What are SAC code and hsn code?

It is a multipurpose worldwide item terminology created by the world’s customs organization. It is an international product nomenclature. The basic purpose of SAC Code and hsn code is to ensure that the GST invoice practices are in tune with the international product nomenclature. Currently, the HSN codes are used only for customs and central excise classifications. But now the HSN code is also being used for the classification in GST. This a new thing for the traders dealing in India.

Import export data

Why is it required

Every business is required to provide the details in which product and goods they are dealing with. These details are required along with the HSN codes of the goods as wells the services. The system will automatically pick up the tax rate under the GST, based on these SAC codes and hsn codes. Thus it is very important to give the accurate details of the code at the time of enrolment and registration in GST, so as not to face any issue at customs. SAC code and hsn Code are to be used for goods as well as services. There is no SAC for services in GST, which was being used earlier in the service tax formats. According to rule 46 of the final CGST released by the Government on 2nd July 2017. The invoice rule state that the invoice must contain HSN for goods or services. The word SAC for services, that were used in the draft invoice rules have been omitted under the final set of rules realized by the government. Thus only HSN codes will be used for the services as well as the services.

Understand the digits of HSN Code –

  • IT is a combination of sections, chapters, headings, and sub-headings
  • The SAC code and hsn code structure contains 21 sections, with 99 chapters about 1244 headings and 5224 sub-headings.
  • Each section is the collection of the various chapters, Sections represents a broader class of goods, and chapter represents a particular class of goods.
  • Each chapter is further divided into various headings depending upon the different types of goods belonging to the same class.
  • Each heading contains products that are ultimately assigned an SAC code and hsn code.

India imports data

Is it mandatory :

Three types of SAC code finder  the dealers can use. These are 2- digit, 4-digit, 8-digit. HSN codes of the commodities and their use depend on the annual turnover of the dealer in the previous financial year.

According to the law, dealers with an annual turnover of fewer than 1.5 crores are not required to HSN codes while generating invoices or filing returns. Where the dealers whose annual turnover is between 1.5 crores to 5 crores need to use the right 2 digits HSN code while generating the invoice or filing the return and the one whose turnover is 5 crore and above 5 crores must use 4-digit HSN codes. In the case of import and export, the HSN code of eight-digit should be there along with the detailed information of the products and goods. Therefore the use of precise and correct HSN code is important.

SAC Code is of 8-digit code. It is only for services. As any fracture in India is providing services globally that can be industrial-based or IT-based, their bills and invoices must contain SAC code and hsn code  along with the complete information of the services being provided

HSN/SAC Code finder

We have come to know all about , SAC code and hsn code but there is a question that always arises that where we will find that code. Which portal or any Government authority is working as a SAC Code finder. Here the answer is yes, one can easily get these pieces of information from the internet. But it is difficult to find the complete set of information from a single portal. So, there are some professional websites, which are working specifically in providing data related to import-export, customs, and also HSN/SAC codes of different products. Being a searcher you can create these sites as n SAC Code finder and hence grab all the information needed.

One of those sites is https://www.seair.co.in/ . This belongs to Seair Eximz Solutions providing information related to business aspects. Finding exporters and importers for you and also help in clearing the customs by giving the complete details of various codes that have to be mentioned on the invoices.

So you are just one click away. Click on the site and get informed fully.

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