HSN Code
HSN (Harmonized System of Nomenclature) is an internationally standardized system of codes used to classify traded goods for GST and customs purposes.
HSN stands for Harmonized System of Nomenclature — a globally recognized coding system, developed by the World Customs Organization, used to classify physical goods for taxation and international trade.
In India’s GST system, HSN codes are used for goods, while SAC (Services Accounting Code) is used for services. Businesses above a certain turnover threshold are required to mention HSN codes on their invoices.
Most freelancers and service-based businesses will use SAC codes rather than HSN codes, since they’re billing for services rather than selling physical products — but agencies that also sell goods (e.g. branded merchandise) may need both.
Written by the InvoicePilot Team.