HSN/SAC Codes Settings
HSN and SAC codes are the statutory classification codes required for GST compliance in India. HSN covers goods, SAC covers services, and both identify what is being sold so it is taxed at the correct rate. This configuration is for businesses operating under Indian GST.
Where to find it
Go to Taxes Module > Settings > HSN/SAC Codes.
HSN/SAC Codes Inquiry List
| Column | Description |
|---|---|
| Code | The 4, 6 or 8-digit code — HSN for goods, SAC for services. |
| Description | A short name for the category, such as "IT Consulting Services" or "Steel Bolts". |
| Item Tax Type | The tax category linked to the code, which sets the GST percentage applied on sale. |
Adding or Updating HSN/SAC Codes
| Field | Description |
|---|---|
| Code | The official HSN or SAC code. Use the number of digits your turnover requires under GST rules. |
| Description | A clear description, so whoever sets up a new item can see they have the right code. |
| Item Tax Type | The default rate. Linking it to the code here is what removes manual entry errors later. |
Integration with Item Master
This is a set-and-forget foundation for your inventory.
| Step | What happens |
|---|---|
| Automatic link | Creating an item or service, you select its HSN/SAC code. |
| Pre-filled data | The system pulls the associated item tax type across, so sales invoices always carry the legally required GST rate for that product. |
Set the code up before the items, not after. A code added later has to be applied to every existing item by hand, and any invoice raised in the meantime carries whatever rate the item defaulted to.
Management Tools
| Tool | What it does |
|---|---|
| Add New | Opens an entry row for a new classification as your product line grows. |
| Edit | Updates a description or the linked tax type. |
| Delete | Blocked while items reference the code. |
Important Note
The number of digits required depends on your turnover under GST rules. Getting it wrong is a compliance issue rather than a system one — the system will store whatever you enter.
Related pages
- Item Tax Types — the rates these link to
- New Item — where a code is selected
- TDS and TCS Settings — the other Indian tax setup