Biotechnology Research Services Under SAC Code 998143
Biotechnology research services focus on advanced R and D in life sciences, including genetic research, bio process development and biotech R and D for new therapies and products. Specialist teams run labs, clinical studies and pilots for pharma, agriculture and industrial clients. Under GST, these biotechnology research services are classified under SAC 998143. This SAC code and its GST rate decide how GST is charged on biotech research projects and retainers.
Biotechnology Research Services GST Rate for SAC Code 998143
Biotechnology, computer science and scientific research activities under these SAC codes are treated as research and development services under GST. The taxable value normally includes research fees, milestone payments and retainers billed to clients for R and D work, excluding any clearly identified government taxes or out of pocket expenses charged at actuals.
After the September 2025 rationalisation, regular commercial research and development services that are not covered by a special exemption are generally placed in the 18% slab with input tax credit for registered business clients. Certain government funded or educational research projects may continue to enjoy concessional or special treatment as per the latest GST notifications, so providers should check those conditions carefully.
The table below explains the prevailing GST treatment for SAC code 998143, showing the standard 18% slab for taxable research services and cases where notified benefits may apply.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 998143 | Research and development originals in biotechnology | 18% with ITC | 18% with ITC | Biotech research originals are treated as technical research services and taxed at 18% with ITC. The rationalised structure retains 18% as the standard services rate, with no explicit cut for this category. |
Research organisations and R and D service providers using this SAC code should mention the SAC, taxable value, GST rate in % and tax amount clearly on invoices. The same classification and rate should be followed in GSTR 1 and GSTR 3B so that business clients can claim input tax credit properly and defend the treatment during any GST audit or review.
Explore Other SAC Codes Under 9981
These SAC codes fall under the wider research and development services group 9981, which covers biotechnology research, computer science research, scientific research services and other specialised R and D activities. Each six digit SAC within this group identifies a different research focus area for GST classification and reporting.
The list below highlights key six-digit SAC codes under 9981.
Universities, labs and private research organisations should choose the SAC that best describes the main research work, for example biotechnology research, computer science research or broader scientific research services. Using the correct SAC and GST rate in % helps clients understand the tax treatment, supports clean input tax credit flow and reduces the chance of disputes during GST assessments.
Conclusion
Biotechnology research services under SAC 998143 cover advanced life science R and D, including genetic research and bio process development for pharma, agriculture and industrial clients. These services are usually taxable at 18% with input tax credit for business customers, except where a specific exemption or concessional scheme applies. Providers should apply the correct GST rate in %, mention SAC 998143 on invoices and keep consistent treatment in GST returns so that clients can justify input tax credit during any GST review.
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 998143 in GST?
SAC code 998143 is used to classify biotechnology research and development services under GST It helps suppliers describe the service correctly on invoices and returns Choose it when the main supply matches this category and no more specific SAC fits Accurate classification reduces disputes during audits and improves reporting consistency
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Does SAC 998143 cover R&D services for biotechnology and life sciences innovations?
Yes SAC 998143 generally includes services that match biotechnology research and development services as described in the contract and invoice Include only the core activities covered by this category If the service is mainly another specific activity use the more specific SAC instead Always align the SAC with actual deliverables
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What GST rate applies to biomedical research services under SAC 998143?
For most services under this code GST is commonly 18% but confirm the rate based on the exact nature of supply Check place of supply rules exemptions and any special conditions in notifications Apply GST on the taxable value shown in the invoice If you bundle multiple services the principal
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Should biotech labs bill contract research projects using SAC 998143?
Use SAC 998143 when your service clearly fits biotechnology research and development services and other detailed SAC options do not describe it better If you provide a specific named service like broadband access security guarding or payroll processing prefer the dedicated SAC Document your reasoning in case of future queries
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Can pharma or life science companies claim ITC on GST paid for SAC 998143 services?
Yes registered businesses can usually claim ITC on GST charged under SAC 998143 if the service is used for business and linked to taxable supplies The supplier must upload the invoice and you must pay the tax Follow ITC conditions like invoice matching receipt of service and blocked credit rules