HSN/SAC Rate Lookup

Free Online HSN/SAC Rate List

FAQs about HSN/SAC Code

What is HSN Code?
The Harmonized Commodity Description and Coding System generally referred to as “Harmonized System of Nomenclature” or simply “HSN”. It is a multipurpose international product nomenclature developed by the World Customs Organization (WCO). It first came into effect in 1988.

How does HSN code work?
It has about 5,000 commodity groups, each identified by a six-digit code, arranged in a legal and logical structure. It is supported by well-defined rules to achieve uniform classification.

Why is HSN important?
The main purpose of HSN is to classify goods from all over the World in a systematic and logical manner. This brings in a uniform classification of goods and facilitates international trade.

HSN Worldwide
The HSN system is used by more than 200 countries and economies for reasons such as:

  • Uniform classification
  • Base for their Customs tariffs
  • Collection of international trade statistics

Over 98% of the merchandise in international trade is classified in terms of the HSN.

Understanding the HSN Code
The HSN structure contains 21 sections, with 99 Chapters, about 1,244 headings, and 5,224 subheadings.

  • Each Section is divided into Chapters. Each Chapter is divided into Headings. Each Heading is divided into Sub Headings.
  • Section and Chapter titles describe broad categories of goods, while headings and subheadings describe products in detail.

For example: HSN code for gold jewellery (unstudded) is 7113 19 10. HSN code for gold jewellery (set with pearls) is 7113 19 20. HSN code for gold jewellery (set with diamonds) is 7113 19 30. HSN code for gold jewellery (set with other precious and semi-precious stones) is 7113 19 40. GST Rate is 3% for the same.

Services Accounting Code (SAC) in GST
Like goods, services are also classified uniformly for recognition, measurement and taxation. Codes for services are called Services Accounting Code or SAC.
For example: SAC code for various services provided by a Chartered Accountant is:

  • SAC Code 998221 – Financial auditing services
  • SAC Code 998222 – Accounting and bookkeeping services
  • SAC Code 998223 – Payroll services
  • SAC Code 998231 – Corporate tax consulting and preparation services
  • SAC Code 998232 – Individual tax preparation and planning services

GST Rate is 18% for the same

In GST, all goods and services supplied in India have been classified - Goods are classified under the HSN Code and Services are classified under the SAC Code. Based on the HSN or SAC code, GST rates have been fixed in five slabs, namely 0%, 5%, 12%, 18% and 28%.
Every product under the Purview of GST has been given a unique HSN code, which is required to be quoted in GST Invoices and also a summary of the same needs to be shown in GSTR 1 on a monthly basis.
Under GST, the majority of dealers will need to adopt two-, four-, or eight-digit HSN codes for their commodities, depending on their turnover the year prior.

  • Dealers with turnover of less than Rs 1.5 crores will not be required to adopt HSN codes for their commodities.
  • Dealers with turnover between Rs 1.5 crores and Rs 5 crores shall be required to use 2 digit HSN codes for their commodities.
  • Dealers with turnover equal to Rs 5 crores and above shall be required to use 4 digit HSN codes for their commodities.
  • In the case of imports/exports, HSN codes of 8 digits shall be compulsory, as GST has to be compatible with international standards and practices.

HSN - wise summary of outward supplies

SectionsHSN Code List for
Section 1Live Animals, Animal Products
Section 2Vegetable Products
Section 3Animal or Vegetable Fats and Oils and their cleavage products, prepared edible fats, Animal or Vegetable waxes
Section 4Prepared Foodstuffs, Beverages, Spirits and Vinegar, Tobacco and Manufactured Tobacco Substitutes
Section 5Mineral Products
Section 6Product of the chemicals or allied Industries
Section 7Plastics and articles thereof, Rubber and articles thereof
Section 8Raw hides and skins, Leather, Furskins and articles thereof, saddlery and harness, travel goods, handbags and similar containers, articles of animal gut (other than silk-worm gut)
Section 9Wood and articles of wood, Wood charcoal, Cork and articles of cork, Manufacturers of straw, of Esparto or of other Plaiting Materials, Basketwork and Wickerwork
Section 10Pulp of wood or of other Fibrous Cellulosic Material, Recovered (Waste and scrap) paper or paperboard, paper and paperboard and articles thereof
Section 11Textile and textile articles
Section 12Footwear, Headgear, Umbrellas, Sun Umbrellas, Walking-sticks, seat-sticks, whips, riding-crops and parts thereof, Prepared feathers and articles made therewith, Artificial flowers, Articles of human hair
Section 13Articles of stone, plaster, cement, asbestos, mica, or similar materials, ceramic products, glass and glassware
Section 14Natural or cultured pearls, Precious or semi-precious stones, precious metals, Metal clad with precious metals, and articles thereof, Imitation Jewellery, Coins
Section 15Base Metals and articles of Base Metal
Section 16Machinery and mechanical appliances, electrical equipment, parts thereof, sound recorders and reproducers, television image and souch recorders and reproducers, and Parts and Accessories of such article
Section 17Vehicles, Aircraft, Vessels and Associated Transport Equipment
Section 18Optical, Photographic, Cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus, clocks and watches, musical instruments, parts and accessories thereof
Section 19Arms and ammunition, parts and accessories thereof
Section 20Miscellaneous Manufactured Articles
Section 21Works of art, Collectors' Pieces and antiques

What is SAC?
Similar to HSN,India also adopted SAC. SAC(Services Accounting Code) is a unified code for recognition, measurement and taxation for services.SAC has been in existence from the previous regime itself, and have been defined for each type of service by the government for the proper levy of Service Tax. The same code is expected to continue in the GST era.

What is the importance of HSN when Filing Invoice?
GST returns are completely automated, it will be hard for the dealers to upload the description of the products being supplied. Hence, HSN Codes shall be automatically picked up from the registration details of the dealer and will reduce the efforts thereby.

How to search HSN?
First narrow down to Chapter, then Section. Then select a HSN code which best describes your commodity or alternatively just write down the name of the Good/Service you are dealing with and the HSN/SAC Lookup automatically reflects the HSN/SAC code as well as the latest GST Rate applicable.

How to complain about illegality of HSN Code?
You can inform to the respective authorities [Gurgaon / Noida] know of the illegality usage of GST Number by emailing them and also call them at helpdesk@gst.gov.in | +91-124-4688999 / +91-120-4888999.

To understand more about possible GST frauds and to learn in detail how to verify if a business is GST registered, subscribe to our knowlegde center here. If you are looking for a solution to help you with your GST return filing write to us at sales@sahigst.com.