Workflow guide
HSN and SAC codes explained: what they are and how Tiram fills them in automatically
Quick answer
HSN codes classify goods and SAC codes classify services for GST returns. In Tiram, HSN/SAC lives on the product master — set it once and it auto-fills on every invoice line item and rolls up into the GSTR-1 HSN summary, on every plan including Silver.
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HSN digit requirement by turnover
| Annual turnover (prior FY) | HSN digits on B2B invoices | HSN digits on B2C invoices |
|---|---|---|
Up to ₹5 crore | 4 digits (mandatory) | 2 digits (optional) |
Above ₹5 crore | 6 digits (mandatory) | 6 digits (mandatory) |
Workflow step
What is an HSN code? What is an SAC code?
HSN (Harmonized System of Nomenclature) is an internationally standardised numeric code that classifies goods for GST — the same code prefix that means rice under GST also means rice in customs and trade documents worldwide. SAC (Services Accounting Code) is the equivalent for services, and always starts with 99. Both exist so every taxpayer, auditor, and the GST portal itself can agree on exactly what an invoice line is selling, without relying on free-text product names that vary shop to shop.
Workflow step
How many digits of HSN do I actually need?
GST law ties the required HSN digit length to your aggregate annual turnover in the prior financial year. Businesses with turnover up to ₹5 crore must show at least a 4-digit HSN on B2B tax invoices (2 digits is enough for B2C); businesses above ₹5 crore turnover must show a 6-digit HSN on every invoice, B2B and B2C alike. Getting the digit length wrong doesn't change the tax you owe, but it's a common reason a GSTR-1 upload gets flagged for correction — confirm your exact slab with your CA, since turnover thresholds are set by GST notification and can change.
Workflow step
How Tiram handles HSN and SAC codes
Set HSN/SAC once on the product master, alongside its GST% and unit of measure — Products → New product has a dedicated HSN code field next to GST %. From then on, every invoice line item that references that product pulls in its HSN automatically; nobody at the counter re-types it per bill. The field can be left blank while you finish tagging your catalog, but any invoice line without an HSN is a line GSTR-1 export will flag for correction before you upload.
Workflow step
HSN in the GSTR-1 summary
Every issued invoice's line-level HSN and quantity roll up automatically into GSTR-1's HSN summary section when you export from Reports → GSTR-1 — see the dedicated GSTR-1 export guide for the full 3-step flow. A product with no HSN set, or an HSN that doesn't match its own GST%, shows up in export validation before you download the file, not after the GST portal rejects the upload.
Workflow step
Which Tiram plan includes HSN/SAC support?
HSN and SAC code fields, GST% on every product, and the units-of-measure master are included on every Tiram plan — Silver, Gold, and Platinum — on both the cloud app and the offline Windows/Mac desktop app. There is no upgrade required to tag your catalog correctly for GST.
Workflow step
Common HSN/SAC mistakes to avoid
The three mistakes that most often trip up a GSTR-1 upload: using a 4-digit HSN after turnover has crossed ₹5 crore and 6 digits are now required; copying an HSN from a similar product without checking its GST% actually matches (a product's tax rate should follow from its HSN classification, not the other way round); and leaving new products without any HSN at all, which shows up as a validation gap only when you try to export.
Quick answers
- What is an HSN code?
- HSN (Harmonized System of Nomenclature) is a numeric code that classifies goods for GST, customs, and trade. Every invoice line item you bill needs one so the tax rate and reporting are unambiguous.
- What is an SAC code?
- SAC (Services Accounting Code) is the HSN equivalent for services — a numeric code, always starting with 99, used on GST invoices for services instead of goods.
- Is HSN mandatory for small businesses?
- Yes, but the digit length depends on turnover: businesses up to ₹5 crore turnover need a 4-digit HSN on B2B invoices; above ₹5 crore, 6 digits are mandatory on every invoice, B2B and B2C.
- Does Tiram require HSN codes to start billing?
- No — HSN is an optional field on the product master so you can start billing immediately, but GSTR-1 export flags any line missing one before you upload.
FAQs
- Where do I set a product's HSN code in Tiram?
- On the product form — Products → New product (or edit an existing product) has an HSN code field next to GST %. Set it once and every invoice line for that product uses it automatically.
- Can I bulk-import HSN codes for products I already have in a spreadsheet?
- Yes. Tiram's product import (CSV/XLSX) includes an HSN code column, so you can bring HSN/SAC in for your whole catalog at once instead of tagging products one by one.
- What happens if I use the wrong HSN code?
- Using an incorrect HSN doesn't change your invoice math directly, but it's flagged during GSTR-1 export validation and can draw a query if it doesn't match your declared GST rate for that good.
- Does the HSN/SAC field work the same on the offline desktop app?
- Yes. HSN and SAC fields, and the GSTR-1 HSN summary, work identically on the cloud app and the offline Windows/Mac desktop app — this isn't a platform-gated feature.
- Which plan do I need for HSN/SAC support?
- None — HSN, SAC, GST%, and units of measure are included on every Tiram plan, from Silver up.
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