{"id":53405,"date":"2023-03-15T12:06:07","date_gmt":"2023-03-15T06:36:07","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=53405"},"modified":"2024-05-10T18:57:38","modified_gmt":"2024-05-10T13:27:38","slug":"harmonized-system-of-nomenclature-and-service-accounting-codes","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/harmonized-system-of-nomenclature-and-service-accounting-codes\/","title":{"rendered":"What Is Harmonized System Of Nomenclature (HSN) And The Service Accounting Codes (SAC)?"},"content":{"rendered":"\n<p>The Harmonized System of\nNomenclature (HSN) and the Service Accounting Codes (SAC) are being used to categories\nall of the goods and services that will be utilized in India&#8217;s GST. This will\nassist to reduce the number of obstacles that exist in the way of international\ncommerce. It is simple to identify the goods and services offered thanks to the\nusage of these HSN and SAC codes in billing and record-keeping.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/harmonized-system-of-nomenclature-and-service-accounting-codes\/#What_Is_The_HSN_Code\" >What Is The HSN Code?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/harmonized-system-of-nomenclature-and-service-accounting-codes\/#Harmonized_System_of_Nomenclature_Code_Applicability_Requirements\" >Harmonized\nSystem of Nomenclature Code Applicability Requirements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/harmonized-system-of-nomenclature-and-service-accounting-codes\/#Chapter_Wise_Distribution_of_Goods_and_Services_for_Usage_of_HSN_Codes\" >Chapter Wise Distribution of\nGoods and Services for Usage of HSN Codes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/harmonized-system-of-nomenclature-and-service-accounting-codes\/#What_Is_The_GST_SAC_Code\" >What Is The GST SAC Code?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/harmonized-system-of-nomenclature-and-service-accounting-codes\/#What_Is_The_SAC_Number\" >What Is The SAC Number?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/harmonized-system-of-nomenclature-and-service-accounting-codes\/#SAC_Code_for_GST_What_Does_That_Mean\" >SAC Code for GST: What Does\nThat Mean?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/harmonized-system-of-nomenclature-and-service-accounting-codes\/#Difference_between_Harmonized_System_of_Nomenclature_and_Service_Accounting_Codes_Codes\" >Difference between\nHarmonized System of Nomenclature and Service Accounting Codes Codes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/harmonized-system-of-nomenclature-and-service-accounting-codes\/#Is_It_Required_To_Include_The_SAC_Code_On_The_Invoice\" >Is It Required To Include The\nSAC Code On The Invoice?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/corpbiz.io\/learning\/harmonized-system-of-nomenclature-and-service-accounting-codes\/#In_Which_Chapter_Of_The_HSN_Module_SAC_Code_May_Be_Found\" >In Which Chapter Of\nThe HSN Module SAC Code May Be Found?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/corpbiz.io\/learning\/harmonized-system-of-nomenclature-and-service-accounting-codes\/#Why_Is_It_Necessary_for_Businesses_to_Use_HSN_and_SAC_Codes\" >Why Is It Necessary for\nBusinesses to Use HSN and SAC Codes?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/corpbiz.io\/learning\/harmonized-system-of-nomenclature-and-service-accounting-codes\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_The_HSN_Code\"><\/span>What Is The HSN Code?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Harmonized System of\nNomenclature is abbreviated as <strong><a class=\"text-primary\" href=\"https:\/\/corpbiz.io\/learning\/hsn-code-chapter-wise-code-list-and-section-wise-code-list\/\">HSN code<\/a><\/strong>. With the goal of standardizing the\ncategorization of goods all across the world, the World Customs Organization\n(WCO) first developed a unique code for every good as a multifunctional\nworldwide product nomenclature. The usage of HSN codes is widespread. In order\nto categorize goods for Customs and Central Excise tax, HSN codes were first\nused in India in 1986. Customs HSN codes are used on GST invoices.<\/p>\n\n\n\n<p>The first digit of the Harmonized\nSystem of Nomenclature codes was always a six-digit number. The officials in\ncharge of customs and central excise added two extra digits so that the total\ncould be read more easily. As result, 8-digit HSN codes are currently in use.