While HSN codes classify physical goods, SAC codes classify services. Both are required on GST invoices in India. In Zoho Books, when you set an item’s type to Service, the HSN Code field becomes the SAC Code field. The entry is the same: a 6-digit numeric code. Common SAC codes include 998313 (IT infrastructure management services), 997211 (rental of residential and commercial property), and 997221 (freight transport by road). Your specific services may have more granular codes under each chapter.
Every service invoice in Zoho Books displays the SAC code for each line item. For the invoice to be valid under GST, the SAC code must be correct and match the service actually delivered. An incorrect SAC code that attracts a lower tax rate than the correct code is a GST compliance risk; if discovered during an audit, it can result in demand notices for the difference in tax plus interest and penalties.
For businesses above the e-invoicing threshold, Zoho Books submits each invoice to the Invoice Registration Portal (IRP). The IRP validates that a SAC code is present for service items and an HSN code is present for goods items. An invoice without the required code will be rejected by the IRP, preventing IRN generation. This makes correct SAC code setup in the Zoho Books item master critical for businesses above the e-invoice threshold.
A SAC code in Zoho Books is a 6-digit service classification code assigned to service items, required on GST invoices to identify the type of service and the applicable GST rate.
Use the CBIC GST portal’s SAC code search. Common codes include 998314 for IT software services and 997211 for property rental. Enter the code in the SAC Code field of each service item in Zoho Books.
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