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e-Invoice rejected due to invalid HSN/SAC and description

Last updated on: April 28, 2026 | ⏱ 5 min read

Cause
You may encounter the following errors, when the HSN/SAC defined for the stock items, stock groups, or the Company is mismatching or invalid.

  • 6 digit HSN code is mandatory for taxpayers with greater than or equal to 5 Cr.
  • Mismatch between HSN/SAC and Type of Supply.
  • HSN code(s)-{0} is invalid.
  • Invalid HSN Code
  • Description not available

Resolution

In TallyPrime Release 5.0 and later, validate and enter the correct HSN code for the stock item, stock group, and company. You can also validate HSN from the GST Rate Setup report, as well.

Ensure that:

  • For goods, the HSN starts with 01 to 98 and the Type of Supply is set to Goods.
  • For services, the SAC starts with 99 and the Type of Supply is set to Services.

If your business has a turnover exceeding Rs. 5 Crore in the previous financial year, then you need to have 4, 6, or 8 digit HSN codes for Stock Items as per Notification 78/2020 issued by the GST authority.

Validate the correct HSN in Stock Item

  1. Press Alt+G (Go To) > Alter Master > Stock Item.
  2. Select the required stock item and press Enter.
  3. Under HSN/SAC & Related Details, check if a valid HSN/SAC is specified.
    For TallyPrime 2.1 & earlier:
    1. Enable Set/Alter GST Details: Yes.
    2. Ensure that the HSN/SAC is valid.
  4. Press Alt+B (Get HSN/SAC Info).
  5. If prompted, log in using your e-Invoice or e-Way Bill credentials.
    This appears if you are not logged in or if your previous session expired.
  6. In the Get HSN/SAC Info Summary screen, verify the details entered in Stock Item against the details as on the portal and make necessary changes, if needed.
    If the HSN entered was incorrect, the portal will reject the request for validation with the Reason of Rejection as Invalid HSN Code. You can enter the correct HSN for the Stock Item and then validate other HSN/SAC information for the same.
  7. Press Ctrl+A to save.

Validate the correct HSN in Stock Group

  1. Press Alt+G (Go To) > Alter Master > Stock Group.
  2. Select the required stock group and press Enter.
  3. Under HSN/SAC & Related Details, check if a valid HSN/SAC is specified.
    For TallyPrime 2.1 & earlier:
    1. Enable Set/Alter GST Details: Yes.
    2. Ensure that the HSN/SAC is valid.
  4. Press Alt+B (Get HSN/SAC Info).
  5. If prompted, log in using your e-Invoice or e-Way Bill credentials.
    This appears if you are not logged in or if your previous session expired.
  6. In the Get HSN/SAC Info Summary screen, verify the details entered in Stock Group against the details as on the portal and make necessary changes, if needed.
    If the HSN entered was incorrect, the portal will reject the request for validation with the Reason of Rejection as Invalid HSN Code. You can enter the correct HSN for the Stock Group and then validate other HSN/SAC information for the same.
  7. Press Ctrl+A to save.

Validate the correct HSN in Company

  1. Press F11 (Company Features).
  2. Set/Alter Company GST Rate and Other Details: Yes.
  3. Under HSN/SAC & Related Details, check if a valid HSN/SAC is specified.
    For TallyPrime 2.1 & earlier:
    1. Enable Goods and Services Tax: Yes > GST Details.
    2. Set/Alter GST Details: Yes and ensure that the HSN/SAC is valid.
  4. Press Alt+B (Get HSN/SAC Info).
  5. If prompted, log in using your e-Invoice or e-Way Bill credentials.
    (This appears if you are not logged in or if your previous session expired.)
  6. In the Get HSN/SAC Info Summary screen, verify the details entered in Stock Item against the details as on the portal and make necessary changes, if needed.
    If the HSN entered was incorrect, the portal will reject the request for validation with the Reason of Rejection as Invalid HSN Code. You can enter the correct HSN for the Company and then validate other HSN/SAC information for the same.
  7. Press Ctrl+A to save.

Validate HSN from the GST Rate Setup report

  1. Press Alt+G (Go To) > type or select GST Rate Setup and press Enter.
  2. Select the Stock Items/Stock Groups using spacebar.
  3. Press Alt+B (Get HSN/SAC Info).
  4. If prompted, log in using your e-Invoice or e-Way Bill credentials.
    (This appears if you are not logged in or if your previous session expired.)
  5. In the Get HSN/SAC Info Summary screen, verify the details entered in Stock Item/Stock Group against the details as on the portal and make necessary changes, if needed.
  6. Press Ctrl+A to save.

If HSN code provided is not valid then refer to Goods & Services Tax (GST) | Services to search for HSN/SAC.

Now, let’s see how to update HSN for stock item, stock group, and company.

Update HSN in Stock Item

  1. Press Alt+G (Go To) > Alter Master > Stock Item.
  2. Select the required stock item and press Enter.
  3. In the Stock Item Alteration screen, update HSN details under the HSN/SAC & Related Details.
    1. HSN/SAC Details: Specify Details Here.
    2. Enter HSN/SAC.
    3. Enter description, if needed.
  4. Press Ctrl+A to save.

Update HSN in Stock Group

  1. Press Alt+G (Go To) > Alter Master > Stock Group.
  2. Select the required stock item and press Enter.
  3. In the Stock Group Alteration screen, update HSN details under the HSN/SAC & Related Details.
    1. HSN/SAC Details: Specify Details Here.
    2. Enter HSN/SAC.
    3. Enter description, if needed.
  4. Press Ctrl+A to save.

Update HSN in Company

  1. Press F11 (Company Features).
  2. Set/Alter Company GST Rate and Other Details: Yes.
  3. In the GST Rates and Other Details screen, update HSN details under the HSN/SAC & Related Details.
    1. HSN/SAC Details: Specify Details Here.
    2. Enter HSN/SAC.
    3. Enter description, if needed.
  4. Press Ctrl+A to save.

Now, proceed to generate e-Invoice again.

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