9962 SAC Code: Services in retail trade

SAC Code 9962 belongs to the Services in retail trade category in the Indian Services Accounting Code (SAC) system. Developed by the government, this system ensures accurate taxation by providing a classification framework for services. SAC Code 9962 specifically excludes the sale or purchase of goods.

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Categorisation of SAC Code 9962

SAC Code 9962 under GST can be classified in the following ways:

SAC Code

9962

Description

Services in retail trade. Explanation – This service does not include sale or purchase of goods

New Rate

18 %
Standard

Old Rate

18 %

Notes

Retail trade “services” under 9962 cover agency / commission based retail facilitation, not normal sale of goods. These service elements are also taxed at 18% with ITC as standard. They are not part of any 12% or 28% special slab, so they stay at 18% after the new regime.

SAC Code

9962

Description

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.

New Rate

0 %
Exempted

Old Rate

0 %

Notes

Same PDS commission exemption as under 9961, but classified under retail trade when the FPS activity is treated as retail distribution. Commission / margin for FPS dealers distributing wheat, rice, coarse grains under PDS to Central Government is exempt; this continues unchanged.

SAC Code

9962

Description

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.

New Rate

0 %
Exempted

Old Rate

0 %

Notes

The mirror of the previous row: FPS commission / margin for kerosene, sugar, edible oil and similar items under PDS for State Governments / UTs is exempt. No change in GST 2.0.

SAC Code

996211

Description

Services provided for a fee/commission or contract basis on retail trade

New Rate

18 %
Standard

Old Rate

18 %

Notes

Retail trade commission services under 9962 are generally taxed at 18% with ITC. The 56th Council does not show any “From – To” change for 996211, so the rate remains same.

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Scope of SAC Code 9962

The scope of SAC Code 9962, which falls under the category of Services in retail trade, encompasses a wide range of services related to retail operations. Some key areas covered under SAC Code 9962 may include:

  • Retail store operations: This includes activities such as managing and operating physical retail stores, handling customer inquiries, product demonstrations, and sales transactions.
  • Point of sale (POS) services: These services involve the use of electronic systems for processing sales transactions, managing inventory, and generating sales reports.
  • Customer support and assistance: Services related to providing customer support, resolving queries or complaints, offering product guidance, and ensuring customer satisfaction.
  • Visual merchandising and store layout: Services focused on arranging and presenting merchandise in an appealing and organized manner to enhance the shopping experience and drive sales.
  • Inventory management: Services related to inventory tracking, stock replenishment, and managing stock levels to ensure availability of products.
  • Retail promotions and marketing: Services encompassing advertising, promotional campaigns, loyalty programs, and other marketing initiatives to attract customers and increase sales.

Frequently Asked Questions

Clear answers to common queries about SAC Code 9962 and GST compliance.

What does SAC Code 9962 cover?

SAC 9962 covers services in retail trade provided for a fee or commission. It includes services of agents or intermediaries who arrange sales between retailers and customers, where they do not own the goods and earn a commission or service fee instead of trading margin.

What is the GST rate for SAC Code 9962 services?

Services under 9962 are generally taxed at 18 %. This applies to commission based retail services where the agent or platform receives a fee or commission for facilitating sales, but does not themselves buy and sell the goods as a trader.

Do retailers need to use SAC Code 9962 on invoices?

Retailers who sell goods on their own account show HSN codes for goods, not SAC 9962. Retail agents, marketplace operators or commission agents who earn only a service fee should use 9962 on invoices for their commission or service charges.

Is commission earned in retail trade covered under SAC 9962?

Yes. Commission earned for arranging retail sales, such as by agents, brokers or online platforms, normally falls under 9962. The commission amount is taxable at 18 % and the agent can claim ITC on eligible inputs used for providing these services.

What is the official description of SAC Code 9962?

The description is “Services in retail trade, not including sale or purchase of goods”. It clearly states that only the service element, such as facilitating or arranging retail trade for a fee or commission, is covered, not the actual trading of goods.

Which businesses typically fall under SAC Code 9962?

Commission agents working for retailers, marketplace platforms charging sellers a fee, franchise operators that only earn service fees, and other intermediaries who help in retail sales without owning the stock usually classify their service income under SAC 9962.

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.

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