\nThe Harmonized System of Nomenclature code is a predetermined eight-digit\nnumber. GST chapter number is the first set of two numbers. Chapter headers are\nthe following two digits. The following two digits indicate a subsection, while\nthe last two denote an even more precise subheading.<\/p>\n\n\n\n<p>Harmonized System of Nomenclature\ncodes are used inside the GST system to make GST a global standard. 99\nchapters, 1,244 headers, and 5,224 subheadings make up the 21 components that\nmake up HSN codes in general.<\/p>\n\n\n\n<p>Each section number is then broken\ninto chapters, which are then further divided by headers and subheadings. As\ncompared to the sections and chapters, the titles and subheadings provide a\nsignificant amount of additional information on the product in question.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Harmonized_System_of_Nomenclature_Code_Applicability_Requirements\"><\/span>Harmonized\nSystem of Nomenclature Code Applicability Requirements<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol>\n<li>For small taxpayers, Harmonized\nSystem of Nomenclature codes are not needed if their yearly revenue was less\nthan Rs 1. 5 crores in the last fiscal year.<\/li>\n\n\n\n<li>Use just the first two digits of the\nHSN code for sales between Rs 1.50 crore and Rs 5 crore.<\/li>\n\n\n\n<li>HSN code should be used with 6\ndigits and, if required, 8 digits for turnovers more than Rs 5 crore.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Chapter_Wise_Distribution_of_Goods_and_Services_for_Usage_of_HSN_Codes\"><\/span>Chapter Wise Distribution of\nGoods and Services for Usage of HSN Codes<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol>\n<li>Chapter 1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Live Animals and poultry<\/li>\n\n\n\n<li>Chapter 2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;Animal\nMeat and edible offal&#8217;s<\/li>\n\n\n\n<li>Chapter 3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fish, fillets and other aquatic\nanimals&#8217; meat<\/li>\n\n\n\n<li>Chapter 4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Honey, Eggs and Dairy Products<\/li>\n\n\n\n<li>Chapter 5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inedible animal products\n(unspecified)<\/li>\n\n\n\n<li>Chapter 6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Flowers, Live trees and plants<\/li>\n\n\n\n<li>Chapter 7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vegetables<\/li>\n\n\n\n<li>Chapter 8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fruits<\/li>\n\n\n\n<li>Chapter 9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tea, coffee, spices<\/li>\n\n\n\n<li>Chapter 10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cereals and Grains<\/li>\n\n\n\n<li>Chapter 11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Milling Industry Products<\/li>\n\n\n\n<li>Chapter 12&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Medicinal Plants, seeds and fruits<\/li>\n\n\n\n<li>Chapter 13&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lac, Gums, Resins, vegetable SAP and\nother extracts<\/li>\n\n\n\n<li>Chapter 14&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vegetable products and materials\n(unspecified)<\/li>\n\n\n\n<li>Chapter 15&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Oils, Fats, Vegetable and Animal\nproducts&nbsp; <\/li>\n\n\n\n<li>Chapter 16&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fish and aquatic vertebrates&#8217; meat\n(Prepared\/Preserved)<\/li>\n\n\n\n<li>Chapter 17&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sugar, sugar confectionery and\nbubble gums<\/li>\n\n\n\n<li>Chapter 18&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cocoa and Cocoa products<\/li>\n\n\n\n<li>Chapter 19&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pastry, pizza, bread, waffles<\/li>\n\n\n\n<li>Chapter 20&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fruits, Juices, Jams and Jellies<\/li>\n\n\n\n<li>Chapter 21&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tea, coffee and other edible preparations<\/li>\n\n\n\n<li>Chapter 22&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-alcoholic beverages, Spirit and\nVinegar<\/li>\n\n\n\n<li>Chapter 23&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residual starch products, meals, and\npellets<\/li>\n\n\n\n<li>Chapter 24&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tobacco and tobacco products<\/li>\n\n\n\n<li>Chapter 25&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Salts and