In the The GST (Goods and Services Tax) in India, it is important to understand the components of this indirect tax system. This helps in making informed decisions, filing taxes, and avoiding any legal trouble. One such important factor or component is SAC codes or HSN Codes. While HSN codes are particular to goods, SAC caters to services. In this guide, you can find everything there is to know about the SAC, its meaning, purpose and what role it plays in GST in India.
The Services Accounting Code (SAC) is a unique code used to classify services under the GST framework in India. It helps standardise the identification of services for taxation purposes. Under GST, SAC is used by service providers on invoices and returns to determine the correct tax rate and ensure accurate reporting. Essentially, it brings uniformity and transparency in the taxation of services. The SAC Code System is planned and maintained by the Service Tax Department of India. The GST rates for services are classified into 4 slabs - 0%, 5%, 18% and 40% as per the 56th Meeting of the GST Council. For services in India that are not exempted from GST or for services where GST rates are not mentioned, the default GST rate of 18% will be applicable.
The Services Accounting Code (SAC) is a 6-digit code used to classify services under GST in India. The SAC system is based on the United Nations Central Product Classification (UNCPC), adapted by the CBIC to fit the Indian context. Unlike HSN codes, which classify goods globally, SAC codes focus specifically on services within the Indian taxation framework.
The 6-digit SAC number is structured as follows:
First two digits (99): Common for all services.
Next two digits: Major service group.
Last two digits: Specific service within that group.
Suppose a company provides consulting services. Its SAC code is 9983 01.
99: Indicates it is a service.
83: Represents the major group “Business and management consultancy services”.
01: Specifies “Management consultancy services”.
When the service provider issues an invoice, they mention SAC 998301, ensuring the correct GST rate is applied and the service is properly reported in GST returns.
SAC codes are mentioned on invoices and GST returns to ensure the correct tax rate is applied, maintain uniformity, and simplify compliance across service sectors.
The Services Accounting Code (SAC) helps in classifying services for GST purposes, ensuring uniform taxation and compliance. Here’s how it works:
Service Classification: Every service provided has a unique 6-digit SAC number, which identifies its type, major group, and specific category.
Invoicing: Service providers mention the SAC code on invoices, helping the recipient and GST authorities recognise the service correctly.
GST Rate Application: The SAC determines the applicable GST rate for that service, preventing confusion or misclassification.
Return Filing: SAC codes are used in GST returns to report services, reconcile taxes, and maintain transparency.
Special Categories: Chapter 99 covers services not classified elsewhere, ensuring all services are included under GST.
By using SAC codes, businesses can avoid errors, ensure correct taxation, and simplify compliance under the GST framework.
The length of the Services Accounting Code (SAC) that service providers must furnish depends on their annual aggregate turnover, as per Notification No. 78/2020 – CT(R), dated 10th November 2020 (Source - https://tutorial.gst.gov.in/downloads/news/hsn_advisory_table_12_2.pdf).
Here are the key differences between an HSN Code and a SAC Code:
| Basis of Difference | HSN Code | SAC Code |
|---|---|---|
| Full Form | Harmonised System of Nomenclature | Services Accounting Code |
| Purpose | Used for the classification of goods | Used for the classification of services |
| Origin | Developed by the World Customs Organisation (WCO) and used globally | Based on the United Nations Central Product Classification (UNCPC), adapted by CBIC for India |
| Digits | 2, 4, 6, or 8 digits (depending on requirement) | 6 digits (structured as: first 2 digits = 99 for services, next 2 = major service group, last 2 = specific service) |
| Chapter Allocation | Covers Chapters 1 to 98 for different categories of goods | Chapter 99 is exclusively for services |
| Application in GST | Mandatory for goods suppliers to mention on invoices and GSTR-1 | Mandatory for service providers to mention on invoices and GSTR-1 (length depends on turnover) |
| Scope | Used globally for trade in goods | Used only for services within the Indian GST framework |
Below table is a categorized list of commonly used SAC (Service Accounting Code) services along with their applicable GST rates in India.
| SAC Code | Description | Service Examples | GST Rate |
|---|---|---|---|
| 997133 | Life insurance services | Term Plans, Endowment Plans, ULIPs | 0% |
| 997134 | Health insurance services | Individual Health Insurance, Family Floater, Senior Citizen Policy | 0% |
| 997139 | Reinsurance services | Reinsurance of life/health policies | 0% |
| 996411 | Air transport services for passengers | Economy class domestic & international | 5% |
| 996412 | Road passenger transport services | Buses, Taxis, Ride-sharing | 5% |
| 996413 | Railway passenger transport services | Local/long-distance trains | 5% |
| 996511 | Goods transport agency (GTA) services | Road freight via trucks | 5% (no ITC) / 18% (with ITC) |
| 996521 | Rail transport of goods | Container, bulk goods | 5% (no ITC) / 18% (with ITC) |
| 996531 | Pipeline transport of goods | Natural gas, crude oil pipelines | 5% (no ITC) / 18% (with ITC) |
| 996311 | Hotel accommodation services | Hotel rooms with tariff ≤ ₹7,500/day | 5% (without ITC) |
| 996322 | Beauty & wellness services | Parlours, Salons, Spas | 5% (without ITC) |
| 996329 | Other personal care services | Fitness, Yoga, Wellness therapies | 5% (without ITC) |
| 998871 | Job work in relation to textiles | Yarn processing, fabric finishing | 5% (with ITC) |
| 998872 | Job work in relation to leather | Hide tanning, leather finishing | 5% (with ITC) |
| 998873 | Job work in relation to pharmaceuticals | Capsule filling, packaging | 5% (with ITC) |
| 999611 | Gambling & betting services | Casinos, Horse racing, Lottery | 40% (with ITC) |
| 999612 | Online gaming services | Fantasy sports, e-sports platforms | 40% (with ITC) |
| 999613 | Admission to entertainment events | IPL Tickets, concerts, shows | 40% (with ITC) |
If the SAC Code you are searching for is not in the table above, you can search for it by following these steps:
On the Search HSN/SAC Code page:
Once results appear, you’ll see:
On this page, you will also find an option to download the SAC directory in Excel format, which includes all codes and descriptions for offline reference.
The Service Accounting Code (SAC) is a 6-digit classification code used under GST in India to categorise services for accurate taxation and reporting. All SAC codes start with "99", indicating the service chapter.
Yes. For turnover above ₹5 crore, the full 6-digit SAC must be mentioned. For turnover below ₹5 crore, a 4-digit SAC is required for B2B transactions; it’s optional for B2C, and not required for unregistered dealers.
SAC codes ensure uniform classification, help determine applicable GST rates, and facilitate accurate invoice issuance and GST return filings.
Incorrect or missing SAC codes can lead to non-compliance, penalties (₹25,000 each under CGST and SGST—₹50,000 total under IGST), and potential issues in GST filings or refunds.
Services fall under 0%, 5%, 18%, or 40% GST. If no SAC is assigned, an 18% GST is applied by default.
Generally, no. The SAC code assigned during registration remains unless there’s a substantial change in the nature of the service provided.
Use the Search HSN/SAC Code tool on the GST portal or enter service keywords or code ranges in the search field.
You must use the SAC code that best describes the predominant nature of the service provided.
