HSN and SAC codes for clinics, explained

Every GST invoice line carries a code that tells the tax system what was sold. For goods that's an HSN code; for services it's a SAC code. Clinics deal in both, and getting the code right is part of a compliant invoice. In plain terms:

HSN vs SAC, in one line

• HSN: Harmonised System of Nomenclature. An internationally standardised code that classifies goods. When your clinic sells a product (medicines, a brace, a device), that line needs an HSN code.
• SAC: Services Accounting Code. The equivalent for services. A consultation, a procedure, a therapy session: these are services, and they carry a SAC.

A clinic's consultations and procedures are services; anything you sell over the counter is a good. Most invoices a clinic raises are SAC-led, with HSN lines when products are involved.

"But healthcare is GST-exempt. Why do I need codes?"

Two reasons. First, the exemption isn't blanket: many clinical services are exempt, but product sales and certain other items can be taxable, and a taxable line still needs its code and rate. Second, a code communicates the nature of the supply on a proper tax invoice even where the rate is nil. It's part of issuing a clean, defensible invoice.

Human health services sit under the SAC 9993 group; the exact sub-code and rate depend on the specific service. Because exemptions and rates change, confirm your clinic's codes and rates with a chartered accountant. This is a primer, not tax advice.

How many digits do you need?

GST rules tie the number of HSN/SAC digits you must show to your turnover band: more turnover, more digits. Rather than memorise the thresholds, the practical move is to store the correct code once per service or product and let it print on every invoice, so you're never typing a code by hand at the counter.

Why this matters on the invoice

A compliant tax invoice lists, per line: the item, its HSN/SAC code, the taxable value, and the GST split: CGST + SGST for a same-state patient, or IGST inter-state. Get the code wrong and the invoice is wrong; get it right once and it's right forever.

How Avinya Plus handles it

In Avinya Plus, each service or product in your catalogue carries its own HSN/SAC code and tax rate. Bill a visit and the code and the correct CGST+SGST or IGST split flow onto the invoice automatically (A4 tax invoice or 80mm thermal) with no manual code entry per bill. (For the wider GST picture, see our GST billing guide.)

Set the codes up once with your accountant; let the system carry them. Book a demo from the menu to see catalogue-driven invoicing on your own services.