Marbles<\/li>\n\n\n\n<li>Chapter 26&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mineral ores and concentrates<\/li>\n\n\n\n<li>Chapter 27&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Coal, Petroleum and other fossil\nfuels<\/li>\n\n\n\n<li>Chapter 28&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gases and Inorganic Chemicals<\/li>\n\n\n\n<li>Chapter 29&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hydrocarbons<\/li>\n\n\n\n<li>Chapter 30&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Blood and Pharma products<\/li>\n\n\n\n<li>Chapter 31&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fertilizers and unspecified products<\/li>\n\n\n\n<li>Chapter 32&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Colouring and Tanning products<\/li>\n\n\n\n<li>Chapter 33&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cosmetics and oils<\/li>\n\n\n\n<li>Chapter 34&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Soaps and waxes<\/li>\n\n\n\n<li>Chapter 35&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Glues and Enzymes<\/li>\n\n\n\n<li>Chapter 36&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Industrial explosives and fireworks<\/li>\n\n\n\n<li>Chapter 37&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Photographic and cinematographic\ngoods<\/li>\n\n\n\n<li>Chapter 38&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chemicals and clinical wastes<\/li>\n\n\n\n<li>Chapter 39&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Plastic products<\/li>\n\n\n\n<li>Chapter 40&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Rubber and rubber products<\/li>\n\n\n\n<li>Chapter 41&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Skins and rawhides<\/li>\n\n\n\n<li>Chapter 42&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Leather products: Bags, wallets, and\nhandbags<\/li>\n\n\n\n<li>Chapter 43&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Raw and artificial fur products<\/li>\n\n\n\n<li>Chapter 44&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Wood products and Wood charcoal<\/li>\n\n\n\n<li>Chapter 45&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Natural and Shuttlecock Cork<\/li>\n\n\n\n<li>Chapter 46&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basket ware, of esparto or of other\nplaiting materials; wickerwork and manufacturers of Straw<\/li>\n\n\n\n<li>Chapter 47&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Wood Pulp<\/li>\n\n\n\n<li>Chapter 48&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paper, Paperboard, Newsprint<\/li>\n\n\n\n<li>Chapter 49&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Printed Books, Newspapers and Postal\ngoods<\/li>\n\n\n\n<li>Chapter 50&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Silk<\/li>\n\n\n\n<li>Chapter 51&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fine, wool or coarse animal hair;\nwoven fabric and horse hair yarn<\/li>\n\n\n\n<li>Chapter 52&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cotton<\/li>\n\n\n\n<li>Chapter 53&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; paper yarn and woven fabrics of\npaper yarn and other vegetable textile fibers<\/li>\n\n\n\n<li>Chapter 54&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Man-made filaments<\/li>\n\n\n\n<li>Chapter 55&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Man-made staple fibers<\/li>\n\n\n\n<li>Chapter 56&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cables, ropes, felt and nonwovens,\ncordage, wadding; special yarns; twine and articles<\/li>\n\n\n\n<li>Chapter 57&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Carpets and other textile floor\ncoverings<\/li>\n\n\n\n<li>Chapter 58&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fabrics of tufted textile, lace;\ntapestries, trimmings; embroidery<\/li>\n\n\n\n<li>Chapter 59&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Coated and laminated textile\nfabrics, special woven fabrics,<\/li>\n\n\n\n<li>Chapter 60&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Knitted or crocheted fabrics<\/li>\n\n\n\n<li>Chapter 61&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accessories of clothing knitted or\ncrocheted and articles of apparel<\/li>\n\n\n\n<li>Chapter 62&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Clothing accessories not knitted or\ncrocheted and articles of apparel<\/li>\n\n\n\n<li>Chapter 63&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other textile articles, sets, worn\nclothing