Home > GST Home > GST Help Center > HSN/SAC Last Updated: Mar 12th 2021

What HSN/SAC details to be declared in GST Returns, Invoices?

GST Council revised the HSN and SAC code declaration requirement part of the GSTR-1 Return and Invoices to have better compliance and reporting. Know more about HSN/SAC Codes, Indication of such details in GST Returns and Invoices, how to report in GSTR-1, penalty for non-compliance

HSN/SAC code requirement with GST Return and Invoices

What are HSN or SAC?


HSN or HS (Harmonized Commodity Description and Coding System) is a standardized system of nomenclature of different goods developed by World Customs Organization, which is accepted globally. HSN uses 6 digits uniform codes to classify different goods. India uses eight-digit codes for more specific and precise classification

  1. HSN Code: HSN (Harmonised System of Nomenclature) is used for classifying the Goods under GST.
  2. SAC Code: SAC (Services Accounting Code) is used for classifying the Services under GST.


HSN/SAC Reporting requirement before 31st March 2021

Indication of HSN or SAC Code details in GST Returns (GSTR-1) and Invoices till 31st March 2021 are as follows

  • CBIC has notified the minimum number of HSN/SAC code that the taxpayer needs to indicate in GST returns and Invoices through Notification No 12/2017 dated 28/06/2017.
  • The Taxpayer needs to report the HSN/SAC code for each product or service they sell, depending on the turnover in the preceding financial year (eg. for FY 2020-21, FY 2019-20 turnover to be cosidered.)
S.NoAnnual Turnover in the preceding Financial YearNumber of digits of HSN/SAC Code
1Upto Rs 1.5 CroreNil
2More than Rs 1.5 Core and Less than Rs 5 Crore2
3More than Rs 5 Crores4


HSN/SAC Reporting requirement after 01st April 2021

CBIC has amended the notification 12/2017 vide notification no 78/2020 to mandate disclosure of HSN/SAC codes in GST Returns (GSTR-1) and Tax Invoices from 01st April 2021 are as follows

S.NoAnnual Turnover in the preceding financial yearNumber of digits of HSN/SAC Code
1Upto Rs 5 Crore
  • For B2B Tax Invoices - 4 digits (Mandatory)
  • For B2CS Tax Invoices - 4 digits (Optional)
2More than Rs 5 Crore6 digits (Mandatory for B2B and B2CS)


Reporting in GSTR-1

HSN/SAC codes are required to be entered in GSTR-1. Description of each item in the Invoices need not be uploaded in GSTR-1 but the HSN/SAC needs to be entered for each product and/or service.

Taxpayers who use EZTax.in Books software need to enter the HSN or SAC code in the Product Master, so that the HSN/SAC information would automatically brought in to the GSTR-1 Return based on the previous year turnover. Also refer How to create a GST ready Invoice



Penalty for Non-Compliance

  • Every Taxpayer needs to report correct HSN/SAC Code on Tax Invoices and GSTR-1.
  • Penalty of Rs 50000 ( Rs 25000 under CGST and Rs 25000 under SGST) would be levied for non-mentioning of HSN/SAC or wrong mentioning of HSN/SAC in GST Returns and Tax Invoices.

How to get help from EZTax.in

Our Tax Services

Online Income Tax Filing Time: ~7 mins
  • Comprehensive & Accurate > No limits.
  • Highly Secure > Peace of mind.
  • Maximum Deductions > Save on Taxes.
  • No more visits to Tax Consultants > Save Time & Money.
  • Real-time Tax Calculation
  • Available in both Web Browser & Mobile App

Start Now

GST Accounting Software Price: FREE for 1st year in India  refer pricing for other countries such as India, Australia, Malaysia, Nepal, Pakistan, Singapore, Sri Lanka, & UK

Easiest GST ready Accounting software

  • GST Compliant Invoicing
  • Online - Highly available
  • Quick Onboarding - Import your data from legacy
  • Personalization - Highly customized Invoicing
  • Drafts > Estimates > POs > Delivery Challans > Invoices > CR/DR Notes > RCs & All.
  • Barcode scanner Integration
  • Amazon, Flipkart Imports
  • Individual, or Bulk Payments - just a Click away
  • Multiple users can Book / Bill at the same time
  • Quick Invoicing, Auto Delivery, & Reminders
  • Multi-Channel GST returns preparation
  • Customized for Regular and Composition
  • AI Data Insights
  • AI Prioritization
  • AI Alerts
  • Expenses & Purchases
  • Real Time P & L
  • Barcode Scanner, e-Way Bill Integration
  • Excellent User Experience
  • Easy to understand language
  • Artificial Intelligence enablement
  • above all, Count on our Outstanding Client Service

Start NowLearn more
Expert CA Services Price: Rs.599 onwards

GST
  • Affordable Tax Services for Businesses, Associations, Individuals
  • GST Registration
  • GST Return Filing
  • GST Accounting
  • GST Consultation
  • Notice Handling
Income Tax
  • Income Tax Return Filing for Businesses, Associations, Individuals
  • Tax Savings
  • TDS Preparation
  • General Tax Compliance
  • Investment Advisory
  • Capital Gains Consultation
  • Tax Planning
  • Notice Handling
Virtual Accounting
  • Complete Accounting for Businesses, Associations, Individuals
  • Compliance & Accounting Portal Access for easy monitoring
  • Accounting Advisory
  • Tax Savings
  • GST, Income Tax, TDS, General Tax Compliance
  • Business Planning

Contact Now   WhatsApp Now