Temp To Perm Staffing Under SAC Code 998516

Temp to perm staffing services under this SAC code cover cases where employees first join as temporary or contract staff and later move to the client’s permanent rolls. This contract to hire model lets companies test candidates on live work before confirming them. The staffing firm manages payroll and compliance during the temp period and charges a fee on conversion, so using this SAC code separates such hybrid arrangements from pure temp or permanent staffing.

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998516 SAC Code GST Rate

Review old and new GST rates for Temp To Perm Staffing under 998516 SAC Code.

For GST, temp to perm staffing is treated as manpower supply and HR support. The taxable value normally includes monthly billing for the temporary phase plus any one time conversion or placement fee charged when the employee moves to the client’s rolls.

Before the September 2025 revision, these services were generally taxed at the standard rate, similar to other staffing services. After the change in slabs, temp to perm staffing under this code remains within the 18% GST slab in most taxable scenarios, as it is considered a form of contract staffing with an additional conversion component.

The table below highlights the latest GST rate notified for SAC code 998516 in regular cases.

SAC Code

998516

Description

Temporary staffing-to-permanent placement services

New Rate

18 %
Standard

Old Rate

18 %

Notes

Conversion of temp staff to permanent placement is specifically listed at 18% GST in recent staffing rate summaries. Concessional sports-event entries do not apply here.

Staffing firms should clearly present the temp phase billing and the conversion fee, mention SAC 998516 and charge 18% GST wherever the service is taxable, so that both parties can track hiring costs and credits without confusion.

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Explore More SAC Codes Under 9985

Practical Classification Guidance

This code is best used when there is a clear temp period followed by a planned or possible move to permanent employment. If the engagement is purely temporary, fully permanent, only payroll related or based on full co employment, another SAC code from the 9985 family generally fits better.

Conclusion

This SAC code is meant for temp to perm staffing where candidates start as temporary resources and may later become permanent employees of the client. These services are typically taxed at 18% GST, in line with other manpower supply services. Choosing the right code and rate supports clean tracking of trial hiring costs and conversion fees in contracts and GST returns. For large scale programmes or cross location conversions, it is a good idea to align HR, finance and tax teams on the GST treatment in advance.

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.