9981 SAC Code: Research & development services
SAC code 9981 covers an extensive array of research and development services. It encompasses scientific research services, market research services, and other research and development activities across diverse fields such as agriculture, medical science, engineering, and social science.
Scope of SAC Code 9981
SAC 9981 pertains to a wide range of research and development services, specifically including research and experimental development in both natural sciences and engineering, as well as in medical, pharmaceutical, agricultural, social sciences, and humanities, along with interdisciplinary research. It also covers the creation of original R&D outputs in fields such as pharmaceuticals, agriculture, biotechnology, and computer-related services.
Categorisation of SAC Code 9981
SAC Code 9981 under GST can be classified in the following ways:
| SAC Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 9981 | Services provided by an incubatee up to a total turnover of fifty lakh rupees in a financial year subject to the following conditions, namely:-(a) the total turnover had not exceeded fifty lakh rupees during the preceding financial year; and(b) a period of three years has not elapsed from the date of entering into an agreement as an incubate. | 0% without ITC | 0% without ITC | Services by an eligible “incubatee” within the prescribed turnover and time limits are exempt as long as the conditions in the notification are met. The GST 2.0 rate changes for services do not touch this specific incubation exemption. |
| 998111 | Research and experimental development services in natural sciences | 18% with ITC | 18% with ITC | Research and experimental development services in natural sciences continue to attract 18% with ITC. They are not listed among the services getting a reduced slab in the 56th Council summary; the general standard rate of 18% for such professional / technical services remains. |
| 998112 | Research and experimental development services in engineering and technology | 18% with ITC | 18% with ITC | Similar to 998111, R&D services in engineering and technology are charged at 18% with ITC. The 56th meeting rationalisation does not carve out any special lower rate or exemption for these codes, so 18% continues. |
| 998113 | Research and experimental development services in medical sciences and pharmacy. | 18% with ITC | 18% with ITC | Research and development services under heading 9981 have been at 18% since 2017 and continue at 18% after GST 2.0 changes. No specific concession or slab change announced for this heading in the 56th Council documents. |
| 998114 | Research and experimental development services in agricultural sciences. | 18% with ITC | 18% with ITC | Research-services summaries for SAC 9981 list all sub-codes, including 998114, at 18% GST with ITC, with only very specific sports-event concessions at nil. The 56th Council’s FAQs and press note do not propose a different slab for research services, so 18% continues. |
| 998121 | Research and experimental development services in social sciences. | 18% with ITC | 18% with ITC | Social-science research under 998121 is grouped with other research services and shown at 18% in SAC-wise charts. No new 5% entry has been created for this code, so the standard rate remains 18% after GST 2.0. |
| 998122 | Research and experimental development services in humanities | 18% with ITC | 18% with ITC | Humanities research shares the same treatment as other 9981 services. Rate tools and explanatory notes put it at 18% with ITC; the 56th Council’s rationalisation mentions no shift for this group, so there is effectively no change. |
| 998130 | Interdisciplinary research and experimental development services. | 18% with ITC | 18% with ITC | Interdisciplinary R&D is also in 9981, where current references give an 18% GST rate with ITC. The move to a two-slab structure keeps research services in the 18% bucket. |
| 998141 | Research and development originals in pharmaceuticals | 18% with ITC | 18% with ITC | R&D “originals” (intangible outputs) in pharma are listed with other research services at 18% with ITC. No new concessional entry appears in the 56th Council documents, so the rate stays 18%. |
| 998142 | Research and development originals in agriculture | 18% with ITC | 18% with ITC | This follows the same logic as 998141: SAC-wise research charts show 18% GST with ITC and the GST 2.0 changes do not introduce a different slab for these outputs. |
| 998143 | Research and development originals in biotechnology | 18% with ITC | 18% with ITC | Biotech research originals are treated as technical research services and taxed at 18% with ITC. The rationalised structure retains 18% as the standard services rate, with no explicit cut for this category. |
| 998144 | Research and development originals in computer related sciences | 18% with ITC | 18% with ITC | Computer-science research outputs fall in the same 9981 family. Existing rate references show 18% GST and there is no contrary entry in the 56th Council FAQ or press release, so 18% continues. |
| 998145 | Research and development originals in other fields n.e.c. | 18% with ITC | 18% with ITC | Residual R&D originals in other fields are also covered by the general research-services slab of 18% with ITC. They are not singled out for any special 5% treatment post-22 Sep 2025. |
Important Disclaimer
The entire content on this page has been arranged to the best of the author's understanding and is subject to periodic updates as per the law for the time being in force. The above does not constitute professional advice or a formal recommendation. While due care has been taken in preparing this content, the existence of mistakes and omissions cannot be ruled out. BUSY Infotech Private Ltd. and its associates will not be held responsible for any loss or damage arising from any inaccurate or incomplete information in this document. We recommend consulting a professional tax consultant before acting on the information contained in this piece of content.
Explore GST Rates
Explore HSN Codes