Services Under SAC Code 998223
Payroll services handle monthly salary processing, statutory deductions and employee payouts for a business. Teams calculate gross and net pay, compute TDS, PF, ESI and other deductions and prepare salary sheets and payslips. Many MSMEs outsource payroll processing to avoid errors and penalties. Under GST, these payroll services are classified under SAC 998223. This SAC code and its GST rate decide how GST applies on payroll processing and employee salary management service fees.
Services GST Rate for SAC Code 998223
Accounting, payroll and business support services under these SAC codes are treated as professional services under GST. The taxable value usually includes service fees, monthly retainers and processing charges, excluding any government fees or statutory payments that are collected from clients and paid to authorities at actuals.
After the September 2025 rationalisation, most taxable accounting and business support services that are not specifically exempt are generally placed in the 18% slab with input tax credit for registered business clients. Any special schemes or reverse charge situations notified for particular recipients should be reviewed carefully before finalising how GST will be charged.
The table below summarises the prevailing GST treatment for SAC code 998223, showing the standard 18% slab for taxable accounting and business support services and any notified special cases.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 998223 | Payroll services | 18% with ITC | 18% with ITC | Treated as a professional service under 9982 and taxed at 18%; FAQs on legal and accounting SAC codes also confirm 18% for payroll. No change notified in GST 2.0 proposals. |
Accounting firms and service providers using this SAC code should clearly mention their service value, GST rate in % and GST amount on tax invoices. The same SAC and rate should be followed in GSTR 1 and GSTR 3B so that clients can book expenses correctly and claim input tax credit without confusion.
Explore Other SAC Codes Under 9982
These SAC codes fall under the legal and accounting services group 9982, which covers legal advisory, court representation, tax consulting, financial auditing, accounting, payroll and wider business support services. Each six digit SAC within this group points to a specific type of professional service for GST classification.
The list below highlights key six-digit SAC codes under 9982.
Law firms, CA firms and business service providers should select the SAC that best describes their main engagement, such as accounting services, payroll services, business support services or corporate and personal tax consulting. 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
Payroll services under SAC 998223 include monthly salary computation, statutory deductions and preparation of salary statements and payslips. Fees for such payroll processing work normally fall in the 18% GST slab with input tax credit for eligible business recipients. Payroll service providers should mention SAC 998223 on invoices, charge GST at the right rate in %, and maintain consistent reporting in GSTR 1 and GSTR 3B.
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.