Executive Search Firm Services Under SAC Code 998511
Executive search firm services under SAC 998511 relate to specialised leadership hiring and headhunting for senior roles in organisations. Search firms study the client’s needs, scan the market, approach shortlisted leaders confidentially and support interviews, reference checks and offer closure. Retainers, success fees and research charges for executive search, leadership hiring and headhunting services should be raised using this SAC code with the right GST rate so that HR budgets and GST input tracking are easy to manage.
Executive Search Firm Services GST Rate for SAC Code 998511
Under GST, executive search and headhunting services are treated as recruitment and staffing support services. The taxable value usually includes retainers, success based fees, research charges and any agreed travel or assessment costs that are billed to the client as part of the assignment.
After the September 2025 changes, executive search and similar recruitment consultancy services that are not exempt typically fall under the standard 18% slab. Clients who are registered and use these services for their business, such as hiring leaders for a company or group, can normally claim input tax credit, subject to general eligibility conditions.
The table below summarises the latest GST rate that normally applies to assignments under this SAC.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 998511 | Executive/retained personnel search services | 18% with ITC | 18% with ITC | Recruitment and HR SAC guides and updated 2025 labour-services summaries clearly show 18% GST for executive search. No separate concessional slab is notified for regular commercial supplies. |
Firms should make sure that their proposals, agreements and invoices clearly refer to executive search services, carry this SAC and apply 18% GST on taxable consideration so that both parties have clarity on tax treatment.
Explore Other SAC Codes Under 9985
SAC 998511 comes under heading 9985, which covers a range of employment, recruitment, staffing and HR support services. This includes permanent recruitment, contract staffing, temporary staffing, payroll outsourcing and other manpower related services.
Below is a list of related six-digit SAC codes under 9985 that your system can maintain in a separate master table.
Executive search firms should use this code when their main work is senior level hiring and leadership headhunting. Other SAC codes in the same heading may be more suitable when the assignment is about general recruitment, bulk hiring, contract staffing, temp staffing or wider HR and payroll outsourcing support.
Conclusion
This code is meant for executive search and headhunting services where firms help organisations find and appoint senior leaders and specialised talent. These services are usually taxed at 18% under GST, and applying the correct code and rate helps both the search firm and the client keep contracts, HR budgets and GST returns aligned. Because leadership hiring often involves cross border searches, stock linked pay and complex fee models, it is sensible to document fee structures clearly and seek expert GST advice wherever transactions cut across countries or group entities.
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.