Beverage Services Under SAC Code 996339
Beverage services cover preparing and serving drinks such as tea, coffee, juices and soft drinks through cafes, kiosks, counters and mobile units. Operators may also provide light snacks along with beverages. Under GST, these beverage focused food service activities are classified under SAC 996339. This SAC code and its GST rate decide how much GST is charged on beverage bills. This helps outlets serve quick refreshment options for customers throughout the day.
Beverage Services GST Rate for SAC Code 996339
Beverage services under SAC 996339 are treated as restaurant style or catering services under GST. Initially, different ways of combining drinks and snacks led to confusion on whether lower or higher slabs should apply.
After the September 2025 rationalisation, most standard catering, contract food and beverage services under these codes generally fall in the 5 percent slab without input tax credit where they operate like regular restaurant or catering services. In some structured or input intensive models, 18 percent with input tax credit can apply as per the latest notifications.
The table below explains the current GST rate applicable to SAC code 996339 for typical services.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 996339 | Other food, edible preparations, alcoholic & non-alcoholic beverages serving services n.e.c. | 18% with ITC | 18% with ITC | Residual food serving category. Typical rate remains 18% with ITC, unless a separate exemption / concession applies. |
While issuing invoices under this SAC code, service providers should clearly show the taxable value of food and service charges, the GST rate and the tax amount so that clients understand the bill clearly. The same SAC code and rate pattern should be used in GSTR 1 and GSTR 3B for outward supplies to keep GST records consistent and easy to justify.
Explore Other SAC Codes Under 9963
This SAC code is part of the accommodation, food and beverage services group 9963, which covers hotel stays, hostels and PGs, student residences, restaurant services, catering services and other hospitality activities. Each six digit SAC within this group is meant to capture a specific type of stay or food service so that GST reporting becomes more accurate.
Below are the major related six-digit SAC codes under parent 9963
In daily use, businesses should select the SAC code that best matches the main nature of their service. If the focus is more on room accommodation, restaurant food, large event catering or contract meal supply, another SAC within 9963 may be more suitable. Correct SAC selection and GST rate application help avoid future disputes, keep the input tax credit position clear and make GST records easier to justify during audits or departmental checks.
Conclusion
Beverage services under SAC 996339 cover supplying tea, coffee, juices and soft drinks through cafes, kiosks and service counters, often with light snacks. These services now generally fall in the 5 percent GST slab without input tax credit for typical restaurant style setups and 18 percent with input tax credit for certain structured catering models. Operators should classify their outlet correctly, apply the right GST rate on every invoice and keep consistent reporting in GST returns. For franchise or bundled service models, it is sensible to review the latest GST guidance and seek professional advice.
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 is SAC code 996339 in GST?
SAC 996339 covers other food, edible preparations and beverage serving services not classified elsewhere. It is a residual category for stand alone beverage counters, snack bars and similar service formats that do not neatly fit restaurant or canteen codes.
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Does SAC 996339 cover beverage service and drink catering for events?
Yes. Dedicated juice counters, coffee bars or soft drink stalls at events, fairs or malls can be grouped under SAC 996339 when their main service is serving beverages rather than full meals.
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What GST rate applies to beverage services under SAC 996339?
Beverage services generally follow food service slabs, with 5% without ITC common for simple non alcoholic drinks and 18% or higher for certain alcoholic or special setups, depending on notification rules and separate state levies.
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Should stand alone beverage counters at events use SAC 996339?
Yes. If a counter only serves beverages and does not operate like a full restaurant or regular bar, SAC 996339 is often a suitable classification. It separates such supplies from main catering or hall rental codes on the same event.
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Can businesses claim ITC on services billed under SAC 996339?
Where beverage services are taxable and used for business events or hospitality with allowed ITC, recipients may claim credit, except for blocked cases like alcoholic beverages and certain staff welfare uses. Providers under 5% without ITC cannot claim credits on related inputs.