The Harmonized System of Nomenclature (HSN) and the Service Accounting Code (SAC) are coding systems used for the classification of goods and services, respectively, under the Goods and Services Tax (GST) regime in India. The HSN codes are used for goods, while the SAC codes are used for services. These codes help in standardizing the classification and taxation of products and services. Here is an overview of HSN and SAC codes:
HSN (Harmonized System of Nomenclature) Code:
- Purpose:
- HSN codes are used to classify goods for taxation purposes under GST.
- Structure:
- The HSN code is a 6 to 8 digit code, where the first 2 digits represent the chapter, the next 2 digits represent the heading, and the last 2 digits represent the sub-heading.
- Examples:
- – HSN Code for “Rice” is 1006.
- HSN Code for “Televisions” is 8528.
- Usage:
- HSN codes are mentioned on invoices and are used for filing GST returns.
SAC (Service Accounting Code) Code:
- Purpose:
- SAC codes are used to classify services for taxation purposes under GST.
- Structure:
- The SAC code is a 6-digit code that helps in identifying the type of service provided.
- Examples:
- – SAC Code for “Architectural Services” is 998311.
- SAC Code for “Legal Consultancy Services” is 998321.
- Usage:
- SAC codes are used on invoices and are essential for filing GST returns for service providers.
Complete Lists:
The complete lists of HSN codes and SAC codes are extensive and cover a wide range of products and services. They are regularly updated by the GST authorities. You can find the complete and up-to-date lists on the official GST portal in India (https://www.gst.gov.in/).
To access the lists:
- Visit the GST portal.
- Navigate to Services > User Services > Search HSN/SAC Code.
- You can then search for specific codes or browse through the complete lists.
For detailed and specific information, it’s recommended to refer to the official GST portal or consult with a tax professional. The lists are comprehensive and subject to periodic updates, and it’s essential to use the latest information for accurate classification and compliance.
