SAC Code (Services Accounting Code)

A classification code used for services under GST in India, similar to HSN codes for goods, to determine applicable tax rates.

SAC (Services Accounting Code) is the classification system for services under India's GST regime. While HSN codes classify goods, SAC codes classify services. Every service has a unique 6-digit SAC code that determines the applicable GST rate.

SAC code structure:

  • First 2 digits: Always "99" (indicating a service)
  • Next 2 digits: Service category (e.g., 9954 = construction services)
  • Last 2 digits: Specific service type

Common SAC codes:

  • 998311: Management consulting services
  • 998312: Business consulting services
  • 998313: IT consulting and support services
  • 998221: Accounting and auditing services
  • 998231: Legal advisory and representation services
  • 998314: IT design and development services

For professional services firms, correct SAC codes are essential for proper GST compliance, especially when dealing with reverse charge mechanisms and inter-state supply of services.

Related Terms

HSN Code (Harmonized System of Nomenclature)

A standardized international system for classifying traded goods, used in India for GST rate determination and invoice compliance.

GSTIN (Goods and Services Tax Identification Number)

A unique 15-digit alphanumeric code assigned to every registered GST taxpayer in India.

Reverse Charge Mechanism (RCM)

A GST mechanism where the recipient of goods or services is liable to pay the tax instead of the supplier.

Automate your finance operations

ReckOps handles GST reconciliation, TDS compliance, vendor payables, and expense management — so you can focus on growing your business.

Free GST Health CheckBrowse all terms