--- title: "Insolvency Services | Professional Insolvency Solutions" description: "Expert insolvency services covering compliant, reliable, and high-quality solutions tailored to your needs. SAC Code 998240." canonical: "https://busy.in/sac-code-998240/" --- # Insolvency under SAC Code 998240 Part of [SAC 9982: Legal & accounting services](https://busy.in/sac-code-9982/). Insolvency services cover professional support for businesses and individuals who are unable to repay their debts. Specialists handle insolvency proceedings, act as resolution professionals, manage assets and guide corporate restructuring so that value is protected as far as possible. These insolvency services often work closely with corporate restructuring services and legal advisors. Under GST, such insolvency services are classified under SAC 998240. This SAC code and its GST rate decide how GST is charged on insolvency and restructuring related professional fees. ## 998240 SAC Code GST rate Insolvency, liquidation and related restructuring support under this SAC code are treated as professional legal and accounting related services under GST. The taxable value usually covers professional fees, success fees and administration charges, excluding any statutory payments to regulators or courts that are collected from clients and deposited at actuals. After the September 2025 rationalisation, most taxable insolvency and restructuring services that are not specifically exempt are generally placed in the 18% slab with input tax credit for eligible registered recipients. Any reverse charge or special treatment notified for services to particular entities should be checked carefully before finalising how GST is to be charged. **The table below summarises the prevailing GST treatment for SAC code 998240, showing the standard 18% slab for taxable insolvency services and any notified special cases.** | SAC code | Description | New GST rate (from 22 Sep 2025) | Old GST rate (till 21 Sep 2025) | Notes | | --- | --- | --- | --- | --- | | 998240 | Insolvency and receivership services | 18% with ITC | 18% with ITC | Listed at 18% in legal-services schedules and in insolvency-specific GST explainers. No separate 5% or 40% entry exists for this code in the latest structure. | Insolvency professionals and firms using this SAC code should clearly show their fee value, GST rate in % and GST amount on tax invoices. The same SAC and tax treatment should be followed in GSTR 1 and GSTR 3B so that corporate clients can book expenses correctly and support their input tax credit during GST reviews. ## Practical classification guidance Law firms, insolvency professionals, CA firms and business service providers should pick the SAC that best matches their main service, such as insolvency services, accounting, payroll or corporate tax consulting. Correct SAC selection and GST rate application in % help clients book expenses properly, claim input tax credit where allowed and handle GST queries or audits with confidence. ## Conclusion Insolvency services under SAC 998240 cover insolvency resolution, liquidation handling and related restructuring support for stressed businesses and individuals. Professional fees for these services are usually taxable at 18% with input tax credit for eligible registered clients, subject to any notified conditions. Insolvency professionals should use SAC 998240 on their invoices, apply the correct GST rate in %, show GST amounts clearly and follow the same treatment in GST returns so that clients can defend their input tax credit during reviews. ## Frequently asked questions ### What does SAC code 998240 cover in GST? SAC 998240 covers insolvency, liquidation, bankruptcy and corporate restructuring services. It includes professional work of insolvency resolution professionals, liquidators and advisors who manage stressed companies, prepare resolution plans, handle asset sales and coordinate with creditors and tribunals during formal restructuring or winding up processes. ### Does SAC 998240 include insolvency, liquidation and restructuring services? Yes. Activities such as conducting creditor meetings, managing company affairs during insolvency, preparing information memoranda, inviting resolution plans and overseeing distribution of sale proceeds generally fall under SAC 998240. The services are often provided under statutory frameworks like insolvency law by registered professionals or specialised firms. ### What is the GST rate on insolvency services under SAC 998240? Insolvency and liquidation services under SAC 998240 are usually taxed at 18%. GST is levied on professional fees or success based consideration received by resolution professionals or firms. There may be clarifications on whether GST is paid from company assets or the professional, which should be checked carefully. ### Should corporate resolution professionals use SAC 998240 on bills? Yes. When resolution professionals, liquidators or restructuring advisors raise invoices for their work on stressed companies, they normally use SAC 998240. This ensures appropriate classification of such specialised services separate from general management consulting, legal or financial advisory which are covered under other SAC codes in GST. ### Can businesses claim ITC on services billed under SAC 998240? Where the stressed company is registered and continues as a taxable entity, GST paid for SAC 998240 services may be eligible for ITC, subject to conditions and actual usage. In liquidation, treatment can be complex. Professionals should review latest GST guidance and maintain transparent records for stakeholders. ## Explore more ### Other SAC services under 9982 - [998211: Legal Advisory](https://busy.in/sac-code-998211/) - [998212: Legal Advisory](https://busy.in/sac-code-998212/) - [998213: Patent Filing](https://busy.in/sac-code-998213/) - [998214: Legal Documentation](https://busy.in/sac-code-998214/) - [998215: Arbitration](https://busy.in/sac-code-998215/) - [998216: Legal Support](https://busy.in/sac-code-998216/) - [998221: Financial Auditing](https://busy.in/sac-code-998221/) - [998222: Accounting](https://busy.in/sac-code-998222/) - [998223: Payroll](https://busy.in/sac-code-998223/) - [998224: Business Support](https://busy.in/sac-code-998224/) - [998231: Corporate Tax Consulting](https://busy.in/sac-code-998231/) - [998232: Personal Tax Planning](https://busy.in/sac-code-998232/) ### All SAC headings - [99: All Services Accounting](https://busy.in/sac-code-99/) - [9954: Services in building & construction](https://busy.in/sac-code-9954/) - [9961: Services in wholesale trade](https://busy.in/sac-code-9961/) - [9962: Services in retail trade](https://busy.in/sac-code-9962/) - [9963: Accommodation, food & beverage services](https://busy.in/sac-code-9963/) - [9964: Passenger transport services](https://busy.in/sac-code-9964/) - [9965: Goods transport services](https://busy.in/sac-code-9965/) - [9966: Rental services of transport vehicles](https://busy.in/sac-code-9966/) - [9967: Supporting services in transport](https://busy.in/sac-code-9967/) - [9968: Postal & courier services](https://busy.in/sac-code-9968/) - [9969: Electricity, gas & water supply services](https://busy.in/sac-code-9969/) - [9971: Financial & related services](https://busy.in/sac-code-9971/) - [9972: Real estate services](https://busy.in/sac-code-9972/) - [9973: Leasing or rental services](https://busy.in/sac-code-9973/) - [9981: Research & development services](https://busy.in/sac-code-9981/) - [9982: Legal & accounting services](https://busy.in/sac-code-9982/) - [9983: Professional, technical & business services](https://busy.in/sac-code-9983/) - [9984: Telecommunications & broadcasting supply services](https://busy.in/sac-code-9984/) - [9985: Support services to business](https://busy.in/sac-code-9985/) - [9986: Support services to agriculture, hunting, forestry & more](https://busy.in/sac-code-9986/) - [9987: Maintenance, repair & installation services](https://busy.in/sac-code-9987/) - [9988: Manufacturing services on physical inputs](https://busy.in/sac-code-9988/) - [9989: Services in publishing, printing & bookbinding](https://busy.in/sac-code-9989/) - [9991: Public administration & other services](https://busy.in/sac-code-9991/) - [9992: Education services](https://busy.in/sac-code-9992/) - [9993: Human health & social care services](https://busy.in/sac-code-9993/) - [9994: Sewage & waste collection](https://busy.in/sac-code-9994/) - [9995: Services of membership organizations](https://busy.in/sac-code-9995/) - [9996: Recreational, cultural & sporting services](https://busy.in/sac-code-9996/) - [9997: Other Services](https://busy.in/sac-code-9997/)