HSN and SAC Codes for Freelancers in India: A Quick Reference

If you have ever sat down to fill out a GST invoice and stopped at the "HSN/SAC code" field, you are not alone. Most Indian freelancers are not sure which code applies to their work, whether they even need one, or whether there is a difference between HSN and SAC. This guide answers all three. It covers the SAC codes for the services Indian freelancers most commonly bill for, when you are actually required to put a code on the invoice, and what happens if you get it wrong.

The quick answer

Freelancers in India provide services, so the code that applies to your work is a SAC code, not an HSN code. HSN is for goods, SAC is for services. The two share the same field on a GST invoice, which is why the field is usually labelled "HSN/SAC."

You only need to put a SAC code on your invoice if you are registered for GST. Freelancers under the ₹20 lakh annual turnover threshold are not required to register, and their invoices do not need a SAC code. For most common freelance services the SAC codes you will see are: 998314 for software and web development, 998313 for IT consulting and SEO or social strategy work, 998365 for digital advertising and media buying, 998311 for management consulting, 998391 for specialty design including graphic design, and 998387 for photography. The default GST rate on all of these is 18%.

HSN vs SAC: what each one is for

HSN stands for Harmonized System of Nomenclature. It is an international classification system for goods. A six-digit HSN code identifies what a product is, from "office chairs" to "wheat flour." If you sell goods, you use an HSN code.

SAC stands for Services Accounting Code. It is the Indian classification for services. A six-digit SAC code identifies what kind of service is being provided, from "management consulting" to "interior design." If you sell services, which is what most freelancers do, you use a SAC code.

On a GST invoice both end up in the same field, so the field is usually labelled "HSN/SAC code." Use SAC if your work is a service.

When you actually need a SAC code on your invoice

You need a SAC code on your invoice only if you are registered for GST. The number of digits you must show depends on your aggregate turnover in the preceding financial year, computed PAN-wise across all your branches and businesses if you have more than one.

So a typical solo freelancer who is GST-registered but well under ₹5 crore needs the first 4 digits of the SAC. For almost every freelance service in this guide, that is 9983, the chapter that covers professional, technical, and business services. You can still show the full 6-digit code if you want, and many freelancers do for clarity.

If you are not registered for GST, the SAC code field on your invoice can be left blank entirely. The guide to invoicing without a GST number covers what your invoice should and should not contain when you are under the threshold. If you are still figuring out whether to register at all, the broader business-registration guide for Indian freelancers covers GST, Udyam, and the rest in one place.

The SAC codes Indian freelancers most often use

These are the SAC codes that cover the bulk of freelance work in India. The default GST rate on all of them is 18%.

A note on the IT codes. 998313 and 998314 sound similar and freelancers mix them up. The line between them is whether you are building something or advising on something. 998314 is for the actual design and development work, the freelancer who writes the code, builds the site, or designs the system. 998313 is for consulting and support, the freelancer who advises on tech strategy, runs an SEO audit, or manages a digital marketing campaign without building the product. If you do both, most freelancers pick the one that matches the larger share of the engagement.

One more code worth knowing for digital marketing freelancers: 998365 covers advertising services proper, including running paid ad campaigns and buying media for clients. The honest split is that SEO audits, social strategy, and consulting work fit 998313, while actually running the ads and buying placements sits under 998365. If your work is dominantly one of those, use that code. If it is genuinely split, pick the larger share or list both against the matching line items.

The ambiguous ones

Two service types come up often and do not have a clean, agreed-upon SAC code. It is worth knowing the ambiguity rather than copying whatever appears first on Google.

Content writing. There is no SAC code specifically called "content writing." Some sources classify it under 998314, but that code is for IT design and development, which is a stretch. Others use 998399, which is the residual "other professional, technical, and business services" category, or codes inside chapter 9984 for arts. The honest answer is that there is no perfect fit. If you are a freelance writer registering for GST, this is worth a 10-minute conversation with a chartered accountant for your specific situation.

Mixed engagements. Most freelance projects combine work types. A web project might include design, development, and consulting. The convention is to pick the SAC for the dominant service and use that for the whole invoice, or to split line items if the services are billed separately at different scopes. If a single engagement clearly bundles two types of work for one price, one code is acceptable. If you bill them separately, list both codes against the matching line items.

What happens if you use the wrong SAC code

Using a wrong SAC code is not a fatal error, but it is not nothing. The two real risks: a notice from the GST department asking you to clarify the classification, and a problem on the client's side, where their accounts team rejects Input Tax Credit on your invoice because the code does not match the service they paid for. Neither is common, but both are real, and both are avoidable.

If you discover a code error after issuing the invoice, the standard fix is to issue a credit note for the original invoice and reissue a fresh invoice with the correct code. The step-by-step freelance invoice guide covers the fields a fresh invoice needs.

Get it right once, then stop thinking about it

The good news about SAC codes is that yours does not change. Once you pick the right one for your work, you reuse the same code on every invoice for the rest of the financial year and beyond. Pick deliberately the first time, write it down, and put it on every invoice in the same field, in the same place. Some invoicing tools save the code to your business profile so the field fills itself, which is the version where the SAC code stops being something you think about at all.

One caveat worth stating plainly. GST classifications can be argued, your exact service mix is unique, and rules around individual codes get updated. This guide is a reference, not personalised advice. For anything beyond the common cases above, a short conversation with a chartered accountant is the right next step.

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