What is HSN and SAC CODE? Full Form of HSN and SAC Code

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(Last Updated On: June 15, 2018)

What is HSN? Full form of HSN Code? What is the use of HSN CODE?

HSN stands for Harmonized System Nomenclature. HSN code is used for classifying the goods and has been mandated for suppliers to mention the code in the invoices upto certain digits based on their turnover. When preparing Tax Invoice for GST, the HSN number must be mentioned on GST invoice. All products under the same HSN code will have the same rate of GST. These codes are uniform throughout the country and also in sync with the global classifications. This greatly reduces chances of errors made while doing inter-state trades as previously, every state had it’s own code for each product (for purchase and sale of the product).

What is SAC Code?

GST covers both goods and services. So, there are codes to identify services too. They are called Services Accounting Codes (SAC).

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