5 | It determines GST rates for goods. | It determines GST rates for services. |
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