If you own startups, MSME, trading business, manufacturing unit, or service company in India, you should know correct HSN codes and SAC codes which are essential for GST compliance. Every GST invoice requires correct code for products or services. And wrong code may result in incorrect GST rates, filing errors or notice from tax department.
Many business owners are unsure which HSN SAC codes to use. Since there are thousands of codes by product or service name. Let’s see most commonly used HSN codes and SAC codes for startups, manufacturers, traders, freelancers, consultants, agencies, software companies and other businesses.
What is an HSN code?
HSN (Harmonized System of Nomenclature) is an internationally standardized 6-digit number used to classify goods for customs, taxation, and trade statistics. India follows HSN system under GST to identify products and apply correct GST rate. Businesses selling products should always mention correct HSN code on GST invoices.
For example
| Product | HSN Code |
| Mobile Phone | 8517 |
| Laptop | 8471 |
| Rice | 1006 |
| Wheat | 1001 |
| Milk | 0401 |
| Tea | 0902 |
| Coffe | 0901 |
| Iron & steel | 72 |
| Cement | 2523 |
| Paint | 3208 |
What is SAC code?
SAC (Service Accounting Code) It is a unique 6-digit numeric classification system in India to uniformly classify and tax various services under the GST (Goods and Services Tax) regime. Every service provided under GST has unique SAC code. Businesses providing services should use correct SAC code while issuing invoices.
Example:
| Services | SAC code |
| IT Services | 998314 |
| Legal Services | 998212 |
| Advertising Services | 998361 |
| Transport Services | 9965 |
| Accounting | 998222 |
| Construction | 9954 |
| Education | 9992 |
| Healthcare | 9993 |
Difference between HSN and SAC
| HSN Code | SAC Code |
| Used for Goods | Used for Services |
| Product Classification | Service Classification |
| Issued under GST | Issued under GST |
| Used by Traders & Manufacturers | Used by Service Providers |
| Usually 4, 6 or 8 Digits | Generally Starts with 99 |
Why HSN SAC codes are important for MSMEs
Using HSN and SAC codes is important for MSMEs because correct codes make GST classification accurate and help the right tax rate be applied to goods and services.
Correct GST calculation and compliance: HSN (Harmonized System of Nomenclature) codes identify goods (products), while SAC (Services Accounting Codes) identify services. Using the correct code helps MSMEs apply the correct GST rate, avoiding underpayment or overpayment of tax.
Proper invoicing: GST invoices require the relevant HSN or SAC code (depending on the business type and turnover requirements). Accurate codes make invoices legally compliant and easier for customers, suppliers, and auditors to verify.
Easier GST returns filing: HSN/SAC details are used while GST returns filings. Correct classification reduces errors in return filing and helps maintain consistent records.
Better business records and accounting: MSMEs often deal with multiple products or services. Codes help organize:
- Sales records
- Inventory tracking
- Tax reports
- Financial statements
Access to analytics and market opportunities: Product classification through HSN codes helps businesses understand to support expansion planning:
- Demand trends
- Export/import categories
- Industry comparisons
Top SAC Codes used by startups and service businesses
- 9983: Other Professional, Technical & Business Services
- 998311: Management Consulting Services
- 998312: Business Consulting Services including public relations services
- 998313: Information Technology Consulting
- 998314: IT Design & Development Services
- 998315: Hosting & Infrastructure Services
- 998316: Information technology infrastructure and network management services
- 998319: Other IT Services
- 998361: Advertising Services
- 998362: Marketing Services
- 998363: Public Relations Services
- 998365: Digital Advertising Services
- 998371: Market Research Services
- 998381: Photography Services
- 998382: Advertising and related photography services
- 998391: Specialty design services including interior design, fashion design, industrial design and other specialty design services
- 998392: Design originals
- 998399: Other Business Support Services
Top HSN codes used by MSMEs
- 8414: Electric Fans
- 8415: Air Conditioners
- 8418: Refrigerators
- 8443: Printers
- 8450: Washing Machines
- 8471: Computers & Laptops
- 8471: Tablets
- 8471: Scanners
- 8471: Keyboards
- 8471: Mouse
- 8473: Computer Parts & Accessories
