Contract Staffing 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.

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998513 SAC Code GST Rate

Review old and new GST rates for Contract Staffing under 998513 SAC Code.

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.

SAC Code

998513

Description

Contract staffing services

New Rate

18 %
Standard

Old Rate

18 %

Notes

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.

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Explore More SAC Codes Under 9985

Practical Classification Guidance

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 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.