Coin Packing Services Under SAC Code 998542
Coin and currency packing services deal with carefully counting, bundling and sealing coins or currency notes into secure packets or containers. These services are widely used by banks, cash management companies, ATMs service providers and entities handling large volumes of cash. Under GST, this activity is classified under SAC 998542 and the GST rate under this code decides how much tax is charged on the specialised packing fee.
Coin Packing Services GST Rate for SAC Code 998542
SAC 998542 covers services where the main work is to sort, pack and seal coins or currency notes into bags, rolls or sealed boxes, often with security features like tamper evident seals. After the September 2025 GST rate changes, coin and currency packing mostly continues under the standard 18% slab with eligibility for input tax credit, as it is treated as a regular business to business support service.
The table below highlights the latest GST rate notified for SAC code 998542.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 998542 | Coin and currency packing services | 18% with ITC | 18% with ITC | Currency and coin packing services are also listed with 5% / 18% / nil in rate tables, but the lower and nil slabs apply only under narrow conditions. The operative rate for day to day services is 18% with ITC. |
While issuing tax invoices for coin and currency packing, service providers should clearly mention SAC 998542 and apply the correct GST rate on the service value charged to banks or other clients. If the packing work is bundled together with cash transportation, vaulting or ATM management, then the overall contract should be reviewed to see whether it is a mixed or composite supply before finalising the GST treatment in the books and returns.
Explore Other SAC Codes Under 9985
Coin and currency packing under SAC 998542 falls within the broader 9985 support services category that includes many different operational support activities. Some codes in this family deal with staffing, security and cleaning services, while others cover packaging and travel related support work.
The list below highlights key six-digit SAC codes under 9985 that cover different but related support services, ranging from packaging of goods to travel reservation and various facility management activities.
Choosing the correct SAC from the 9985 group depends on what the client is actually paying for. If the focus is secure packing of coins and currency, SAC 998542 is appropriate. For general packaging of goods or for manpower supply, other codes in the same family should be used so that GST classification and input tax credit claims remain consistent.
Conclusion
Coin and currency packing services under SAC 998542 play a critical role in the banking and cash logistics ecosystem. They are usually taxed at 18% after the September 2025 GST revision, with credit of input tax allowed where normal conditions are met. Correctly using this code on invoices and in GST returns helps banks and service providers keep a clear audit trail of cash handling costs and avoid classification disputes in future.
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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.