Loading
HSN codes classify goods under an international system; SAC codes classify services. Both appear on GST invoices and determine which rate applies.
How many digits you must show depends on turnover, and those requirements have changed over time. Confirm the current position rather than assuming.
Because the code drives the rate. A wrong code means a wrong rate on every invoice for that item until somebody notices — a systematic error rather than an isolated one.
And it is not always obvious. Composite items, bundled services and anything at the boundary between goods and services are genuinely difficult, and reasonable people disagree.
It depends on turnover, and the requirement has changed. Confirm the current rule.
Take advice. Choosing the code with the lower rate is the expensive approach.
On the item record, so every invoice inherits it consistently.
Half an hour with your own data usually saves reading three of these. The guides will still be here afterwards.