Commission HSN Code for GST Classification
Commission is a common form of income for agents, brokers, marketing partners and intermediaries who help close sales, bring new clients or arrange deals. It can arise in trade of goods, financial products, real estate, insurance and many other sectors.
To use the commission HSN code correctly and avoid mistakes in GST returns , businesses need to understand how different types of commission and brokerage are classified as services under GST and which GST rates usually apply after the changes from 22 September 2025.
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What is the HSN Code for Commission and Brokerage?
Under GST, commission and brokerage are treated as services. Instead of the goods HSN list, they are classified using the service accounting code structure that covers financial services , real estate services and other business support services.
There is no single code that covers every type of commission. Commission for sale of shares or financial products, brokerage for real estate, and marketing referral commission for bringing customers can each fall in different service headings depending on the main nature of the service.
In practice, most businesses identify whether the commission relates to financial products, real estate or general business promotion. They then select the nearest service accounting family and use that consistently for all invoices and GST returns for that activity.
Commission SAC Code Classification and GST Rates
Here are some commonly used HSN codes and GST rates for this category
4 Digit SAC Code Classification
| HSN/SAC Code | HSN/SAC Code Title | GST Rate |
|---|---|---|
| 9954 | Other construction services | 18% |
| 9961 | Services in wholesale trade. Explanation-This service does not include sale or purchase of goods but includes: Ð Services of commission agents, commodity brokers, and auctioneers and all other traders who negotiate wholesale commercial transactions between buyers and sellers, for a fee or commissionÕ Ð Services of electronic wholesale agents and brokers, Ð Services of wholesale auctioning houses. | 18% |
| 9962 | Services in retail trade. Explanation – This service does not include sale or purchase of goods | 18% |
| 9965 | Other Goods transport services | 18% |
| 9967 | Other Supporting services in transport | 18% |
| 9971 | Other Financial and related services | 18% |
| 9972 | Upfront amount (called as premium, salami, cost, price, development charges or by any other name) payable in respect of service by way of granting of long term lease of thirty years, or more) of industrial plots or plots for development of infrastructure for financial business, provided by the State Government Industrial Development Corporations or Undertakings or by any other entity having 50 per cent. or more ownership of Central Government, State Government, Union territory to the industrial units or the developers in any industrial or financial business area. substituted on 13/10/2017 | 0% |
| 9983 | Any services provided by, _(a) the National Skill Development Corporation set up by the Government of India;(b) a Sector Skill Council approved by the National Skill Development Corporation;(c) an assessment agency approved by the Sector Skill Council or the National Skill Development Corporation;(d) a training partner approved by the National Skill Development Corporation or the Sector Skill Council, in relation to-(i) the National Skill Development Programme implemented by the National Skill Development Corporation; or(ii) a vocational skill development course under the National Skill Certification and Monetary Reward Scheme; or(iii) any other Scheme implemented by the National Skill Development Corporation. | 0% |
| 9986 | Support services to mining, electricity, gas and water distribution | 18% |
6 Digit SAC Code Classification
| HSN/SAC Code | HSN/SAC Code Title | GST Rate |
|---|---|---|
| 996111 | Services provided for a fee/commission or contract basis on wholesale trade | 18% |
| 996211 | Services provided for a fee/commission or contract basis on retail trade | 18% |
| 996712 | Customs House Agent services | 18% |
| 997152 | Brokerage and related securities and commodities services including commodity exchange services | 18% |
| 997161 | Insurance brokerage and agency services | 18% |
| 997221 | Property management services on a fee/commission basis or contract basis | 18% |
| 997222 | Building sales on a fee/commission basis or contract basis | 18% |
| 997223 | Land sales on a fee/commission basis or contract basis | 18% |
| 997224 | Real estate appraisal services on a fee/commission basis or contract basis | 18% |
| 998362 | Purchase or sale of advertising space or time, on commission | 18% |
| 998363 | Sale of advertising space in print media (except on commission) | 5% |
| 998366 | Sale of other advertising space or time (except on commission) | 18% |
* GST rates may vary based on the latest GST notifications and amendments
How to Apply HSN Code for Commission Income in GST?
To apply the correct code, start by asking what the main underlying activity is. If the commission comes from arranging sale or purchase of shares or mutual funds it usually falls in the financial services family. If it comes from arranging sale or lease of a flat or shop it generally falls in the real estate services family.
Where the commission is paid for pure marketing support, such as an agent who brings leads or orders without dealing in property or financial products, it is usually treated as a business support or professional service. In such cases, businesses may use a general business service or other service family for the commission income.
The same commission agent may earn different types of commission. For example, a firm may earn brokerage on property and also earn marketing commission for selling goods. It is good practice to keep separate service items in the accounting software for each type of commission and map each item to its own service code family.
Sales Commission HSN Code and Its Importance for GST Returns
In many trading businesses, sales staff or outside agents earn a percentage commission on sales. This sales commission is normally treated as a supply of service by the agent to the business and is taxed in the standard 18% GST slab unless a specific exemption applies.
When an agent raises an invoice for sales commission, the invoice should show the correct service HSN code, description of the commission service, taxable value and GST amount. The principal records this invoice as an expense and can claim input tax credit if the conditions for credit are met.
In GST returns, outward supplies of commission are reported under the service HSN or service accounting code. If the code is wrong or missing, it can create issues in data analytics by the tax department and may delay reconciliation of input tax credit for the recipient.
Wrong classification alone may not always change the tax rate because most commission services are in the standard 18% slab. However repeated mistakes or use of a code that suggests an exempt or lower rate service can attract notices and may lead to demand of differential tax, interest and penalties. Using the correct commission code from the start helps avoid such disputes.
Conclusion
The commission HSN code is chosen from the list of service accounting codes that cover financial services, real estate services and general business support services. The correct code depends on whether the commission relates to shares and financial products, property transactions or marketing and sales support.
Since most commission and brokerage services are standard taxable services they usually attract 18% GST under their respective service code families after the rate changes from 22 September 2025. When agents and businesses map each type of commission income to the right code and report it correctly in invoices and returns, they keep GST compliance smooth and reduce the risk of notices for wrong classification.
