Services Accounting Codes (SAC) are 6-digit numerical codes under Chapter 99 of the GST tariff schedule used to classify all service supplies in India. Standard professional, IT, consulting, legal, and accounting services fall under Headings 9982 and 9983 and attract a standard rate of 18% GST.
Structure of Chapter 99 Services Accounting Codes (SAC)
Unlike physical goods classified under HSN Chapters 01 to 98 based on chemical composition and manufacturing state, all services are consolidated under Chapter 99. A 6-digit SAC code is structured as follows:
- First 2 Digits (99): Represents Chapter 99 (Services).
- Middle 2 Digits (e.g., 83): Represents the Service Group / Heading (e.g., Heading 9983 = Other professional, technical & business services).
- Last 2 Digits (e.g., 14): Represents the specific Service Tariff Sub-heading (e.g., 998314 = Information technology design & development services).
Master SAC Code & GST Rate Chart 2026
Below is the statutory reference chart for major service categories under GST across key economic sectors in India:
| SAC Code | Heading | Service Description | GST Rate | Statutory Notes / RCM Status |
|---|---|---|---|---|
| 998314 | Heading 9983 | IT Design, Software Development & SaaS Services | 18% | Standard rate; 18% IGST on export unless LUT filed. |
| 998311 | Heading 9983 | Management Consulting & Business Advisory | 18% | Covers CFO advisory, strategy, corporate restructuring. |
| 998221 | Heading 9982 | Financial Auditing & Accounting (CA/CS Firms) | 18% | Statutory audit, tax audit, bookkeeping retainers. |
| 998211 | Heading 9982 | Legal Advisory & Advocate Representation | 18% | Mandatory 18% RCM under Entry 2 Notif 13/2017 if recipient is business entity. |
| 998231 | Heading 9982 | Taxation Advisory & Litigation Support | 18% | GST return filing, income tax appeals, notice drafting. |
| 997211 | Heading 9972 | Renting of Residential Dwelling | 18% | Mandatory RCM under Notif 05/2022 if rented to GST-registered entity. Excluded if proprietor home. |
| 997212 | Heading 9972 | Renting of Commercial Immovable Property | 18% | Forward charge if landlord registered; RCM under Notif 09/2024 if landlord unregistered. |
| 996331 | Heading 9963 | Restaurant Food Services (AC & Non-AC) | 5% | 5% without ITC for standalone restaurants. 18% with ITC if inside specified hotel (>₹7,500 tariff). |
| 996411 | Heading 9964 | Goods Transport Agency (GTA) Freight | 5% / 12% | 5% RCM without ITC (Entry 1 Notif 13/2017) or 12% Forward Charge with ITC. |
| 995411 | Heading 9954 | Commercial Construction & Infrastructure | 18% | Works contract services for commercial buildings. ITC allowed for contractor. |
| 995412 | Heading 9954 | Affordable Residential Housing Construction | 1% | Concessional 1% rate without ITC under RERA affordable housing scheme. |
| 997111 | Heading 9971 | Banking & Financial Processing Services | 18% | Loan processing fees, bank locker charges, DD charges. Interest on loans exempt. |
| 998511 | Heading 9985 | Executive Placement & Staffing Recruitment | 18% | Manpower supply and recruitment services. RCM for security manpower under Notif 29/2018. |
| 998413 | Heading 9984 | Telecommunications & Broadband Internet | 18% | Postpaid cellular connections, corporate leased lines, fiber broadband. |
Export of Services under Section 2(6) of IGST Act & Zero-Rating Rules
Cross-border IT, software, and consulting services classified under SAC 9983 qualify as Export of Services under Section 2(6) of the IGST Act 2017 if five statutory conditions are satisfied simultaneously:
- The supplier of service is located in India.
- The recipient of service is located outside India.
- The place of supply of service is outside India (determined under Section 13 of the IGST Act).
- The payment for such service has been received by the supplier in convertible foreign exchange (or in Indian Rupees wherever permitted by RBI).
- The supplier and recipient are not merely establishments of a distinct person in accordance with Explanation 1 in section 8.
Under Section 16 of the IGST Act, qualifying export of services is treated as a Zero-Rated Supply. Taxpayers can choose to export under a Letter of Undertaking (LUT) without paying IGST, or pay 18% IGST upfront and claim a full tax refund under Section 54.
Composite vs Mixed Supplies: Impact on SAC Code Selection
Under Section 8 of the CGST Act, service providers bundling multiple services into a single invoice must determine whether the contract constitutes a Composite Supply or a Mixed Supply:
- Composite Supply (Sec 8(a)): Two or more naturally bundled services supplied together in the ordinary course of business, where one is the principal supply. Tax Rate & SAC Code: Entire bundle takes the SAC code and tax rate of the Principal Supply. (Example: Software development SAC 998314 bundled with user training takes 18% IT rate).
- Mixed Supply (Sec 8(b)): Combination of two or more independent services supplied together for a single price, which are not naturally bundled. Tax Rate & SAC Code: Entire bundle takes the SAC code of the service carrying the Highest GST Tax Rate.
Worked Numerical Example: IT Consulting & Software Licensing Invoice
M/s TechNova Solutions LLP (GSTIN: 27AAAAA1111B1Z2) located in Mumbai contracts with a client in Bangalore to provide custom ERP software design, cloud hosting setup, and staff training for a total package of ₹10,00,000.
Analysis of Service Components:
- Custom ERP Software Design (Principal Supply → SAC 998314, Rate 18%).
- Cloud Server Deployment (Ancillary Service → SAC 998315, Rate 18%).
- End-user Staff Training (Ancillary Service → SAC 999293, Rate 18%).
Statutory Verdict: The contract constitutes a Composite Supply under Section 8(a). The principal supply is IT Software Design (SAC 998314). The entire billing is classified under SAC 998314 at 18% IGST.
Invoice Tax Calculation:
- Taxable Value of Composite Service: ₹10,00,000
- IGST @ 18% (Inter-state Maharashtra to Karnataka): ₹1,80,000
- Total Invoice Amount Payable: ₹11,80,000
Judicial Principles on Service Classification (Place of Supply)
The Supreme Court of India and various State Appellate Authorities for Advance Rulings (AAAR) have emphasized that place of supply rules under Section 12 and Section 13 of the IGST Act override general business descriptions. For instance, in intermediary services (SAC 998371), if an agent arranges cross-border sales between a foreign vendor and Indian buyers, the place of supply remains in India, making the 18% GST non-waivable even if payment arrives in USD.
Interactive Tools & Related Statutory Guides
Search any SAC or HSN code instantly with our interactive HSN & SAC Code Finder. Read our detailed guide on mandatory HSN digits under Mandatory HSN Code Digits (4 vs 6 vs 8 Digit Rules), check Reverse Charge Mechanism rules for legal and renting services using our RCM Applicability Checker, and calculate net cash interest on delayed tax deposits with our GST Interest Calculator.
Compliance Checklist for Service Providers
- Verify 6-Digit SAC Codes: Ensure all service billing items specify the exact 6-digit SAC code under Chapter 99.
- Check RCM Entries: Verify if the service supplied (such as GTA freight, legal fee, or renting) attracts Reverse Charge under Notification 13/2017.
- Separate Mixed Supplies: Avoid single-price bundling of unrelated services with different tax rates to protect against highest-rate tax assessments under Section 8(b).
- File Annual LUT for Exports: Ensure Form GST RFD-11 (LUT) is submitted prior to April 1 of each financial year to maintain zero-rated export status for SAC 9983 billing.