and rags,worn textile articles<\/li>\n\n\n\n<li>Chapter 64&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Footwear, gaiters, and parts of such\narticles<\/li>\n\n\n\n<li>Chapter 65&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Headgear parts thereof<\/li>\n\n\n\n<li>Chapter 66&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Umbrellas, walking stick and\naccessories<\/li>\n\n\n\n<li>Chapter 67&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Wigs, artificial flowers, false\nbeards<\/li>\n\n\n\n<li>Chapter 68&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cement, Plaster, mica and construction\nmaterials<\/li>\n\n\n\n<li>Chapter 69&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bricks and ceramic products<\/li>\n\n\n\n<li>Chapter 70&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Glass and glassware products<\/li>\n\n\n\n<li>Chapter 71&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gold, silver, diamond, pearls and\nother precious metals<\/li>\n\n\n\n<li>Chapter 72&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Iron, steel, Iron rods and non-alloy\nproducts&nbsp; <\/li>\n\n\n\n<li>Chapter 73&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Railway tracks, iron tube,\nContainers, nails, needles and sanitary wares<\/li>\n\n\n\n<li>Chapter 74&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Copper and copper alloy products<\/li>\n\n\n\n<li>Chapter 75&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nickel and nickel alloy products<\/li>\n\n\n\n<li>Chapter 76&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Aluminum<\/li>\n\n\n\n<li>Chapter 77&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Reserved for possible future use)<\/li>\n\n\n\n<li>Chapter 78&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lead, lead foils and sheets<\/li>\n\n\n\n<li>Chapter 79&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Zinc bars, Zinc dust and sheets<\/li>\n\n\n\n<li>Chapter 80&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tin, tin bars and profiles<\/li>\n\n\n\n<li>Chapter 81&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cobalt, Magnesium, Bismuth and other\nbase metals<\/li>\n\n\n\n<li>Chapter 82&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Agricultural tools, cutlery, razors\nand knives<\/li>\n\n\n\n<li>Chapter 83&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Padlocks, bells, safe deposit\nlockers and base metal products<\/li>\n\n\n\n<li>Chapter 84&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Industrial tools and machinery<\/li>\n\n\n\n<li>Chapter 85&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Electrical and electronic products<\/li>\n\n\n\n<li>Chapter 86&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Railway machinery and locomotives<\/li>\n\n\n\n<li>Chapter 87&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Motor vehicles<\/li>\n\n\n\n<li>Chapter 88&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Aircraft, satellites, parachutes<\/li>\n\n\n\n<li>Chapter 89&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Boats, ships, cargo vessels<\/li>\n\n\n\n<li>Chapter 90&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Artificial organs, medical\nequipment, monitoring systems, photographic, cinematographic accessories, lens <\/li>\n\n\n\n<li>Chapter 91&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Watches and clock<\/li>\n\n\n\n<li>Chapter 92&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All Musical Instruments<\/li>\n\n\n\n<li>Chapter 93&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Arms and Military weapons<\/li>\n\n\n\n<li>Chapter 94&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lighting, furniture and household\nproducts<\/li>\n\n\n\n<li>Chapter 95&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Electronic toys, sports goods and\ngaming consoles<\/li>\n\n\n\n<li>Chapter 96&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pens, pencils, educational\nequipment&#8217;s and smoking pipes<\/li>\n\n\n\n<li>Chapter 97&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Arts and Antiques<\/li>\n\n\n\n<li>Chapter 98&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Passenger baggage, laboratory\nchemical and project imports<\/li>\n\n\n\n<li>Chapter 99&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Services<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_The_GST_SAC_Code\"><\/span>What Is The GST SAC Code?