Arbitration Services Under SAC Code 998215
Arbitration services provide an alternate dispute resolution mechanism where a neutral arbitrator hears both sides and gives a binding decision outside regular courts. Many commercial contracts today include arbitration and conciliation clauses to settle disputes faster and in a more flexible way. These services also cover mediation and conciliation support. Under GST, such arbitration services are classified under SAC 998215. This SAC code and its GST rate decide how GST is charged on arbitration and conciliation fees.
Arbitration Services GST Rate for SAC Code 998215
Patent filing, legal documentation, arbitration and wider legal support services under these SAC codes are treated as professional legal and related services under GST. The taxable value usually covers professional fees, retainers, drafting charges and case based service fees, excluding any court fees, registration fees or statutory payments that are collected from clients and paid to authorities at actuals.
After the September 2025 rationalisation, most taxable legal and professional services that are not covered by a special exemption generally fall in the 18% slab with input tax credit for eligible registered recipients. Certain services to specific categories of clients may still be under reverse charge or enjoy special treatment as per updated GST notifications, so practitioners should review those rules carefully before deciding how to charge GST.
The table below summarises the broad GST treatment for SAC code 998215, indicating the usual 18% slab for taxable professional services and areas where special notified treatment may apply
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 998215 | Arbitration and conciliation services | 0% without ITC or 18% with ITC | 0% without ITC or 18% with ITC | Arbitration and conciliation services are listed at 18% in SAC-wise legal-service charts. The same notifications that exempt certain legal services to government allow narrow 0% cases; these continue post rationalisation, with no fresh 5% or 40% entry for arbitration. |
Service providers using this SAC code should clearly show their professional fees, GST rate in % and GST amount on tax invoices, along with details on whether forward charge or reverse charge applies. The same SAC and rate should be followed in GSTR 1 and GSTR 3B so that business clients can manage input tax credit and compliance smoothly.
Explore Other SAC Codes Under 9982
These SAC codes fall under the legal and accounting services group 9982, which covers legal advisory, court representation, arbitration, tax consulting, financial auditing and related professional services. Each six digit SAC within this group points to a specific type of legal, audit or professional service for GST classification.
Below is a list of related six-digit SAC codes under 9982.
Law firms, IP professionals and audit firms should select the SAC that most closely describes their main engagement, such as patent filing services, legal documentation, arbitration, legal support services or financial auditing services. Correct SAC selection and GST rate application in % make it easier for clients to book expenses, claim input tax credit where allowed and handle GST queries or audits confidently.
Conclusion
Arbitration services under SAC 998215 provide structured dispute resolution through arbitration, mediation and conciliation outside regular courts. Fees for such professional services are typically taxable at 18% with input tax credit for eligible business recipients, subject to any special conditions. Arbitrators and institutions should apply the proper GST rate in %, mention SAC 998215 on fee notes and ensure consistent reporting in GST returns.
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 998215 cover in GST?
SAC 998215 covers arbitration, mediation and other dispute resolution services. It includes settlement of commercial, civil or contractual disputes outside regular courts. Fees charged by arbitrators, mediators and dispute resolution institutions for hearings, awards and settlements are normally billed under this SAC in GST invoices.
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Does SAC 998215 include arbitration, mediation and dispute resolution services?
Yes. Services like appointment of arbitrator, conduct of hearings, writing awards, mediation meetings and facilitated settlements fall under SAC 998215. It covers both ad hoc and institutional proceedings where parties appoint a neutral person or panel to help resolve their commercial disputes in a structured process.
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What is the GST rate on arbitration services under SAC 998215?
Arbitration and mediation services under SAC 998215 are generally taxed at 18% when supplied to business entities. There can be specific exemptions or reverse charge conditions depending on who provides the service and who receives it. Parties should always check latest GST notifications before finalising tax position.
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Should commercial dispute settlements use SAC 998215 on invoices?
Yes. When professionals charge fees for resolving commercial disputes through arbitration or mediation instead of court litigation, invoices should normally mention SAC 998215. This applies whether the service is given by individual arbitrators, panels, professional institutions or mediation centres engaged for structured dispute resolution between business parties.
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Can parties claim ITC on services billed under SAC 998215?
Businesses can usually claim ITC on GST paid for SAC 998215 services if the dispute relates to their taxable business operations, such as supply contracts or projects. If the dispute is purely personal or linked to exempt activities, ITC may not be allowed. Proper documentation is important.