Temporary Staffing Services Under SAC Code 998514
Temporary staffing services under this SAC code focus on short term workforce needs. A temp staffing agency deploys workers for limited periods such as seasonal peaks, events or to cover staff on leave, while day to day work is supervised by the client. Using this SAC code for temporary staffing helps businesses track short term manpower costs separately from permanent recruitment and other HR services. This clarity is useful when reviewing HR budgets and GST working at year end.
Temporary Staffing Services GST Rate for SAC Code 998514
From a GST standpoint, temporary staffing is treated as supply of manpower and HR services. The taxable value generally includes service charges based on headcount, mark up on wages, administrative fees and agreed reimbursements linked to the deployment.
Before the September 2025 GST changes, temporary staffing services were usually taxed at the standard rate. After the restructuring of slabs, these services remain within the 18% GST slab in ordinary taxable cases, because they are considered business support and manpower supply services.
The table below summarises the latest standard GST rate for this SAC code.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 998514 | Temporary staffing services | 18% with ITC | 18% with ITC | Temporary staffing services carry 18% GST in current employment-services summaries. This remains part of the standard 18% services bucket under the 5% / 18% / 40% regime. |
Temp staffing agencies should mention SAC 998514 on invoices, show deployment details clearly and charge 18% GST where tax is applicable, so that clients can map short term manpower expenses correctly in their books and GST working.
Explore Other SAC Codes Under 9985
SAC 998514 is grouped under heading 9985, which brings together many employment and staffing solutions. This includes permanent recruitment, longer term contract staffing, payroll outsourcing and co employment or PEO services designed for different workforce strategies.
Below is a list of related six-digit SAC codes under 9985 that your system can keep as a dynamic reference for classification and reporting.
This particular code is best used when assignments are clearly temporary in nature and workers are engaged for short durations. Where the arrangement shifts towards long term deployment, temp to perm conversion, full payroll outsourcing or shared employer models, other SAC codes from the same heading are usually more accurate.
Conclusion
This SAC code is meant for temporary staffing services where agencies support short term workforce requirements without adding employees to the client’s rolls. These services are commonly taxed at 18% GST under the standard slab. Choosing the correct code and rate helps both the staffing provider and the client maintain clear records of seasonal and project based manpower costs and avoid confusion during GST assessments. For mixed models that combine temp and permanent hiring, it is useful to review contracts and billings carefully.
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.