Code on every item
HSN for goods, SAC for services.
- 4, 6 or 8 digits
- Rate linked to item
- Description for reports
Codes done right, once
HSN and SAC codes that sit on every item and add up in your GSTR-1
Every product has an HSN code and every service a SAC code, and the GST rate depends on them. Set the code once on each item in Milaan ERP. It prints on every bill, decides the rate, and builds the HSN summary for your GSTR-1 automatically.
- No credit card needed
- Set once per item
- Table 12 built for you
HSN summary · October
Turnover above ₹5 crore · 6-digit codes
Table 12
| HSN / SAC | Description | Taxable value |
|---|---|---|
| 940320Metal furniture · B2B | 18% | ₹12,46,000.00 |
| 940320Metal furniture · B2C | 18% | ₹3,18,400.00 |
| 940171Upholstered seats · B2B | 18% | ₹3,86,500.00 |
| 998729Repair and maintenance (SAC)Service: SAC starts with 99 | 18% | ₹42,600.00 |
B2B and B2C shown separatelyYes
Items without a code0
Codes on all items100%
HSN on bills
Rate from code
Table 12 ready
What it is
Every item has a code, and the code decides the tax
HSN (Harmonised System of Nomenclature) is an international system of codes for goods. In India it is used for customs and for GST. Services have their own codes, called SAC (Services Accounting Codes), which all start with 99. The GST rate for an item is set by its code, which is why getting the code right matters.
Your HSN code must be printed on tax invoices, and your GSTR-1 includes an HSN-wise summary of sales (Table 12). If your turnover is up to ₹5 crore, you need at least 4 digits; above ₹5 crore, 6 digits. B2B and B2C sales are now shown separately in this summary.
Milaan ERP keeps the code where it belongs: on the item. Set the HSN or SAC code and rate once. Every bill prints it, the GST is calculated from it, and the HSN summary for GSTR-1 builds itself from your sales, split into B2B and B2C.
If two items share a code but different rates, or an item has no code, the software flags it before it reaches your return.
Common problems
Where HSN codes go wrong, and how we prevent it
HSN mistakes that show up in returns and audits.
-
Code missing on bills
Items are billed without HSN codes, and GSTR-1 Table 12 is incomplete.
Code required on items
Items can’t be billed without a code. Missing ones are listed for you to fix.
-
Too few digits
A business above ₹5 crore reports 4-digit codes.
Digits checked
The software checks the digits needed for your turnover.
-
Rate doesn’t match the code
The same HSN code carries different rates on different items.
Mismatches flagged
Items sharing a code with different rates are flagged for review.
-
Summary doesn’t match sales
Table 12 is typed separately and doesn’t agree with the rest of GSTR-1.
Built from the same bills
The HSN summary comes from your bills, so it always agrees.
Features
HSN and SAC features built into every item
Set codes once. Use them everywhere.
Bulk setup
Load codes for many items at once.
- Import from Excel
- Update in bulk
- Help from our team
Printed on bills
The law needs it on tax invoices.
- Every line
- All formats
- Exports and challans too
GSTR-1 Table 12
HSN summary built for you.
- B2B and B2C split
- Quantity and unit
- Tax by head
Checks
Problems caught early.
- Missing codes
- Wrong number of digits
- Rate mismatches
Rate changes
When rates change by code.
- Update all items with a code
- New rate from a date
- Old bills untouched
How it works
From item setup to Table 12
How codes move from your item list into your return.
-
Codes loaded Setup
Your items are imported with HSN or SAC codes and rates. Your CA can check the list.
-
Codes on bills Every day
Each bill line prints the item’s code and uses its rate.
-
Problems flagged Any time
A new item without a code, or a code with mixed rates, is flagged before month end.
-
Summary built Month end
Table 12 is built from your sales, with B2B and B2C shown separately, ready to export.
The rules in brief
HSN rules in plain words
Businesses with turnover up to ₹5 crore must show at least 4-digit HSN codes on B2B invoices and in GSTR-1; above ₹5 crore, 6 digits on all invoices. Exporters and importers use 8-digit codes. Services use SAC codes, which start with 99.
From April 2025, the HSN summary in GSTR-1 is reported separately for B2B and B2C sales, and codes are picked from a list on the portal rather than typed freely. Using the wrong code can mean the wrong rate, so check codes with your CA when you set them up.
Tip: GST rules change from time to time. This page explains them in simple words; for advice on your own case, please speak to your CA.
- Up to ₹5 crore turnoverAt least 4-digit HSN.
- Above ₹5 crore6-digit HSN on all invoices.
- Imports and exports8-digit codes.
- ServicesSAC codes starting with 99.
- Table 12B2B and B2C reported separately.
Pricing
Two simple ways to get started
GST billing and return reports are in every plan; e-invoicing, e-way bills and some advanced features are in the higher plans. Choose cloud to work from anywhere, or offline to keep everything on your own computer.
Offline desktop
from ₹8,999 one-time
Installed on your computer. Works without internet.
- Four plans, single PC to unlimited LAN users
- Data stays on your PC
- Optional yearly support & updates
Online cloud
from ₹12,999 per year
Use it on any computer or phone. Updates and backups included.
- Three plans, from 2 to 10 users
- Mobile app and daily cloud backup
- 14-day free trial
Prices are before 18% GST. Barcode billing, batch tracking, e-invoicing and multi-location features are in the higher plans. Need several users or GSTINs? Ask us for a quote. Compare all plans.
FAQ
Questions about HSN and SAC, answered.
Can’t find your question here? Message us and a real person will reply.
Talk to our team
Send us your item list and we’ll help load the codes.
What is the difference between HSN and SAC?
HSN codes are for goods and SAC codes are for services. SAC codes all start with 99.
How many HSN digits do I need?
At least 4 digits if your turnover is up to ₹5 crore, and 6 digits above that. Exports and imports use 8 digits.
What is the HSN summary in GSTR-1?
Table 12 of GSTR-1, which shows your sales grouped by HSN or SAC code, with quantity, value and tax. B2B and B2C sales are shown separately.
Can I load codes for all my items at once?
Yes. Import them from Excel, or ask our team to help during setup.
What if I don’t know the code for an item?
Check with your CA or the official GST rate lists. Our team can suggest common codes, but your CA should confirm them.
What happens when the rate for a code changes?
Update the rate for all items with that code at once. New bills use the new rate; old bills stay as they were.
How much does Milaan ERP cost?
The offline desktop plan starts at ₹8,999 as a one-time payment and online cloud plans start at ₹12,999 per year, both before 18% GST. Features such as barcode billing, batch tracking, e-invoicing and multi-location are in the higher plans, so tell us what you need and we’ll suggest the right one. The cloud plans come with a free 14-day trial.
Does the code print on the bill?
Yes, on every line of every tax invoice, in all formats.
GST features
More GST help
The right code on every item, every time
Try Milaan ERP for 14 days. We’ll help load your items with HSN codes, free of charge.