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Issue ID: 112344
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SAC replace by HSN CODE

Date 14 Jul 2017
Replies 3 Replies
Views 7355 Views
HSN code usage clarified: HSN governs goods classification while SAC remains applicable to services; invoices must reflect HSN.
SAC remains the classification mechanism for services while goods classification under GST follows the tariff structure in the First Schedule to the Customs Tariff Act based on HSN and its rules of interpretation; thus HSN has not replaced SAC. Additionally, Rule 46 of the Central Goods and Services Tax Rules and Notification No. 12/2017-CT require HSN codes on invoices as applicable, and use of published six-digit service tariff codes in place of eight-digit SAC may cause misclassification. (AI Summary)

We have noticed that SAC is replaced by HSN Code. If it is ok any notification is there.

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