9961 SAC Code: Services in wholesale trade
SAC Code 9961 falls within the category of Services in Wholesale Trade in the Services Accounting Code (SAC) system. Developed by the Indian government, the SAC system serves as a classification framework for services, ensuring accurate taxation. SAC Code 9961 covers a broad spectrum of professional and technical services rendered by individuals or businesses, encompassing transportation, advisory, and other specialized services.
Scope of SAC Code 9961
Services in wholesale trade fall under the SAC code 9961. The different services in wholesale trade are as follows:
- Transportation of goods: This covers both road transportation and transportation by rail, air, or sea.
- Storage and warehousing of goods (SAC code: 99613): This involves the safekeeping and management of goods.
- Marketing and promotion services: These activities focus on advertising, branding, and promotional efforts to boost sales.
- Other services in wholesale trade: This category encompasses various additional services such as inventory management, logistics coordination, supply chain optimization, and business consulting.
Categorisation of SAC Code 9961
SAC Code 9961 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 |
|---|---|---|---|---|
| 9961 | Service provided by Fair Price Shops to Central Government by way of sale of wheat, rice and coarse grains under Public Distribution System(PDS) against consideration in the form of commission or margin. | 0% without ITC | 0% without ITC | Commission or margin earned by Fair Price Shop (FPS) dealers for distributing specified foodgrains under the Public Distribution System to the Central Government is exempt. The goods (wheat, rice, coarse grains) are separate; this entry is only for the service portion (commission / margin). The exemption continues in GST 2.0 and is not affected by the slab rationalisation. |
| 9961 | Service provided by Fair Price Shops to State Governments or Union territories by way of sale of kerosene, sugar, edible oil, etc. under Public Distribution System (PDS) against consideration in the form of commission or margin. | 0% without ITC | 0% without ITC | Similar exemption for FPS dealers’ commission / margin when they distribute kerosene, sugar, edible oil and other notified PDS items for State Governments / Union territories. This remains fully exempt before and after 22 Sep 2025. |
| 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% with ITC | 18% with ITC | These are service components of wholesale trading (no ownership in goods, only brokerage / commission). They are treated as standard taxable services at 18% with ITC. No specific concessional or special 12% / 28% slab was notified here, so GST 2.0 does not change the rate. |
| 996111 | Services provided for a fee/commission or contract basis on wholesale trade | 18% with ITC | 18% with ITC | Commission based wholesale trade service under 9961 continues at 18% with ITC. No entry for 996111 appears in Annexure III of the 56th Council press release, so the rate is treated as unchanged under the existing 11/2017 structure. |
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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.
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Frequently Asked Questions
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What does SAC Code 9961 cover?
SAC 9961 covers services in wholesale trade provided for a fee or commission. It includes services of commission agents, commodity brokers, auctioneers and wholesale marketplaces that arrange large volume sales between manufacturers, importers and big buyers without themselves owning the goods.
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What is the GST rate for services under SAC Code 9961?
Services under 9961 are generally taxed at 18 %. The commission or service fee charged by the wholesale agent is taxable. The underlying sale of goods is taxed separately under HSN codes on the seller’s invoice and does not change the service rate.
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Is commission earned in wholesale trade covered under SAC Code 9961?
Yes. Commission earned for arranging wholesale deals, such as between manufacturers and distributors, is covered under 9961. The agent charges GST at 18 % on the commission amount and can claim ITC on eligible costs like office rent and communication expenses.
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Do businesses need to mention SAC Code 9961 on wholesale service invoices?
Wholesale agents, brokers and auctioneers should mention SAC 9961 on invoices raised for their commission or service charges. This helps their clients book the expense under the correct SAC and claim ITC where eligible.
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What is the HSN or SAC description for 9961?
The description is “Services in wholesale trade”. It clearly notes that sale or purchase of goods is not included. Only services like commission based dealing, broking, auctioning and trading on behalf of others for a fee are covered.
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Which businesses commonly use SAC Code 9961?
Commission agents in wholesale markets, commodity brokers, wholesale auction houses, large B2B trading platforms and buying agents for big retailers usually use SAC 9961 when billing their service charges on wholesale transactions.