SAC Codes under GST

Under the GST system in India, services are classified using Service Accounting Codes (SAC) to determine tax rates, exemptions, and rules. SAC codes are unique identifiers assigned to different services for GST purposes. They help with invoicing, accounting, and taxation. SAC codes range from 0% to 28% in terms of tax rates. If a service doesn’t have a specific SAC code, it is generally subject to an 18% GST levy by default. These codes enable the government to analyze GST collections for each service category, maintaining a systematic record of tax revenues associated with various services.


    What is the SAC Number?

    A SAC Code consists of 6 digits, and since the services are covered under Chapter 99, all SAC codes begin with “99”. The rest of the 4 digits represent the nature of the service. For example, let’s consider SAC Code 996331(Services provided by Restaurants, Cafes and similar eating facilities, including Takeaway services, Room services and Door Delivery of Food).

    • 99: Represents the chapter number which is common for all the SAC codes.
    • 63: Represents the Heading of the service category. In this case, it is the Services provided by Restaurants, Cafes and similar eating facilities.
    • 31: Represents the Service Code of the specific nature of the service category. For this example, it is the Takeaway services, Room Services and Door Delivery of Food.

    What is the Use of SAC Code in GST?

    SAC codes play a vital role in the GST system. These unique 6 digits are assigned to various services provided by businesses to facilitate the classification and taxation of those services.

    The utilisation of SAC codes in GST offers several advantages for both businesses and the government:

    • Uniformity: SAC codes promote a uniform tax system, ensuring consistent taxation practices for businesses across the country.
    • Service Identification: These codes enable easy identification of different service types and help determine the applicable GST rates for each specific service.
    • Compliance: By using SAC codes, businesses can simplify the process of tax calculation and filing GST returns, reducing the compliance burden they face.
    • Monitoring and Tracking: The government can efficiently monitor and track services offered by utilising SAC codes, leading to enhanced tax collection and administration.

    What is the Difference between SAC and HSN Codes?

    HSN and SAC codes are used in India to classify goods and services for taxation. However, there are some key differences between the two codes.

    • HSN codes are used for goods, while SAC codes are used for services.
    • HSN codes are 8 digits long, while SAC codes are 6 digits long.
    • The World Customs Organization maintains HSN codes, while the Government of India maintains SAC codes.

    Here is an example of how HSN and SAC codes are used. Let’s say you are a business that sells software. The HSN code for the software is 9511. This code tells the government that you are selling software and that the GST rate for software is 18%. The SAC code for software development services is 998999. This code tells the government that you are providing software development services and that the GST rate for software development services is 12%.

    By using HSN and SAC codes, the government is able to track the movement of goods and services and ensure that the correct GST is paid.

    What are the Applicability Requirements for SAC Codes?

    When filing GSTR, service providers must include SAC codes. These codes apply to various services such as hospitality, education, finance, etc. Services are categorised under chapter 99 of the HSN module, which specifically pertains to services.

    The GSTR forms must incorporate the relevant SAC codes. The requirements for using SAC codes in GSTR filings are discussed below:

    • Companies with a turnover below Rs. 1.5 crores are not required to include SAC codes.
    • Companies with a turnover ranging from Rs. 1.5 to 5 crores must mandate the appropriate SAC codes.
    • Dealers or companies with a turnover exceeding Rs. 5 crores must also provide the SAC codes for their services.

    Service providers must adhere to these requirements while filling out the GSTR forms to ensure compliance with GST regulations and facilitate accurate reporting of services.

    Where Should the SAC Code be Mentioned?

    Taxpayers must provide the SAC code for services in the following instances:

    • GST Registration: SBusinesses must disclose the category of services they deal with when registering for GST. Accurately providing the relevant SAC code during the registration process is essential.
    • GST Rate Determination: Knowledge of the SAC code allows taxpayers to determine the applicable GST rate for services they offer quickly.
    • GST Invoice: When generating invoices for services, sellers must include the SAC codes for services. This inclusion is based on the total turnover of their business.
    • GST Returns: The SAC Summary, included in the GST returns submitted by the taxpayer, provides information about the sold services categorised according to the reported SAC codes.

    Why are HSN and SAC Codes Important for Businesses?

    SAC codes offer several benefits for businesses, including:

    • GST Rate Determination: Businesses can use these codes to determine the correct GST rates applicable to specific services they provide.
    • Mandatory Registration: Mentioning SAC codes is mandatory during the GST registration process.
    • Identification: The codes help identify and differentiate specific services among the wide range of options available in the market.

