Confused about HSN and SAC codes? Here is a complete guide for freelancers on what codes to use on your invoices.
· Freelancing · 4 min read · Updated
What Are HSN and SAC Codes?
- HSN (Harmonized System of Nomenclature): Used for goods/products
- SAC (Services Accounting Code): Used for services
These codes are mandatory on GST invoices and help classify your supplies for tax purposes.
Common SAC Codes for Freelancers
| Service | SAC Code | Description |
|---|---|---|
| IT Services | 998314 | IT design and development |
| Web Development | 998314 | Software development services |
| Graphic Design | 998319 | Other design services |
| Consulting | 998313 | Management consulting |
| Content Writing | 998314 | IT services |
| Photography | 998319 | Other professional services |
| Tutoring | 999219 | Educational services |
Do You Need an HSN Code?
If you are selling goods, yes. For services, use SAC codes. If your annual turnover is below ₹1.5 crore, you may not need to show HSN codes on your invoices, but it is good practice to include them.
How to Find Your Code
- Search the HSN and SAC code list for the closest match
- Use the closest matching code from the SAC list
- When in doubt, use 998314 for IT/tech services or 998319 for other professional services
Invoice Mitra Makes It Easy
Invoice Mitra lets you add SAC codes to your invoices easily. The invoice generator creates professional, GST-compliant invoices with all required codes, and you can search the HSN and SAC list without leaving the form.
FAQ
Which SAC code should a freelancer use? IT and web development use 998314; graphic design and photography use 998319; management consulting uses 998313; content writing uses 998314; tutoring uses 999219.
Do freelancers need HSN codes on invoices? HSN codes are for goods; SAC codes are for services. If you sell goods, add HSN. If you provide services, add SAC. Below ₹1.5 crore turnover, codes are optional but recommended.
What happens if I use the wrong SAC code? Your client may not get input tax credit, and the invoice could be rejected at filing time. Match the code to your actual service description.
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