What HSN and SAC codes are
HSN (Harmonized System of Nomenclature) is the international code list for goods, used in India for customs and GST. Services have their own list, SAC (Services Accounting Code), whose codes start with 99. The first two digits of an HSN code are the chapter (for example 85 electrical machinery, 72 iron and steel), the next two the heading, and further digits narrow the item down.
How many digits to print on your invoice
Rule 46 of the CGST Rules requires the HSN code on a tax invoice, and Notification 78/2020-Central Tax sets the number of digits by your aggregate turnover in the previous financial year:
| Aggregate turnover (previous FY) | HSN digits on invoices |
|---|---|
| Up to ₹5 crore | 4 digits on B2B invoices (optional on B2C) |
| Above ₹5 crore | 6 digits on all invoices |
Since the May 2025 return period, Table 12 of GSTR-1 also takes HSN from a dropdown with separate B2B and B2C parts, so the code on your bill has to be one the portal knows.
GST rates after 22 September 2025
From 22 September 2025 the rate schedules were replaced by Notification 9/2025-Central Tax (Rate), dated 17 September 2025. Most goods moved to two main slabs, 5% and 18%, with 40% for a short list of demerit goods, and special rates such as 0.25% and 3% for a few items. The rate depends on the code and sometimes on the description in the schedule, so one HSN can carry two rates. This finder shows each schedule entry separately and names the notification, schedule and serial number, so you can read the entry yourself before you bill. Goods that are not specified in any schedule fall under the residual entry, Schedule II S.No. 639 (18%); exempt goods come from Notification 10/2025-Central Tax (Rate) and show as 0%.
How to search
- Type the code, or the first 4 digits, to see the code and everything under it. Typing a long code also shows its parent headings.
- Or type words from the description, such as copper wire or steel bars. Every word must appear; the best matches come first.
- Copy the code with one click and put it in your item master, so every bill uses the same code and rate.
Inside Moharbill
Items in Moharbill carry their HSN and GST rate from the same date-effective rate list, so a bill dated before 22 September 2025 keeps the old rate and a new bill gets the new one. The HSN summary for GSTR-1 Table 12 is built from your bills with the B2B and B2C split.
Rules as read on 17-10-2026. Check with your CA before relying on them for a filing.
