Agricultural R&D Under SAC Code 998142

Agricultural R&d services focus on developing new ideas, methods and technologies for farming and allied activities. In real life, agribusinesses, seed companies, fertiliser manufacturers and research bodies use these services to test better crop varieties, improve soil health practices and design sustainable farming systems.

SAC 998142 is used when the core assignment relates to creation of agricultural r&d originals to improve crops and farming methods. It covers end to end agricultural research projects, from planning experiments and conducting field trials to analysing results and documenting findings for future use by farmers and agri businesses.

Classifying these assignments under the correct SAC code gives clarity on how GST is applied on research fees and helps both parties keep a clean trail of the services received and delivered.

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998142 SAC Code GST Rate

Review old and new GST rates for Agricultural R&D under 998142 SAC Code.

From a GST point of view, agricultural r&d fees are treated as supply of services. The taxable value usually includes project based fees, milestone payments, retainers and any related support charges that form part of the same research mandate.

After the September 2025 GST revision, most research and development services that do not have any special exemption notification continue to fall under the standard 18% slab. Registered business recipients can generally claim input tax credit when these services are used for making taxable supplies or for business decision making, subject to normal ITC conditions.

The table below summarises the latest standard GST rate for SAC code 998142.

SAC Code

998142

Description

Research and development originals in agriculture

New Rate

18 %
Standard

Old Rate

18 %

Notes

This follows the same logic as 998141: SAC-wise research charts show 18% GST with ITC and the GST 2.0 changes do not introduce a different slab for these outputs.

In practice, organisations that provide agricultural r&d should apply 18% GST on the taxable value, quote SAC 998142 on tax invoices and keep the same classification in their GST records so that project billing and input tax credit tracking stay simple.

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Explore More SAC Codes Under 9981

Practical Classification Guidance

When selecting a code from the 9981 group, service providers should choose the SAC that best describes the main research area, whether it is agricultural r&d or another branch of study. Correct use of the six digit SAC and GST rate in % keeps research contracts, billing and ITC planning clear for both the provider and the client.

Conclusion

SAC 998142 is meant for agricultural r&d where structured agricultural research work is carried out for a client in return for professional fees. These services are generally taxed at 18% under GST, with ITC normally available to eligible registered recipients when the research supports their taxable business activities. By using SAC 998142 consistently and applying the correct GST rate in %, organisations can keep their research mandates, invoices and GST compliance neat and easy to explain during reviews.

Frequently Asked Questions

Clear answers to common queries about SAC Code 998142 and GST compliance.

What does SAC code 998142 cover in GST?

SAC 998142 covers creation of agricultural R&D originals. This includes new crop varieties, hybrids, seeds, farming technologies and innovative agronomic practices developed through research projects. The focus is on generating original, commercially usable agricultural innovations that can be registered, licensed or sold to farmers and agribusinesses.

Does SAC 998142 include creation of agricultural R&D originals like new crop varieties and farming methods?

Yes. When work results in clearly defined agricultural innovations such as new seed lines, disease resistant crops, efficient irrigation systems or improved farming packages of practice, it is usually classified under SAC 998142. The output is more than a study. It creates tangible, repeatable technology that others can adopt.

What GST rate applies to agricultural R&D originals under SAC 998142?

Agricultural R&D original creation under SAC 998142 is generally taxed at 18%. GST is charged on development fees, licence charges and technology transfer payments. Parties should review whether any government or agricultural development schemes offer special treatment, but in most commercial contracts, standard service rate is applied.

Should seed companies and agri tech firms bill innovation projects using SAC 998142?

Seed companies, agri tech firms and research institutes that develop new varieties or farm technologies for commercial use should normally bill those innovation projects under SAC 998142. This classification helps distinguish creation of new technology from routine consulting, training or basic field trials, which use other SAC codes.

Can businesses claim ITC on GST paid for SAC 998142 services leading to commercial agri products?

Businesses can usually claim ITC on GST paid for SAC 998142 services when the resulting seeds, inputs or technologies are sold as taxable supplies. If innovations are used for exempt farming or non business projects, ITC may not be allowed. Agreements and internal records should clearly show commercial intent.

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.