    By accurately utilising SAC codes, businesses can ensure compliance with GST regulations, facilitate proper tax calculation, and maintain clarity in their business transactions.

    List of SAC Codes

    Given below are the list of different SAC codes under GST in India:

    SAC Code Description

    The exemptions cover charitable services, transfer of going concern, government-related services for Panchayats and Municipalities, government services based on turnover thresholds, services between government authorities, low-value services, and non-commercial services from non-taxable territories. Additional exemptions include services for the Reserve Bank of India, United Nations, foreign diplomatic missions, FIFA U-17 World Cup 2017 events, technology-related services, and composite supplies within specified value limits.

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    Construction services, including works contract services, composite supply of works contract services, construction of complexes, buildings, civil structures, or parts thereof intended for sale, construction of complexes, buildings, civil structures, or parts thereof intended for personal use, construction services provided to the government, and construction services provided to registered persons.

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    Under the SAC code 9961, services in wholesale trade encompass transportation, storage and warehousing, marketing and promotion, and various other functions. These services facilitate the distribution of goods on a large scale, ensuring efficient supply chains and meeting the needs of retailers, businesses, and consumers.

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    SAC Code 9962 is designated for services in the retail trade sector. It encompasses a range of activities provided on a fee/commission or contract basis that support retail operations. These services include retail management, merchandising, product promotion, customer assistance, and more. The code helps classify and identify services specific to the dynamic field of retail trade.

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    SAC Code 9963 is specifically assigned to accommodation services. It encompasses various services related to lodging, such as those provided by hotels, motels, guest houses, inns, clubs, campsites, serviced apartments, resorts, dormitories, hostels, and similar establishments. This code helps categorize and identify services offered in the accommodation industry.

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    SAC Code 9964 is designated for “Passenger Transport Services.” This code encompasses a broad range of services related to transporting passengers, including air travel, road transport, and railways. It covers various aspects of passenger transport, including transportation charges, parking charges, toll charges, and related services. It is important to note that businesses providing passenger transport services are required to use this SAC code for proper classification and identification.

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    SAC Code 9965 is for “Services of goods transport agency (GTA) in relation to transportation of goods (including used household goods for personal use).” It applies to individuals or entities that provide road transportation services for goods and issue a consignment note. The code covers the transportation of goods, including used household goods meant for personal use.

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    SAC Code 9966 represents vehicle rental services, excluding goods transport. It includes the rental of passenger cars, trucks, motorcycles, bicycles, trailers, and semi-trailers, with or without operators. This code offers various options for temporary transportation needs, catering to both personal and commercial requirements.

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    The GST SAC code 9967 refers to “Supporting Services for Transportation.” This code encompasses a wide range of services that support transportation activities. It includes services such as cargo handling, packing and unpacking, storage and warehouse services, freight forwarding, and other related support services. These services are essential in facilitating the smooth and efficient movement of goods and passengers within the transportation industry.

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    SAC code 9968 represents “Postal and Courier Services,” encompassing the transportation, delivery, and distribution of goods and documents by postal and courier companies. It covers services like mail delivery, package handling, express delivery, and tracking. The code serves to classify these specific services in the GST system.

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    The SAC code 9969 is designated for services related to Electricity, Gas, and Water supply. This code encompasses a wide range of services associated with the generation, transmission, and distribution of electricity, gas, and water. It includes activities such as power generation, electricity distribution, gas supply, water treatment, and related maintenance and repair services.

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    The SAC code 9971 refers to services provided by financial institutions, including banks, non-banking financial companies (NBFCs), insurance companies, and other financial service providers. This code covers a wide range of services related to banking, lending, insurance, investment, and other financial activities. It includes services such as account management, loan processing, investment advisory, insurance coverage, and various other financial transactions and services.

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    SAC code 9972 is specifically designated for real estate services. It encompasses a diverse range of activities associated with real estate, including construction, sale, purchase, leasing, and renting of properties. The code is further classified into different sub-categories to categorize specific types of real estate services offered. These sub-headings aid in streamlining and organizing the GST process for real estate transactions.

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    SAC code 9973 refers to leasing or rental services of immovable property. This code is applicable to transactions involving the leasing or renting of land, buildings, and other immovable properties. It covers a broad spectrum of services related to the temporary use or occupation of such properties, typically in exchange for a periodic payment or rental fee.

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    SAC code 9981 encompasses a range of research and development services. This code includes scientific research services, market research services, and other research and development services. It is applicable to various fields, including agriculture, medical science, engineering, and social science. The code helps in identifying and categorizing the specific services provided in the realm of research and development.

