Scientific Research Services Under SAC Code 998145
Scientific research services cover specialised R and D across physics, chemistry, engineering and industrial R and D projects. Service providers run experiments, simulations and pilot trials to help businesses develop new products, improve processes and solve technical problems. Under GST, these scientific research services are classified under SAC 998145. This SAC code and its GST rate decide how GST is charged on scientific research contracts, lab service bills and long term R and D assignments.
Scientific Research Services GST Rate for SAC Code 998145
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 998145, 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 |
|---|---|---|---|---|
| 998145 | Research and development originals in other fields n.e.c. | 18% with ITC | 18% with ITC | Residual R&D originals in other fields are also covered by the general research-services slab of 18% with ITC. They are not singled out for any special 5% treatment post-22 Sep 2025. |
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.
Below is a list of related 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
Scientific research services under SAC 998145 cover wider industrial R and D across many scientific and engineering fields. Commercial research contracts usually fall under the 18% slab with input tax credit, subject to any special notification. Organisations should map projects to SAC 998145 where appropriate, apply the proper GST rate in %, disclose GST clearly and align GST returns so that both service providers and clients are comfortable during GST assessments.
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 998145 in GST for scientific research?
SAC 998145 covers scientific and industrial R&D services that are multi disciplinary but do not fit specific earlier R&D codes. It includes broad scientific research assignments for industry or government that involve experiments, modelling, pilot plants or prototypes to solve complex technical problems or develop new technologies.
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Does SAC 998145 cover industrial and multi disciplinary R&D services?
Yes. When a project combines several scientific and engineering fields to address industrial challenges such as energy efficiency, pollution control or process optimisation, it may fall under SAC 998145. The key feature is organised research leading to new knowledge, methods or technologies helpful for industrial or commercial use.
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What GST rate applies to scientific research under SAC 998145?
Scientific research services under SAC 998145 are usually taxed at 18%. GST is charged on project fees and related charges. Where research is supplied as export of services to overseas clients, zero rating rules may apply. Parties should check current GST provisions for research activities in their specific context.
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Can government or private labs both use SAC 998145?
Both government and private labs can use SAC 998145 when they provide taxable research services against consideration. If work is done as part of sovereign or statutory functions without consideration, GST may not apply. Contracts, funding arrangements and nature of activity decide whether GST and SAC classification are relevant.
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Is ITC available on services billed under SAC 998145?
Registered recipients can usually claim ITC on GST paid for SAC 998145 services where research supports their taxable business supplies. If outputs are exempt or used for non business, ITC is restricted. Keeping clear records of how research results feed into products, processes or services is important for audits.