- 8504: UPS
- 8504: Chargers
- 8507: Batteries
- 8507: Power Banks
- 8516: Water Heaters (Geysers)
- 8517: Mobile Phones
- 8517: Telephone Equipment
- 8518: Speakers
- 8518: Earphones & Headphones
- 8525: CCTV Cameras
- 8528: Monitors
- 8528: Television
- 8536: Electrical Switches
- 8539: LED Bulbs
- 8544: Electrical Cables
- 9405: LED Lights
Popular HSN Codes for Office Supplies
Food & Grocery Products HSN Codes
- 0401 Milk
- 0403 Curd
- 0405 Ghee
- 0405 Butter
- 0406 Cheese
- 0901 Coffee
- 0902 Tea
- 1001 Wheat
- 1005 Maize
- 1006 Rice
- 1101 Flour
- 1701 Sugar
- 1806 Chocolates
- 1905 Biscuits
- 1905 Bread
- 2201 Packaged Drinking Water
- 2202 Soft Drinks
- 2501 Salt
Textile & Garment Products HSN Codes
- 5007 Silk Fabric
- 5201 Cotton
- 5208 Cotton Fabric
- 5407 Synthetic Fabric
- 5702 Carpets
- 6109 T-Shirts
- 6110 Sweaters
- 6201 Jackets
- 6203 Trousers
- 6203 Jeans
- 6205 Shirts
- 6206 Kurtis
- 6301 Blankets
- 6302 Bed Sheets
- 6302 Towels
- 6303 Curtains
Furniture Products HSN Codes
- 9401 Office Chairs
- 9401 Sofa
- 9403 Wooden Furniture
- 9403 Steel Furniture
- 9403 Dining Tables
- 9403 Office Tables
- 9403 Cabinets
- 9404 Mattress
- 9404 Pillow
Packaging Materials HSN code
- 3919 Adhesive Tape
- 3923 Plastic Bags
- 3923 Plastic Bottles
- 3923 Bubble Wrap
- 4819 Corrugated Boxes
- 4819 Paper Bags
- 4819 Cartons
Construction Materials HSN product
- 2523 Cement
- 3208 Paint
- 3917 PVC Pipes
- 6802 Marble
- 6802 Granite
- 6901 Bricks
- 6907 Ceramic Tiles
- 7005 Glass
- 7214 Steel Bars
- 7214 TMT Bars
- 7306 Pipes (Iron & Steel)
Plastic & Rubber Products HSN product
- 3923 Plastic Containers
- 3924 Plastic Household Articles
- 4009 Rubber Tubes
- 4015 Rubber Gloves
- 4016 Rubber Mats
- 9403 Plastic Furniture
Automobile & Spare Parts HSN code
- 4011 Tyres
- 4013 Tubes
- 8409 Engine Parts
- 8507 Vehicle Batteries
- 8703 Motor Cars
- 8708 Auto Parts
- 8711 Motorcycles
- 8712 Bicycle
Medical & Healthcare Products HSN codes
Household Products HSN code
- 7321 Gas Stove
- 7323 Stainless Steel Utensils
- 7615 Pressure Cooker
- 7615 Aluminium Utensils
- 8508 Vacuum Cleaner
- 8509 Mixer Grinder
- 8516 Electric Iron
How to Find the Correct HSN Code or SAC Code
Find the correct HSN Code or SAC Code easily with the Invocreto HSN Code Finder Tool. Search by product or service name, and select the appropriate code for accurate GST invoicing and compliance. The tool helps MSMEs, traders, and businesses quickly identify product and service classifications before generating invoices.
Step 1: Open the HSN Code Search Tool
Visit the Invocreto HSN Code Finder page
Step 2: Select Whether You Need HSN or SAC Code
- Goods: Search for HSN Code
Used for physical products such as machinery, electronics, garments, food items, and other goods. - Services: Search for SAC Code
Used for services such as software, consulting, professional services, repairs, and other service activities.
Step 3: Search Using Product or Service Name
Enter simple description of your product or service in the search box. Examples: Cotton shirts, Mobile phone accessories, Steel pipes, Software development, Digital marketing, Accounting services, Consulting
Step 4: Review the Code Description Carefully
Do not select a code only because the keyword matches. For example, HSN categories may contain multiple levels, so selecting the most accurate description helps avoid incorrect GST classification.
Tips for Choosing the Right HSN/SAC Code
- Use the exact product or service description instead of broad keywords
- Compare similar search results before finalizing a code
- Keep the selected code consistent across invoices and accounting records
- Update codes if your product range or services change
- Maintain proper records for GST reporting
Conclusion
Using the correct HSN SAC code on GST invoices is an important step toward maintaining accurate tax compliance and smooth business operations. Proper classification helps businesses avoid invoice errors, ensure correct GST calculation, simplify return filing, and maintain transparent records.
For MSMEs and businesses dealing with multiple products or variations, selecting the right HSN code requires careful review of product descriptions and classifications. Confirming the applicable 8-digit HSN code before invoicing helps reduce compliance risks and ensures accurate tax reporting.
With the right tools and verification process, businesses can confidently manage GST invoicing and focus on growth while staying compliant with tax regulations.
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