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    SAC code 9982 is used for legal and accounting services. This code covers a broad range of services provided by legal and accounting professionals. It includes legal advisory and representation services, accounting, bookkeeping, auditing, and tax consultancy services. SAC code 9982 helps in classifying and identifying these specific services within the legal and accounting domain.

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    SAC code 9983 is dedicated to Other Professional Services, which encompass a diverse range of specialized services provided by professionals with unique expertise. These services do not fall under any specific category and often require specialized knowledge or skills in niche areas. Examples of such services include specialized photography services, event management services, interior decorator services, security services, and graphic designing.

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    The SAC code 9984 is specifically designated for telecommunication services provided by businesses. This code serves as a classification system to determine the applicable GST rates for such services. It is mandatory for businesses engaged in offering telecommunication services to utilize the SAC code 9984 when filing their GST returns. By using this code, businesses ensure accurate categorization and compliance with GST regulations for telecommunication services.

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    SAC code 9985 is for support services provided to businesses that are not classified under specific categories. It includes services such as document preparation, translation, data processing, business support, packaging, and convention organization. These services play a crucial role in supporting various business operations.

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    SAC code 9986 is used for support services related to agriculture, forestry, fishing, animal husbandry, and other similar activities. It encompasses a range of services including crop services, livestock services, forestry services, landscape gardening services, and other agricultural support services. SAC code 9986 helps in identifying and categorizing these specific services for the purpose of GST classification and taxation.

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    SAC code 9987 is specifically designated for maintenance services in India. It encompasses a diverse range of services related to repairs, cleaning, and the overall upkeep of various assets and equipment. This code holds particular importance as it helps in determining the applicable GST rate for maintenance services throughout the country. It covers a wide array of maintenance services, ranging from repairs to cleaning and the general maintenance of diverse assets and equipment.

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    SAC code 9988 is for manufacturing services, covering a wide range of sectors such as food products, beverages, tobacco, textiles, leather, chemicals, rubber, plastic products, non-metallic mineral products, printing, publishing, furniture, and other manufacturing services. GST rates may vary and are subject to government notifications.

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    SAC code 9989 is used for services related to printing and publishing. This code covers a variety of services within the printing and publishing industry, including printing, copying, graphic design, typesetting, bookbinding, and publishing. It is important to note that the applicable GST rates for services under SAC code 9989 may vary and are subject to government regulations.

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    SAC code 9991 is used for services related to public administration and government services. This code encompasses a wide range of services provided by government entities, including administrative services, regulatory services, licensing services, public safety services, and other government-related functions. It is important to note that the GST rates for services under SAC code 9991 may vary and are subject to government regulations.

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    SAC code 9992 is used for services provided by the government or local authorities to individuals or businesses. This code covers a wide range of services such as issuing licenses, permits, certificates, registrations, and other regulatory services. It also includes services related to taxation, public safety, enforcement, and administrative support provided by government agencies. It is important to note that the GST rates for services under SAC code 9992 may vary and are subject to government regulations.

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    9993 SAC code 9993 is specifically assigned to healthcare services. It encompasses a wide range of services provided by hospitals, medical practitioners, and paramedics. This code is essential for the classification of healthcare services for GST purposes. It covers various medical services, treatments, consultations, diagnostics, and other healthcare-related activities.
    9994 The SAC code 9994 is assigned to the service category of “Maintenance and Repair Services.” This code encompasses a wide range of services related to the maintenance and repair of various assets and equipment. It includes services such as repair and maintenance of buildings, machinery, vehicles, electrical equipment, plumbing systems, and more.
    9995 The SAC code 9995 is specifically assigned to “Membership Organization Services.” It is used to categorize the services provided by membership organizations for the purpose of GST registration and compliance. This code helps in accurately classifying these services and determining the applicable tax rates.
    9996 SAC code 9996 is designated for recreational services, covering activities like amusement parks, water parks, circuses, sporting events, and more. It helps classify and manage tax implications for businesses in the recreational sector, ensuring compliance and a streamlined system.
    9997 SAC code 9997 covers a variety of services that are not categorized under specific headings. These include washing, cleaning, and dyeing services, beauty and physical well-being services, and other miscellaneous services. The code also applies to services provided by government authorities involving the toleration of non-performance of a contract, with fines or liquidated damages payable to the government. SAC codes are used for GST registration, compliance, and tax rate determination.

    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.

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