Commission Services Under SAC Code 996211
Commission services under retail trade cover earning commission or fee for arranging sales between suppliers and end customers without taking ownership of the goods. Agents and intermediaries help generate orders, coordinate delivery and support payment collection. Under GST, such retail commission and fee based trade services are classified under SAC 996211. This SAC code and its GST rate decide how much GST is charged and how the value is recorded in GST returns.
Commission Services GST Rate for SAC Code 996211
Commission services in retail trade, including fee based retail trade services, are treated as intermediary or commission agent services under GST. Earlier, different ways of showing commission, discounts and trade margins sometimes produced different effective tax outcomes for similar arrangements, which made compliance more difficult for agents and principals.
After the September 2025 changes, most commission and fee based retail trade services under SAC 996211 generally come under the 18 percent slab with input tax credit. This standard rate applies where agents earn commission for arranging sales without owning the goods, unless a specific notification prescribes a different rate or exemption for a particular scheme.
The table below summarises the present GST rate for services under SAC code 996211.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 996211 | Services provided for a fee/commission or contract basis on retail trade | 18% with ITC | 18% with ITC | 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. |
When raising invoices for services under SAC 996211, commission agents should clearly show the taxable value of their commission and charge 18 percent GST so that eligible business clients can claim input tax credit wherever allowed. The same SAC code and rate should also be used in GSTR 1 and GSTR 3B while reporting the tax liability on commission services.
Conclusion
Commission services under SAC 996211 cover earning commission or fee for arranging sales between suppliers and end customers without taking ownership of the goods. These services are now generally taxed at 18 percent with input tax credit after the September 2025 changes. Agents and principals should make sure that such arrangements are correctly classified under this SAC code, apply the proper GST rate on every invoice and keep the same classification in GST returns. For cross border or complex agency structures, it is sensible to review the latest GST rules and consult a tax expert.
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
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What does SAC code 996211 cover in GST?
SAC 996211 covers retail trade services provided for a fee, commission or on contract basis. It typically applies where an agent, broker or platform arranges retail sales of goods to final consumers and charges commission or service charges instead of owning and reselling the goods.
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Does SAC 996211 include commission and fee-based trade services?
Yes. Commission agents, franchisees and marketplace operators who coordinate retail sales for a commission often fall under SAC 996211. The key point is that they facilitate retail transactions for others rather than buying and selling goods on their own account as principal.
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What is the GST rate on commission services under SAC 996211?
Commission or fee-based retail trade services under SAC 996211 usually attract 18% GST with ITC. The tax is charged on the commission amount, platform fee or service charge. If the underlying goods are exempt, the commission service can still be taxable separately at 18%.
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Should agents on sales commission use SAC 996211 on invoices?
Agents and platforms earning commission from retail sales should generally mention SAC 996211 on their invoices for clarity and compliance. This helps distinguish their service income from the sale of goods and ensures the correct treatment of GST and ITC for both parties.
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Is ITC available on commission services billed under SAC 996211?
Businesses receiving taxable commission services under SAC 996211 can usually claim ITC, provided they use the services to make taxable outward supplies and meet documentation and payment conditions. ITC is not available where the recipient makes exempt supplies or falls under schemes that specifically disallow credit.