Recruitment Agency Services Under SAC Code 998512
Recruitment agency services under this SAC code cover professional hiring support where a consultant helps companies find permanent employees. A recruitment agency studies the job role, screens CVs, conducts initial interviews and shortlists the right candidates for the employer. These recruitment agency and permanent staffing services are billed as a fee or percentage of CTC. Using the correct SAC code and GST rate helps both HR teams and finance teams keep hiring costs and tax records clear.
Recruitment Agency Services GST Rate for SAC Code 998512
Recruitment agency services fall under employment and HR support services. The taxable value normally includes placement fees, success fees, retainers and any reimbursable costs that are charged as part of the recruitment assignment.
Before the September 2025 GST revision, most recruitment and permanent staffing services were already taxed at the standard rate. After the rate reshuffle, these services continue to fall under the general 18% slab in normal cases, unless a specific exemption or special scheme applies in a rare situation.
The table below shows the latest standard GST rate for this SAC code in regular taxable scenarios.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 998512 | Permanent placement services, other than executive search services | 18% with ITC | 18% with ITC | Non-executive permanent placement services are grouped under 99851 employment services and standardised at 18% GST, with ITC available to business recipients using them for taxable activities. |
While drafting invoices, recruitment agencies should clearly describe the recruitment service, mention SAC 998512 and apply 18% GST wherever the supply is taxable, so that client accounting and GST credit tracking remain simple.
Explore Other SAC Codes Under 9985
SAC 998512 sits within heading 9985, which covers a wider range of employment, recruitment and HR related support services. Along with permanent recruitment, this heading covers contract staffing, temporary staffing, payroll outsourcing and co employment models used by many organisations.
Below are the major related six-digit SAC codes under parent 9985 that your system can show in a separate dynamic table for quick reference.
In practice, this code is normally used when the main deliverable is permanent recruitment or one time placement of employees on the client’s rolls. Where the engagement is about contract staffing, temp staffing, long term payroll outsourcing or full co employment, a different SAC from the 9985 group is usually more appropriate.
Conclusion
This SAC code is meant for recruitment agency work where a consultant helps companies hire permanent staff and charges a professional fee. These services are generally taxed at 18% under GST in normal business cases. Using the right SAC and rate during invoicing and return filing makes it easier for both the agency and the client to book costs correctly and claim input tax credit where it is allowed. For unusual hiring structures or cross border searches, it is sensible to take expert GST advice.
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.