For service hsn or sac

HSN codes are for Goods while SAC codes are for Services.

Thanks Saloni,

Then I will educate my customer who is pressurising me to give my HSN code for my Services and not accepting my SAC given earlier.

Hope the GSTR returns will support only SAC and not HSN for Services

Do you provide job work Service to your customer?

No Job Work, Design Services (Enggineering Conslutancy), any significance on it?

The Chapter/Section/Heading of that service is 9989983 but SAC code is 00440422, which should I mention in service invoice?

What is difference between HSN code and Chapter/Section/Heading code.

Since GSTIN portal displays only the SAC code to select our service code during Migration / Registration and if I mention Chapter/Section/Heading code or HSN code, will GSTR 1 or 2 will support it.

I am too confused

When you are selling goods, in that case HSN code will come into picture. HSN code are 8 digit codes. But if your turnover < Rs. 1.5 Cr, no need to mention HSN code on invoice and if it is between 1.5 Cr and 5 Cr, 2 digit HSN code is required. In case it is more than 5 Cr, 4 digit HSN is required. HSN Code is divided into 3 parts which are first 4 digits Chapter, next 2 digits Section, next 2 digits Heading.

When you are providing any service like consultancy, job work, construction etc, SAC code is required. In this case there is no relevance of HSN code. SAC code is 6 digit code.

In your tax invoice of consultancy service, SAC code shall be mentioned.

Below are the relevant SAC codes for your service, kindly select which is more suitable to you:
998331 - Engineering Advisory Service
998332 - Engineering Services for Building Projects
998333 - Engineering Services for Manufacturing and Industrial Projects
998334 - Engineering Services for Transportation Projects
998335 - Engineering Services for Power Projects
998336 - Engineering Services for Telecommunications and Broadcasting Projects
998337 - Engineering Services for Waste Management Projects
999338 - Engineering Services for Other Projects not covered above

Dear Ahmed,

Thands for elobrating

I will fit in 998338 (Engineering services for other projects n.e.c) at 18% GST.

I have already issued few invoices on export services mentioning the SAC as 00440422 which was the code for Design Services.. Invoices were raised without payment of IGST under LuT/Bond

Should I neccessarily recall them & issue a revised one with new SAC? what will be impact on returns (GSTR1)

Pls guide me