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The SAC code is an abbreviation for\nthe Accounting Code for Services, which was published in 2005. All services\nprovided inside India are covered by it. In India, the identification,\ncategorization, measurement, and determination of whether GST applies to\nservices are all done using the SAC code system.<\/p>\n\n\n\n<p>Indian goods are identified by the\nHarmonized System of Nomenclature (HSN) code. The multifunctional nomenclature\ncode, which serves as the basis for the HSN code, is used by the World Customs\nOrganization (WCO) to categories goods globally in a consistent manner. The UN\nCentral Product Classification serves as the foundation for the SAC code\nsystem, however (UNCPC). Yet, the CBIC has altered it such that it is\napplicable to the Indian setting.<\/p>\n\n\n\n<p>The notes of the UNCPC system serve\nas the basis for the explanations provided for the categorization of services\nin India. The committee that was constituted to implement the SAC system in\nIndia also suggested a number of changes to the code as well as its notes.<\/p>\n\n\n\n<p>The SAC code establishes the GST\nprogram&#8217;s tax rates, which may range from 0% to 28% on services. Any services\nthat are not on the SAC list or that have not been given a SAC code will,\nnevertheless, be automatically assessed an 18% GST fee.<\/p>\n\n\n\n<p>The government may analyze GST\nrevenue collected for each service by looking at the related SAC code since\ndifferent SAC codes are assigned to different services.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_The_SAC_Number\"><\/span>What Is The SAC Number?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Six numbers make up a GST SAC code.\nAll SAC codes start with 99 since services are authorized under chapter 99. The\nkind of service is indicated by the remaining four numbers. <\/p>\n\n\n\n<p>For general construction services of\nmulti-story residential buildings, single-family houses, or multi-dwellings,\nfor instance, use SAC code 776512.<\/p>\n\n\n\n<p>Here, Chapter, which in this context\nrefers to &#8220;services,&#8221; is denoted by the SAC code 77.<\/p>\n\n\n\n<p>In this particular instance,\n&#8220;construction services&#8221; serves as the &#8220;header&#8221; of the\nprincipal service category represented by the number 65.<\/p>\n\n\n\n<p>For the principal services\ndistinguishing characteristics in this instance, &#8220;general construction\nservices of structures&#8221; 12 serve as the &#8220;service code.&#8221;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"SAC_Code_for_GST_What_Does_That_Mean\"><\/span>SAC Code for GST: What Does\nThat Mean? <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are a variety of applications\nfor which SAC codes may be used, including but not limited to:<\/p>\n\n\n\n<ol>\n<li>It is simple to differentiate\nbetween the various services since each one has a specific code allocated to\nit.<\/li>\n\n\n\n<li>For the services they provide, they\nassist GST filers in determining the appropriate GST rate.<\/li>\n\n\n\n<li>GST filers must provide these SAC\ncodes while registering on the <strong>GST portal<\/strong><sup><a class=\"text-primary\" href=\"https:\/\/www.gst.gov.in\/\"><strong>[1]<\/strong><\/a><\/sup>, on their invoices, and in <strong><a class=\"text-primary\" href=\"https:\/\/corpbiz.io\/gst-return-filing\">GST filings<\/a><\/strong>.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Difference_between_Harmonized_System_of_Nomenclature_and_Service_Accounting_Codes_Codes\"><\/span>Difference between\nHarmonized System of Nomenclature and Service Accounting Codes Codes<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Although SAC code is specifically\nfor services, Harmonized System of Nomenclature code and SAC code are used to\nclassify goods. The number of digits used in the code is another difference\nbetween the two; for instance, an HSN number has eight digits, but a SAC number\nonly has six.<\/p>\n\n\n\n<p>GST and SAC codes for different service:<\/p>\n\n\n\n<p>For each of the SAC Codes&#8217; listed\nservices, GST rates are provided. Understanding SAC codes is essential. On this\nwebsite, you may find out more about GST rates and SAC Codes for different\nservices.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Is_It_Required_To_Include_The_SAC_Code_On_The_Invoice\"><\/span>Is It Required To Include The\nSAC Code On The Invoice?