--- title: "Co Employment Services | Professional Co Employment Solutions" description: "Expert co employment services covering compliant, reliable, and high-quality solutions tailored to your needs. SAC Code 998517." canonical: "https://busy.in/sac-code-998517/" --- # Co Employment under SAC Code 998517 Part of [SAC 9985: Support services to business](https://busy.in/sac-code-9985/). Co employment services under this SAC code relate to arrangements where a professional employer organisation shares employer responsibilities with the client. Under this model, co employment services, PEO services and professional employer organisation support cover HR administration, payroll, compliances and sometimes benefits, while the client directs day to day work. Many SMEs and growing businesses use such arrangements to manage HR and statutory risk. Tagging these services under the right SAC code makes billing and GST treatment more transparent. ## 998517 SAC Code GST rate In GST, co employment and PEO arrangements are treated as comprehensive HR and employment management services. The taxable value usually includes a service fee calculated as a percentage of payroll, a per employee charge or a fixed monthly amount for handling HR, payroll and compliance for the co employed workforce. Historically, such HR support services were taxed under the standard professional services slab. After the September 2025 revision, co employment and PEO services classified under this code generally continue to be taxed at 18% in ordinary taxable cases, as they fall under business support and employment services. **The table below summarises the latest standard GST rate applicable for this SAC code.** | SAC code | Description | New GST rate (from 22 Sep 2025) | Old GST rate (till 21 Sep 2025) | Notes | | --- | --- | --- | --- | --- | | 998517 | Co-employment staffing services | 18% with ITC | 18% with ITC | Co-employment / PEO services are covered under 99851 employment services; updated GST guides note 18% as the applicable rate, with ITC allowed to eligible recipients. No 5% general-use slab is notified for this code. | Service providers should describe the co employment or PEO scope clearly, mention SAC 998517 on invoices and charge 18% GST where tax is payable, helping clients manage HR outsourcing costs and claim eligible credits correctly. ## Practical classification guidance This co employment code is usually chosen when the service provider takes a broad HR role for employees on its rolls, while the client controls daily work. Where the engagement is limited to permanent recruitment, simple staffing, temp to perm arrangements or stand alone payroll processing, other codes within 9985 are a more accurate choice. ## Conclusion This SAC code is designed for co employment and PEO style services where a specialist firm shares employer responsibilities with the client and manages HR, payroll and compliance. These services typically attract 18% GST under the standard slab. Using the correct code and rate helps both the service provider and the client keep co employment costs visible and defendable during GST reviews. For cross border PEO models or large multi entity arrangements, it is prudent to document responsibilities clearly and review the GST impact with a tax professional. ## Explore more ### Other SAC services under 9985 - [998511: Executive Search Firm](https://busy.in/sac-code-998511/) - [998512: Recruitment Agency](https://busy.in/sac-code-998512/) - [998513: Contract Staffing](https://busy.in/sac-code-998513/) - [998514: Temporary Staffing](https://busy.in/sac-code-998514/) - [998515: Payroll Outsourcing](https://busy.in/sac-code-998515/) - [998516: Temp To Perm Staffing](https://busy.in/sac-code-998516/) - [998519: Labour Supply](https://busy.in/sac-code-998519/) - [998521: Investigation](https://busy.in/sac-code-998521/) - [998522: Security Consulting](https://busy.in/sac-code-998522/) - [998523: Security System Installation](https://busy.in/sac-code-998523/) - [998524: Armoured Car](https://busy.in/sac-code-998524/) - [998525: Security Guard](https://busy.in/sac-code-998525/) - [998526: Dog Training](https://busy.in/sac-code-998526/) - [998527: Polygraph Test](https://busy.in/sac-code-998527/) - [998528: