Recruitment Agency 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.

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998512 SAC Code GST Rate

Review old and new GST rates for Recruitment Agency under 998512 SAC Code.

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.

SAC Code

998512

Description

Permanent placement services, other than executive search services

New Rate

18 %
Standard

Old Rate

18 %

Notes

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.

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Practical Classification Guidance

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 above does not constitute professional advice or a formal recommendation. We recommend consulting a professional tax consultant before acting on the information contained in this piece of content.