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.

Live Demo Available Today

Experience the power of Expert Accounting

Join our guided walkthrough to see how BUSY can transform your business operations.

Trusted by 6,00,000+ Users
4.6 Google Rating
+91
expand_more

* No credit card required

Categorisation of SAC Code 9981

SAC Code 9981 under GST can be classified in the following ways:

SAC Code

9981

Description

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.

New Rate

0 %
Exempted

Old Rate

0 %

Notes

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.

SAC Code

998111

Description

Research and experimental development services in natural sciences

New Rate

18 %
Standard

Old Rate

18 %

Notes

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.

SAC Code

998112

Description

Research and experimental development services in engineering and technology

New Rate

18 %
Standard

Old Rate

18 %

Notes

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.

SAC Code

998113

Description

Research and experimental development services in medical sciences and pharmacy.

New Rate

18 %
Standard

Old Rate

18 %

Notes

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.

SAC Code

998114

Description

Research and experimental development services in agricultural sciences.

New Rate

18 %
Standard

Old Rate

18 %

Notes

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.

SAC Code

998121

Description

Research and experimental development services in social sciences.

New Rate

18 %
Standard

Old Rate

18 %

Notes

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.

SAC Code

998122

Description

Research and experimental development services in humanities

New Rate

18 %
Standard

Old Rate

18 %

Notes

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.

SAC Code

998130

Description

Interdisciplinary research and experimental development services.

New Rate

18 %
Standard

Old Rate

18 %

Notes

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.

SAC Code

998141

Description

Research and development originals in pharmaceuticals

New Rate

18 %
Standard

Old Rate

18 %

Notes

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%.

SAC Code

998142

Description

Research and development originals in agriculture

New Rate

18 %
Standard

Old Rate

18 %

Notes

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.

SAC Code

998143

Description

Research and development originals in biotechnology

New Rate

18 %
Standard

Old Rate

18 %

Notes

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.

SAC Code

998144

Description

Research and development originals in computer related sciences

New Rate

18 %
Standard

Old Rate

18 %

Notes

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.

SAC Code

998145

Description

Research and development originals in other fields n.e.c.

New Rate

18 %
Standard

Old Rate

18 %

Notes

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.

Stop worrying about SAC & GST compliance

BUSY auto-applies the correct SAC codes & GST rates, ensuring 100% error-free billing every single time.

Automatic Updates
Error-free GSTR
6,00,000+ Happy Users
+91
expand_more

* No credit card required

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.

Frequently Asked Questions

Clear answers to common queries about SAC Code 9981 and GST compliance.

What does SAC Code 9981 cover?

SAC 9981 covers research and development services. It includes scientific research, market research, product development, experimental development in fields like pharmaceuticals, engineering, agriculture, medical sciences, social sciences and similar research activities done for clients or on contract.

What is the GST rate for services under SAC Code 9981?

Research and development services under 9981 are generally taxed at 18 % GST. Some R and D services done for recognised educational institutions or specific government projects can get special treatment or exemption, but by default these services are fully taxable.

Do companies need to mention SAC Code 9981 on R and D service invoices?

Yes. If your company provides research or product development services, you should show SAC 9981 on invoices, along with a clear description of the project or research activity and the applicable GST rate and amount, so the client can classify and claim ITC correctly.

Which businesses usually fall under SAC 9981?

R and D labs, design houses, contract research organisations, pharmaceutical and biotech R and D units, engineering design centres and market research agencies usually fall under 9981 when they carry out research projects for clients for a fee or on long term contracts.

Is TDS applicable to services classified under SAC 9981?

Yes. Payments for research services are often covered under section 194J as professional or technical services, where TDS of 10 % is usually deducted on the fee component. Some simpler survey contracts may be under section 194C. The section depends on the contract terms, not the SAC code.

Are any R and D services exempt from GST?

Some research services provided to recognised educational or government institutions for non commercial research may be exempt or attract concessional treatment, but these are limited and subject to strict conditions. Commercial contract research for private companies is usually fully taxable at 18 %.

Important Disclaimer

The above does not constitute professional advice or a formal recommendation. We recommend consulting a professional tax consultant before acting on the information contained in this piece of content.

Explore more GST Rates, HSN Codes