Contract Staffing Services Under SAC Code 998513
Contract staffing services under this SAC code cover cases where a staffing company deploys manpower to a client for a fixed period while workers remain on the provider’s rolls. These contract staffing and manpower outsourcing services help businesses manage project based roles, specialty skills and flexible team sizes. Using the correct SAC code and GST rate keeps staffing contracts, vendor payments and HR cost reporting aligned. This helps HR and finance teams keep staffing and tax records easy to understand.
Contract Staffing Services GST Rate for SAC Code 998513
In GST law, contract staffing is treated as manpower supply and HR support. The taxable value usually includes service charges for each deployed employee, mark up on salaries, administrative fees and any reimbursable costs that form part of the consideration.
Even before the September 2025 changes, such manpower outsourcing services were largely taxed at the standard rate. After the revision to the GST slab structure, contract staffing services under this code continue to be covered by the 18% slab in most situations where they are taxable.
The table below shows the latest standard GST rate for this SAC code as applied in typical business contracts.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 998513 | Contract staffing services | 18% with ITC | 18% with ITC | Contract staffing is also listed at 18% for 998513 in updated labour-charge rate tables; the multi-slab (5/18) pattern appears only for specific sub-types like long-term payroll structures. |
Staffing companies should clearly show the number of resources, service period, consideration and SAC 998513 on their invoices and apply 18% GST wherever applicable, so that both parties can reconcile manpower costs easily in their GST returns.
Explore Other SAC Codes Under 9985
SAC 998513 is part of the broader 9985 group, which covers recruitment, temp staffing, payroll outsourcing, co employment services and other HR support offerings. Many companies use a mix of these services as they grow and reorganise their workforce.
The list below highlights key six-digit SAC codes under 9985 that your database or ERP can present in a dynamic table for finer classification.
As a simple rule, this SAC code is preferred when the core service is supplying manpower on contract, where employees remain on the staffing provider’s payroll. If the client is looking at permanent hiring, temp to perm models, payroll processing alone or full PEO style co employment, other codes from the 9985 family may be more suitable.
Conclusion
This SAC code is designed for contract staffing and manpower outsourcing arrangements where the staffing firm provides employees to work under the client’s direction. Such services typically attract 18% GST under the standard slab. Using the right code and rate helps finance teams separate manpower outsourcing from other HR costs and manage input tax credit smoothly. For complex multi state deployments or cross charging between group entities, getting professional GST guidance is a wise step.
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.