HSN vs SAC
HSN (Harmonised System of Nomenclature) classifies goods. SAC (Services Accounting Code) classifies services. Correct codes support rate determination and e-invoicing / return reporting.
HSN / SAC codes
Classification codes for goods and services on GST invoices.
Digits on invoices
The number of HSN digits required on tax invoices depends on aggregate turnover slabs notified by the Government. Higher turnover generally means more digits. Confirm the current table before printing invoice templates.
Rate linkage
GST rates are notified against HSN/SAC entries (and descriptions). Misclassification can cause short/excess tax and notices.
Related: Invoicing · E-invoice · Returns
This material is for general information. It is not a legal opinion. Verify due dates and rates on the GST portal and CBIC notifications before acting.