Management Consulting Services Under SAC Code 998311
Management consulting services help business owners and leadership teams improve strategy, operations and overall performance. Consultants support planning, organisation design, process improvement and change management so that companies can grow in a structured way. Many MSMEs use management consulting to solve profitability, cost control and growth challenges. Under GST, these management consulting services are classified under SAC 998311. This SAC code and its GST rate decide how GST applies on management consulting retainers and project based fees.
Management Consulting Services GST Rate for SAC Code 998311
Management consulting, business consulting, IT consulting and software development services under these SAC codes are treated as professional and technical services under GST. The taxable value normally includes consulting fees, project based charges and retainers, excluding any pure reimbursements that are recovered from clients at actuals with proper supporting documents.
Post the September 2025 rationalisation, most taxable consulting and software development services generally fall within the 18% GST slab with input tax credit for eligible registered recipients. Export of services may qualify as zero rated supplies subject to conditions, and any special notifications for particular service categories should be reviewed before raising invoices.
The table below explains the prevailing GST treatment for SAC code 998311, indicating the usual 18% slab for taxable consulting or software development services and any notified exceptions.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 998311 | Management consulting and management services including financial, strategic, human resources, marketing, operations and supply chain management. | 18% with ITC | 18% with ITC | Professional-services schedules under heading 9983 describe management consulting at 18%. Some older tables show 5/12/18 plus a specific nil entry linked to a sports event, but for normal business work the rate is 18% and remains unchanged. |
Consulting firms and software development companies using this SAC code should mention service value, GST rate in % and GST amount clearly on tax invoices. The same SAC and rate should be mirrored in GSTR 1 and GSTR 3B so that clients can claim input tax credit properly and remain comfortable during any GST assessment or audit.
Explore Other SAC Codes Under 9983
These SAC codes fall under the business and management consulting services group 9983, which covers management consulting, business consulting, IT consulting and software development services. Each six digit SAC within this group focuses on a different style of consulting or technical delivery for GST purposes.
The list below highlights key six-digit SAC codes under 9983.
Consulting and IT service providers should select the SAC that most accurately describes their primary engagement, whether it is management consulting, wider business consulting, IT consulting services or software development services. Using the correct SAC and GST rate in % makes billing transparent, supports input tax credit for clients and reduces the risk of disputes during GST scrutiny.
Conclusion
Management consulting services under SAC 998311 focus on strategy, organisation and performance improvement for businesses. Fees for such consulting work generally fall in the 18% GST slab with input tax credit for registered clients. Consulting firms should classify their work under SAC 998311, apply the right GST rate in %, present tax amounts transparently on invoices and keep GST returns consistent with this treatment.
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 998311 in GST for management consulting?
SAC 998311 covers management consulting services such as strategy, operations, HR, process improvement and organisational effectiveness advisory. Consultants analyse business performance, suggest improvements and support implementation. Their work often involves workshops, reports, dashboards and change management plans to help companies improve profitability and efficiency.
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Does SAC 998311 cover business strategy and operations consulting services?
Yes. Services like growth strategy, cost reduction programmes, process redesign, organisation restructuring and performance management are usually classified under SAC 998311. Management consultants may work across industries and functions, engaging with senior leadership and teams to diagnose problems and recommend actionable plans backed by data and best practices.
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What GST rate applies to services under SAC 998311?
Management consulting services under SAC 998311 are generally taxed at 18%. GST is charged on project fees, retainers or success fees. For cross border assignments, export of services provisions may apply when conditions are met. Consultants must ensure proper documentation of scope, milestones and place of supply.
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Should companies use SAC 998311 for HR and growth consulting projects?
Yes. Most HR transformation, organisation development and growth strategy projects are grouped under SAC 998311, unless they fit a more specific SAC like recruitment or training. Using this code helps classify the work clearly as general management consulting rather than legal, tax or pure IT implementation services.
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Is ITC available on GST paid for SAC 998311 services?
Companies can usually claim ITC on GST paid for SAC 998311 services because such consulting directly supports business improvements and future taxable supplies. If the project mainly serves exempt activities or non business objectives, ITC may be restricted. Clear linkage of consulting outcomes to business goals is important.