HSN and SAC Codes on Invoices: How Many Digits Do You Need?
By Alphabet Technology · · 4 min read
Quick answer
HSN codes classify goods and SAC codes classify services. If your aggregate turnover in the previous year was up to ₹5 crore, show at least a 4-digit HSN on B2B invoices (optional on B2C); above ₹5 crore, show 6 digits on all invoices. SAC codes for services are 6 digits and start with 99.
Digits required
| Aggregate turnover (previous FY) | Digits on invoice |
|---|---|
| Up to ₹5 crore | 4 digits for B2B (optional for B2C) |
| Above ₹5 crore | 6 digits for all invoices |
Common SAC codes
| Service | SAC |
|---|---|
| IT design & development | 998314 |
| Advertising services | 998361 |
| Management consulting | 998311 |
| Accounting & bookkeeping | 998222 |
| Event management | 998596 |
Always confirm the code and the current GST rate for your exact item on the CBIC rate finder – rates are revised from time to time.
Save codes once
In Invoice24, star a line to save it as a service. Next time you type its name, the price, HSN/SAC and tax rate fill in by themselves.
Frequently asked questions
What happens if I use the wrong HSN code?
+
A wrong code can mean the wrong tax rate and a mismatch in returns. Correct it with a credit/debit note and revise future invoices.
Do I need HSN on a quotation?
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It isn't mandatory, but showing it helps the buyer check the tax rate before ordering.
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