As of the latest update from the GST E-invoice system on December 04, 2023, it has been mandated that a minimum of 6 digits of the HSN code will be compulsory in e-Invoices for taxpayers with an Aggregate Annual Turnover (AATO) of 5 Crore and above. This requirement will come into effect from December 15, 2023.
The Harmonized System of Nomenclature (HSN) is an internationally accepted method of naming, classifying and identifying products. HSN codes are used to classify goods to calculate GST.
Service Accounting Codes (SAC) is a unique code provided for recognition, measurement and taxation of services.
These codes must be mentioned when you register for GST, on your invoices, and on your GST returns which you need to upload on the GST Portal.