Skip to Content
Items & InventoryHSN & GST Rate

HSN & GST Rate

Every item you sell should carry the right tax classification so your invoices are GST-compliant and the tax is calculated correctly.

HSN and SAC codes

  • HSN (Harmonised System of Nomenclature) codes classify goods.
  • SAC (Services Accounting Code) codes classify services.

Set the correct code on each item. It carries through to every invoice line, where showing the HSN/SAC is a legal requirement on a GST tax invoice.

Not sure of an item’s HSN/SAC? Check with your accountant or the GST portal. Using the correct code keeps your filings and your customers’ input tax credit clean.

GST rate

Set the item’s GST rate % (for example 0, 5, 12, 18, or 28). When the item goes onto an invoice, Clorvia uses this rate to work out the tax for that line.

How the tax is split

On the invoice, the GST is split based on the place of supply:

  • Same state as your firm → CGST + SGST (half each).
  • Different state → IGST (the full rate).

You don’t have to do this maths by hand — see GST on Invoices for how it appears on the document.

Cess

If an item attracts GST compensation cess, that can be captured on the invoice as well.

→ Next: Stock, Batches & Serials

PricingStock, Batches & Serials