GST glossary
SAC code
Services Accounting Code
A SAC code is the six-digit number that classifies a service under GST and decides its rate. Every SAC starts with 99, and you show it on invoices and in your GSTR-1 under the same rules as HSN codes for goods.
Why it matters to your business
If you sell services, the SAC code is how GST knows what you provide. It fixes the rate on your invoice, it goes into your e-invoices and your GSTR-1, and your customers’ accountants check it against what they bought. The same code also helps you, as a buyer, to spot services on which you pay GST yourself under reverse charge.
How it works
As of September 2026:
- SAC codes sit in chapter 99 of the GST classification. The first four digits give the group of services and the six-digit code the exact service.
- The digits you must show follow the same turnover rule as HSN codes.
- Most services are taxed at 18%, some at 5%, and a few are exempt. The rate is notified against the service description, so read the description as well as the code.
- For services, the place of supply (and so IGST or CGST plus SGST) usually follows the location of a registered customer.
An example
A CA firm in Kolkata bills a registered client in Kolkata ₹50,000 for audit fees. The invoice shows SAC 9982 with the six-digit code for the service, taxable value ₹50,000, CGST at 9% ₹4,500 and SGST at 9% ₹4,500, a total of ₹59,000.
Common mistakes
- Putting an HSN code for goods on a service, or the reverse, on a mixed invoice.
- Using a broad four-digit code when your turnover requires six digits.
- Leaving the SAC off sales to consumers in your records. Those sales still need a code in the HSN summary of GSTR-1.
Questions about SAC code
What is the difference between an HSN code and a SAC code?
HSN codes classify goods and SAC codes classify services. SAC codes follow the same numbering style and all begin with 99, which is the chapter for services in the GST scheme of classification.
How many digits of SAC must I show on an invoice?
The same as for goods. If your aggregate turnover is up to ₹5 crore, at least 4 digits on invoices to registered customers. Above ₹5 crore, 6 digits on every invoice.
Can you give examples of SAC codes?
9982 covers legal and accounting services, 9965 goods transport services, and 9954 construction services. Each has six-digit codes below it for specific services.
Does the SAC code affect reverse charge?
Reverse charge depends on the service and who supplies it, not on the code alone. The SAC helps you identify services, such as legal or transport services, where reverse charge may apply.
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