Manpower Supply HSN Code: Classification for Labour and Skilled Services
Manpower supply means providing workers to another business for a fixed period or project. It can cover unskilled labour, semi skilled staff and highly skilled professionals. Under GST, manpower supply is treated as a service and is classified under the Service Accounting Code (SAC).
HSN / GST Rate Table
| HSN / SAC Code | Description | GST Rate |
|---|---|---|
| 9985 | Support services including employment and labour supply | 18% |
| 99851 | Employment services including manpower supply services | 18% |
| 998513 | Temporary staffing services / supply of manpower | 18% |
What Is the HSN Code for Manpower Supply?
In GST, manpower and labour supply are usually classified under SAC 998513, which covers temporary staffing and supply of manpower. The broader group is 99851, which deals with employment services.
For most manpower agencies and labour contractors, billing under 998513 with 18% GST is common practice. The invoices should clearly mention the number of persons, number of days or hours, and the service code used.
How Labour and Manpower Services Are Classified under HSN?
Labour and manpower services fall under the service chapter, not product HSN. The Service Accounting Code 99851 covers employment services such as hiring, staffing and manpower supply. Within this, code 998513 is used for temporary staffing, contract labour and similar services.
Unskilled, semi skilled and skilled manpower are not given separate SAC codes. They remain under the same group unless the nature of service changes, such as consultancy, security or housekeeping.
The HSN Code for Skilled Manpower Supply
Skilled manpower supply, such as electricians, technicians or IT professionals, also uses SAC 998513 when the service is mainly to provide people on contract. If the same person becomes an independent consultant, a different SAC may apply.
For clarity, contracts and invoices should describe the service as supply of manpower or staffing service. This helps match the transaction with the correct SAC during audits or departmental checks.
GST on Manpower and Labour Services
Most manpower supply services attract 18% GST under SAC 998513. The tax is charged on the service value, which is usually the labour charges plus the agency margin if any.
Different industries such as construction, manufacturing, IT or hospitality normally use the same SAC for manpower supply. Only in special cases where a separate notification is issued, the rate or classification may change.
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Frequently Asked Questions
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What is the HSN code for labour supply services?
Labour supply and manpower services are generally classified under SAC 998513. This falls within the broader employment services group 99851 and attracts 18% GST.
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Are skilled and unskilled manpower classified differently under HSN?
Skilled and unskilled manpower do not usually get separate SAC codes. Both are covered under the same manpower supply code as long as the nature of service is staffing.
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How does GST apply to manpower supply services?
Manpower supply services are taxable at 18% GST on the full service value. The supplier charges GST in the invoice and the recipient can claim input tax credit if eligible.
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Can different industries (e.g., construction, tech) have different HSN codes for manpower?
Generally, the same SAC 998513 is used across industries for manpower supply. The industry of the recipient does not change the SAC, unless the contract covers a different type of service.
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How is the cost of skilled manpower calculated for GST?
For GST, the taxable value is the total charge for manpower supply, including wages, statutory dues recovered and agency commission. GST is then calculated at 18% on this value.