HSN and SAC codes
HSN and SAC codes for freelancers and consultants
A freelancer's invoice is short: one or two service lines and a code on each. Picking the right code is most of the GST work, so here are the usual ones.
In short
Freelancers and consultants bill under SAC codes such as 998311 for management consulting, 998314 for software and 998391 for design, usually at 18%. SimpleERP prints the code on every line and builds the HSN summary for domestic clients.
Illustration of GST tax invoice INV-2026-27-0213 to Ravi Stores with CGST 9% and SGST 9%, round off, a UPI QR code and the amount in words.
The data
The codes and usual rates
| Code | Goods or service | Usual GST rate | Notes |
|---|---|---|---|
| 998311 | Management consulting and management services | 18% | Strategy, operations and HR consulting. |
| 998312 | Business consulting services, including public relations | 18% | Market entry, PR and business advice. |
| 998313 | Information technology consulting and support | 18% | IT advice and support. |
| 998314 | Information technology design and development | 18% | Software, apps and website development. |
| 998315 | Hosting and IT infrastructure provisioning | 18% | Hosting you resell or manage for clients. |
| 998319 | Other information technology services | 18% | IT work not covered above. |
| 998391 | Specialty design services | 18% | Graphic, UI, product and fashion design. |
| 998395 | Translation and interpretation services | 18% | Confirm the six digits against the SAC list. |
| 998399 | Other professional, technical and business services | 18% | Writing and other work not listed elsewhere; check the fit. |
| 998361 | Advertising services | 18% | Campaign planning and ad management. |
| 998381 | Portrait photography services | 18% | Studio and portrait shoots. |
| 998383 | Event photography and videography | 18% | Confirm the six digits against the SAC list. |
| 999293 | Commercial training and coaching services | 18% | Workshops and corporate training. |
| 8471 | Laptops and computers | 18% | Bought for your work; input tax credit if registered. |
| 8528 | Monitors | 18% | Check the heading for the display type. |
| 8525 | Digital cameras | 18% | Cameras for photography work. |
| 8517 | Mobile phones | 18% | Phones and their parts. |
Sources: CBIC: classification of services (SAC), CBIC: Customs tariff (HSN chapters), GST Council: rate changes effective 22 September 2025. Verified .
Which HSN and SAC codes does a freelancer or consultant use?
Freelancers sell their time and skill, so nearly every line they bill is a service with a SAC code. Management and business consulting, software and website work, graphic and product design, training, translation and photography each have their own six digits. The goods are the tools of the trade: a laptop, a monitor, a camera and a phone, bought on bills that carry HSN codes and, if you are registered, input tax credit.
How to check a rate before billing
Most freelance services carry 18% and did not change on 22 September 2025. The work is in choosing the code that matches what you deliver. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.
- Describe the deliverable: advice, software, design, training or photographs. Each points to a different code.
- Look up the six digits in the SAC list that CBIC publishes, and the rate in the current notification.
- Check whether you need to register at all; services below the turnover threshold may not.
- Confirm with your CA once, then set the code on the service so every invoice repeats it.
HSN and SAC on invoices and the GSTR-1 summary in SimpleERP
Set up each service you sell once and every invoice carries its code and rate.
- One service per kind of work, with its SAC code, rate and a default price.
- CGST and SGST or IGST chosen from the client's place of supply, so a client in another state gets IGST.
- Receipts and ageing: see which client owes what and for how long.
- HSN summary report by code, exported to CSV for your CA. SimpleERP does not file the return.
Illustration of a profit and loss statement for April to September 2026 with net profit of ₹4,12,800, a GST summary and the lock date.
Reverse charge and exemptions that touch freelancers
A few rules decide whether and how you charge GST, as notified; check each with your CA.
- Registration threshold: a service provider below the aggregate turnover threshold may not need to register or charge GST.
- Clients abroad: export of services can be zero-rated under a letter of undertaking, but SimpleERP bills in rupees only, so those invoices need another tool.
- Office or coworking rent from an unregistered landlord may be under reverse charge in your hands if you are registered.
- Legal fees you pay an advocate fall under reverse charge if your turnover is above the threshold. SimpleERP has no reverse charge flag; use the invoice notes.
Honest limits
What SimpleERP does not do for freelancers
- Multi-currency invoices. SimpleERP bills in rupees only, so it fits domestic clients; invoices to foreign clients in dollars or euros are not covered.
- Time tracking and hourly timesheets. Enter hours or days as the quantity on the invoice line.
- A reverse charge flag, e-invoice IRN and GST return filing.
FAQ
Questions, answered
What is the SAC code for consultancy services?
Management consulting is usually 998311 and business consulting 998312, both at 18%. IT consulting is 998313, and engineering or technical consulting sit under other codes. Pick the code that matches what you deliver and confirm it against the SAC list.
Does a freelancer need to charge GST?
Only if you are registered. A service provider below the aggregate turnover threshold is usually not required to register, though some choose to. Once registered, you charge GST on taxable services. Ask your CA about the threshold that applies in your state.
Can I invoice foreign clients from SimpleERP?
Not in their currency. SimpleERP bills in rupees only and does not prepare export invoices under a letter of undertaking. It suits freelancers whose clients are in India; if most of your work is for overseas clients, you will need another tool for those invoices.
What is the SAC code for graphic design?
Graphic, UI and product design are usually billed under 998391, specialty design services, at 18%. If the job is building a website or app rather than designing it, 998314 may fit better. Confirm the code against the SAC list.
Related
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