Wholesale Trade Services Under SAC Code 996111
Wholesale trade services cover buying goods in bulk from manufacturers or major suppliers and selling them on to retailers, institutional buyers and other businesses. Service providers focus on bulk ordering, storage, breaking bulk and distribution without selling directly to end consumers. Under GST, wholesale trade services are classified under SAC 996111. This SAC code and its GST rate decide how much GST is charged and how the value is reported in GST returns.
Wholesale Trade Services GST Rate for SAC Code 996111
Wholesale trade services, including bulk buying and wholesale distribution, are treated as services relating to the sale of goods under GST. Earlier, different ways of documenting margin, commission and service components sometimes led to confusion about the correct taxable value for wholesale trade services.
After the September 2025 rationalisation, most wholesale trade services under SAC 996111 generally fall in the 18 percent slab with input tax credit. This standard rate applies to margin based wholesale trade and pure service models, unless a specific notification prescribes a different rate or exemption for a particular product or scheme.
The table below gives the latest applicable GST rate for SAC code 996111.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 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. |
When issuing invoices for services under SAC 996111, wholesalers should clearly show the taxable value of their service component and charge 18 percent GST so that eligible business customers can claim input tax credit correctly. The same SAC code and rate should also be used in GSTR 1 and GSTR 3B while reporting the tax liability on wholesale trade services.
Conclusion
Wholesale trade services under SAC 996111 cover buying goods in bulk and selling them onwards to retailers and institutional buyers without directly serving end consumers. These services are now generally taxed at 18 percent with input tax credit after the September 2025 changes. Wholesalers and their clients should ensure that such services are properly classified under this SAC code, apply the correct GST rate on every invoice and keep the same treatment in GST returns. For products with special GST rules, it is wise to check the latest notifications and consult a tax professional.
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.
Frequently Asked Questions
-
What is SAC code 996111 in GST?
SAC 996111 covers wholesale trade services provided for a fee, commission or on contract basis. It applies to intermediaries and agents who arrange wholesale purchases or sales of goods for others, without taking ownership of the goods, and charge commission or service fees.
-
Does SAC 996111 cover wholesale trade and distribution services?
Yes. When a business acts as a wholesale distributor, commission agent or broker arranging large quantity sales between manufacturers and retailers, its service component is classified under SAC 996111. The underlying goods have their own HSN, but the agency or distribution service uses this SAC.
-
What GST rate applies to services under SAC 996111?
Commission-based wholesale trade services under SAC 996111 are generally taxed at 18% with ITC, as they fall under the standard service rate unless a special notification provides a different rate for particular sectors. The GST is charged on the commission or service fee, not on full goods value.
-
When should a business use SAC 996111 instead of retail trade codes?
A business should use SAC 996111 when it provides services linked to wholesale trade, such as arranging bulk sales to retailers or institutional buyers for a fee or commission. Retail trade service codes are used when services relate mainly to direct sales to final consumers.
-
Can wholesalers claim ITC on services billed under SAC 996111?
Yes. Wholesalers and commission agents making taxable outward supplies can usually claim ITC on GST paid on eligible inputs and input services, including services charged under SAC 996111. ITC is restricted only where general GST law blocks credit, such as on certain personal expenses or specifically disallowed items.