--- title: "Packaging Services | Professional Packaging Solutions" description: "Expert packaging services covering compliant, reliable, and high-quality solutions tailored to your needs. SAC Code 998540." canonical: "https://busy.in/sac-code-998540/" --- # Packaging under SAC Code 998540 Part of [SAC 9985: Support services to business](https://busy.in/sac-code-9985/). Packaging services of goods for others include contract packing, repacking, labelling, barcoding, shrink wrapping, kitting and gift packing carried out on behalf of manufacturers, traders and e commerce sellers. These services help businesses manage seasonal demand, promotional offers and flexible logistics without investing heavily in their own packing teams. Under GST, such third party packaging activities are grouped under SAC code 998540 and should be used when billing for contract packing work. ## 998540 SAC Code GST rate SAC 998540 covers packaging services performed on goods that belong to another party. Typical examples include carton packing, retail ready packaging, blister and pouch packing, stickering and barcoding, promotional combo packing and festive gift wrapping. Only the service element is billed under this code. The value of goods and packing materials is included or excluded based on the commercial terms agreed between the service provider and the client. These packaging services generally fall under the standard GST rate of 18%. There was no change in this rate in the September 2025 GST restructuring. Where the packed goods are later supplied as taxable outward supplies, the recipient can usually claim input tax credit on GST paid for packaging services, subject to normal eligibility conditions. **The table below highlights the latest GST rate notified for SAC code 998540.** | SAC code | Description | New GST rate (from 22 Sep 2025) | Old GST rate (till 21 Sep 2025) | Notes | | --- | --- | --- | --- | --- | | 998540 | Packaging services of goods for others | 18% with ITC | 18% with ITC | Packaging for third parties has a dual entry in rate tables: 5% without ITC or nil for certain certified event contracts, and 18% for usual supplies. For SAC wise pages, the practical typical rate is 18% with ITC. | While raising invoices for contract packaging work, service providers should use SAC code 998540 with 18% GST, and clearly mention whether materials are included or billed separately so that clients can capitalise or expense the cost correctly in their accounts and GST returns. ## Practical classification guidance If the work is limited to parcel packing, currency packing or a specialised type of packing that has its own SAC inside group 99854, then that specific code may be more appropriate than using SAC 998540. Selecting the correct SAC ensures that packaging activities are correctly aligned with GST descriptions and that both parties can explain the nature of services during audits. ## Conclusion Packaging services of goods for others under SAC 998540 help manufacturers, traders and online sellers manage their packing operations flexibly through outsourced service providers. The applicable GST rate is 18%, and tax paid is usually available as input tax credit when the packed goods are sold as taxable supplies. By using this SAC code properly and stating the scope of work clearly on invoices, businesses can link packaging costs with their sales and maintain strong GST compliance. ## 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/) - [998517: Co Employment](https://busy.in/sac-code-998517/) - [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/) - [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/)