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>While submitting GST Returns and\ncreating invoices, service providers&#8217; SAC codes must be utilised. The following\nis a summary of the requirements that must be met in order to include the SAC\ncode in the GST R file. I If a company&#8217;s annual revenue is less than 1.5 Crores\nINR, the SAC code is not required. (ii) In order to qualify for a SAC code, a\ncompany&#8217;s annual revenue must be more than 5 Crore INR.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"In_Which_Chapter_Of_The_HSN_Module_SAC_Code_May_Be_Found\"><\/span>In Which Chapter Of\nThe HSN Module SAC Code May Be Found?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li>Identification of the various service categories under SAC\ncode is aided by Chapter 99 of the HSN module.<\/li>\n\n\n\n<li>GST regulations apply to both HSN and SAC.<\/li>\n\n\n\n<li>HSN and SAC codes are used by commercial enterprises.\nDepending on the requirements specified below, they must adopt 2-digit,\n4-digit, or 8-digit HSN\/SAC codes.<\/li>\n\n\n\n<li>Small taxpayers having yearly sales of up to Rs 5 crores in\nthe previous fiscal year are exempt from the need that the HSN or SAC code be\nincluded on tax invoices.<\/li>\n\n\n\n<li>The first two digits of the HSN\/SAC code are sufficient for\ntaxpayers whose income is more than Rs 1. 5 crore but less than Rs. 5 crore.<\/li>\n\n\n\n<li>A four-digit HSN\/SAC code must be provided by taxpayers\nwhose annual income exceeds Rs 5 crore.<\/li>\n\n\n\n<li>The taxpayer is required to use 8-digit HSN\/SAC codes for\nbusiness transactions in import\/export and international trade.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_Is_It_Necessary_for_Businesses_to_Use_HSN_and_SAC_Codes\"><\/span>Why Is It Necessary for\nBusinesses to Use HSN and SAC Codes?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li>Businesses may determine the GST applicable rates for\ncertain goods and services by using the HSN\/SAC codes.<\/li>\n\n\n\n<li>You are required to submit these details in order to\nregister.<\/li>\n\n\n\n<li>Among the large selection of goods and services that are\navailable, these codes assist in identifying specific goods and services.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Harmonized System of Nomenclature codes are only intended for use with goods and services, as opposed to SAC codes, which are only intended for use with services. The other things that make them apart are the total amount of digits in their code and the significance of those digits. In contrast to the SAC Code, which only contains six digits, the Harmonized System of Nomenclature Code has eight.<\/p>\n\n\n\n<p><strong>Also Read<\/strong>: <br><a href=\"https:\/\/corpbiz.io\/learning\/gst-compliance-checklist\/\">GST Compliance Checklist- All You Need To Know\n<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Harmonized System of Nomenclature (HSN) and the Service Accounting Codes (SAC) are being used to categories all of the goods and services that will be utilized in India&#8217;s GST. This will assist to reduce the number of obstacles that exist in the way of international commerce. It is simple to identify the goods and [&hellip;]<\/p>\n","protected":false},"author":51,"featured_media":53406,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[16],"tags":[3233],"acf":{"service_id":"96"},"authorName":"Aditee Arya","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2023\/01\/MicrosoftTeams-image-51-1.jpg","authorDescription":"Aditee is a legal researcher and writer. She has completed her graduation in BBALLB from IP University, New Delhi. She has a keen interest in insolvency and bankruptcy law and the companies Act. She likes to watch a lot of movies and series in her free time and hang around with her friends and travel across.","postViews":3156,"readingTime":8,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/53405"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/51"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=53405"}],"version-history":[{"count":3,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/53405\/revisions"}],"predecessor-version":[{"id":63957,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/53405\/revisions\/63957"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/53406"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=53405"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=53405"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=53405"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}