Fingerprinting](https://busy.in/sac-code-998528/) - [998529: Security](https://busy.in/sac-code-998529/) - [998531: Disinfection](https://busy.in/sac-code-998531/) - [998532: Window Cleaning](https://busy.in/sac-code-998532/) - [998533: Cleaning](https://busy.in/sac-code-998533/) - [998534: Water Tank Cleaning](https://busy.in/sac-code-998534/) - [998535: Sterilization](https://busy.in/sac-code-998535/) - [998536: Chimney Cleaning](https://busy.in/sac-code-998536/) - [998537: Exterior Building Cleaning](https://busy.in/sac-code-998537/) - [998538: Vehicle Cleaning](https://busy.in/sac-code-998538/) - [998539: Professional Cleaning](https://busy.in/sac-code-998539/) - [998540: Packaging](https://busy.in/sac-code-998540/) - [998541: Parcel Packing](https://busy.in/sac-code-998541/) - [998542: Coin Packing](https://busy.in/sac-code-998542/) - [998549: Packaging Solutions](https://busy.in/sac-code-998549/) - [998551: Travel Reservation](https://busy.in/sac-code-998551/) - [998552: Tour Package Booking](https://busy.in/sac-code-998552/) - [998553: Convention Centre Booking](https://busy.in/sac-code-998553/) - [998554: Cinema Ticket Booking](https://busy.in/sac-code-998554/) - [998555: Tour Operator](https://busy.in/sac-code-998555/) - [998556: Tourist Guide](https://busy.in/sac-code-998556/) - [998557: Tourism Promotion](https://busy.in/sac-code-998557/) - [998559: Travel Management](https://busy.in/sac-code-998559/) - [998591: Credit Rating](https://busy.in/sac-code-998591/) - [998592: Collection Agency](https://busy.in/sac-code-998592/) - [998593: Customer Support](https://busy.in/sac-code-998593/) - [998594: Office Administration](https://busy.in/sac-code-998594/) - [998595: Mailing](https://busy.in/sac-code-998595/) - [998596: Event Management](https://busy.in/sac-code-998596/) - [998597: Landscape Maintenance](https://busy.in/sac-code-998597/) - [998598: Information](https://busy.in/sac-code-998598/) - [998599: Business Support](https://busy.in/sac-code-998599/) ### All SAC headings - [99: All Services Accounting](https://busy.in/sac-code-99/) - [9954: Services in building & construction](https://busy.in/sac-code-9954/) - [9961: Services in wholesale trade](https://busy.in/sac-code-9961/) - [9962: Services in retail trade](https://busy.in/sac-code-9962/) - [9963: Accommodation, food & beverage services](https://busy.in/sac-code-9963/) - [9964: Passenger transport services](https://busy.in/sac-code-9964/) - [9965: Goods transport services](https://busy.in/sac-code-9965/) - [9966: Rental services of transport vehicles](https://busy.in/sac-code-9966/) - [9967: Supporting services in transport](https://busy.in/sac-code-9967/) - [9968: Postal & courier services](https://busy.in/sac-code-9968/) - [9969: Electricity, gas & water supply services](https://busy.in/sac-code-9969/) - [9971: Financial & related services](https://busy.in/sac-code-9971/) - [9972: Real estate services](https://busy.in/sac-code-9972/) - [9973: Leasing or rental services](https://busy.in/sac-code-9973/) - [9981: Research & development services](https://busy.in/sac-code-9981/) - [9982: Legal & accounting services](https://busy.in/sac-code-9982/) - [9983: Professional, technical & business services](https://busy.in/sac-code-9983/) - [9984: Telecommunications & broadcasting supply services](https://busy.in/sac-code-9984/) - [9985: Support services to business](https://busy.in/sac-code-9985/) - [9986: Support services to agriculture, hunting, forestry & more](https://busy.in/sac-code-9986/) - [9987: Maintenance, repair & installation services](https://busy.in/sac-code-9987/) - [9988: Manufacturing services on physical inputs](https://busy.in/sac-code-9988/) - [9989: Services in publishing, printing & bookbinding](https://busy.in/sac-code-9989/) - [9991: Public administration & other services](https://busy.in/sac-code-9991/) - [9992: Education services](https://busy.in/sac-code-9992/) - [9993: Human health & social care services](https://busy.in/sac-code-9993/) - [9994: Sewage & waste collection](https://busy.in/sac-code-9994/) - [9995: Services of membership organizations](https://busy.in/sac-code-9995/) - [9996: Recreational, cultural & sporting services](https://busy.in/sac-code-9996/) - [9997: Other Services](https://busy.in/sac-code-9997/)