GST Compliance Management

HSN & SAC Code Finder

In the GST regime, your product or service is defined by a universally recognized number: the HSN (Harmonized System of Nomenclature) code for goods, or the SAC (Service Accounting Code) for services. This single code determines your exact GST rate. Using the wrong code means charging the wrong tax—leading to rejected input tax credits, angry buyers, and severe departmental penalties.

At The Online Tax, we take the guesswork out of product classification. Our GST experts analyze the exact composition, use-case, and industry standards of your offerings to map them to the legally correct 4, 6, or 8-digit HSN/SAC code. We ensure your invoices are perfectly compliant and your business is shielded from classification disputes.

Find Your Exact Tax Code

Accurate HSN and SAC Code Classification for GST

THE LEGAL REQUIREMENTS

How Many Digits Do You Need?

The government has strictly mandated the use of HSN and SAC codes on all B2B and B2C tax invoices. The level of detail required depends entirely on your business turnover and whether you export.

Turnover-Based Rules:

Turnover Up to ₹5 Crores: You must mention a minimum of 4-digit HSN/SAC codes on all B2B tax invoices. (Optional for B2C invoices).
Turnover Above ₹5 Crores: You must mention a minimum of 6-digit HSN/SAC codes on ALL invoices, whether B2B or B2C.
Composition Dealers: Taxpayers under the composition scheme are generally exempt from mentioning HSN codes on their bill of supply.

International Trade (Imports/Exports):

8-Digit Mandatory: Regardless of your annual turnover, if you are importing goods into India or exporting goods out of India, an 8-digit HSN code is absolutely mandatory on all customs documents and GST invoices.
Specified Chemicals/Products: The government has notified a specific list of chemical and pharmaceutical products that require an 8-digit HSN code even for domestic sales.

Product Classification and Tax Rate Determination

OUR PROCESS

Precision Product Mapping

Finding the right code isn't as simple as a Google search. A single product (like "shoes") can have multiple different tax rates depending on its sale value or material. Here is how we protect you:

Deep Product Analysis

We analyze your product's raw materials, manufacturing process, and end-use to find the most accurate tariff heading.

Exact Rate Determination

We map the found HSN/SAC code to the latest GST Council notifications to ensure you charge the exact 0%, 5%, 12%, 18%, or 28% rate.

Invoice Standardization

We help you set up your billing software to automatically pull the correct codes, ensuring compliance on every invoice generated.

Dispute Resolution

If the GST department sends a notice questioning your product classification, our legal experts will draft a robust, evidence-backed reply.

CLARIFICATIONS

Frequently Asked Questions

Common doubts about product classification, SAC codes, and invoicing.

HSN (Harmonized System of Nomenclature) is an internationally accepted coding system used to classify physical Goods.

SAC (Service Accounting Code) is a system created specifically by the Indian government to classify and measure the tax rates for Services (like IT consulting, legal advice, or transportation).

Using an incorrect HSN code is considered a major compliance violation. It can result in you charging a lower tax rate than required (leading to demands for the tax difference plus 18% interest and a penalty of ₹50,000 under Section 125). It can also cause your buyer's Input Tax Credit (ITC) to be rejected by the portal.

Yes. The E-Way Bill portal is heavily integrated with the HSN system. You cannot generate a valid E-Way bill for the transportation of goods without entering at least a 4-digit or 6-digit HSN code (depending on your turnover).

If your product is highly unique or a composite good (made of multiple different items sold as a single package), it can be tricky. Our experts will apply the "General Rules for the Interpretation of Import Tariff" to determine its essential character and assign the closest, legally defensible code to prevent future disputes.

hsn code finder