SAC Code List for GST Invoice — Service Tax Rates India 2026 Complete Guide
SAC (Services Accounting Code) is the GST equivalent of HSN code but for services. Every service provider registered under GST must include the correct SAC code on their invoice. This guide lists SAC codes and GST rates for the most common services in India.
HSN codes classify goods under GST — SAC codes do the same for services. SAC stands for Services Accounting Code, a classification system developed by the Service Tax department and adopted under GST. Every GST-registered business providing services must mention the correct SAC code on their invoice. Incorrect or missing SAC codes can lead to scrutiny notices and ITC mismatch issues.
SAC Code Structure
SAC codes are 6 digits long. The first two digits are always '99' (identifying it as a service). The next two digits identify the service category, and the last two identify the specific service. For example, SAC code 998313 is 'Information Technology Consulting Services'.
When must you mention SAC code?
Businesses with annual turnover above ₹5 crore must mention the 6-digit SAC code. Below ₹5 crore, a 4-digit SAC code is sufficient. Below ₹1.5 crore, mentioning SAC code is optional but recommended for clean documentation.
SAC Codes & GST Rates for Common Services in India
| Service | SAC Code | GST Rate |
|---|---|---|
| IT Software Development / Programming | 998311 | 18% |
| IT Consulting Services | 998313 | 18% |
| IT Support & Maintenance | 998314 | 18% |
| Web Design & Development | 998313 | 18% |
| Digital Marketing / SEO / Social Media | 998364 | 18% |
| Management Consulting | 998311 | 18% |
| Accounting & Auditing Services | 998221 | 18% |
| Legal Services | 998211 | 18% |
| Architectural Services | 998311 | 18% |
| Engineering & Technical Consulting | 998312 | 18% |
| Photography & Videography | 998392 | 18% |
| Graphic Design / Animation | 998391 | 18% |
| Event Management Services | 998596 | 18% |
| Catering Services | 996334 | 5% (no ITC) or 18% (with ITC) |
| Construction Services (works contract) | 995411 | 12% or 18% |
| Repair & Maintenance Services | 995429 | 18% |
| Courier & Delivery Services | 996812 | 18% |
| Freight Transport by Road (GTA) | 996511 | 5% (RCM) or 12% |
| Beauty & Salon Services | 999721 | 18% |
| Fitness / Gym / Yoga Classes | 999313 | 18% |
| Tuition & Coaching Services | 999292 | 18% (above threshold) |
| Health & Medical Services (private) | 999311 | Exempt or 5% |
| Renting of Commercial Property | 997212 | 18% |
| Security Guard Services | 998525 | 18% |
Exempt Services (0% GST)
- Health and medical services by a clinical establishment, authorised medical practitioner
- Educational services by educational institutions (schools, colleges, universities)
- Services by a recognised religious body or charitable trust
- Public transportation — metro, local trains, buses (not auto/taxi)
- Services related to agriculture — renting of agri machinery, warehousing of produce
- Life insurance premium (basic term plan) and some health insurance
How to Find the Right SAC Code for Your Service
- 1Visit the GST Council's official portal (gst.gov.in) and use the HSN/SAC search tool.
- 2Use the classification booklet published by CBIC — 'Services Accounting Codes (SAC) Booklet'.
- 3Consult your CA if your service falls in an ambiguous category (e.g., works contract vs. pure service).
- 4When in doubt, use the 4-digit SAC code (the broader category) — it is always valid for businesses below ₹5 crore turnover.
Adding SAC Code to Your Invoice in Ozydo
Ozydo's invoice form includes a HSN/SAC code field for each line item. Simply enter your SAC code when adding a service line. The generated PDF invoice will display the code correctly in the items section, making your invoice fully GST-compliant.
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Start Free →Frequently Asked Questions
What is the SAC code for freelance services?
Most freelance services fall under SAC 998311 (IT & other business consulting) at 18% GST. Graphic designers use 998391, photographers use 998392, and event managers use 998596. If you provide multiple service types, use the SAC code matching each line item on your invoice.
Is SAC code mandatory on invoices below ₹1.5 crore?
Not legally mandatory for businesses with turnover below ₹1.5 crore, but highly recommended. Corporate clients often require SAC codes for their own ITC claims and vendor registration processes. Ozydo supports adding SAC codes regardless of your turnover.
What is the SAC code for construction labour?
For pure labour contracts in construction, SAC code is 995461. For works contracts (material + labour combined), it is 995411 for residential construction at 12% GST (without ITC) and 995416 for commercial construction at 18%.
Can I use an incorrect SAC code on my invoice?
Using an incorrect SAC code can lead to ITC mismatch notices for your buyer and potential scrutiny for you. It is worth taking 5 minutes to confirm the correct code. The CBIC SAC booklet is the official reference — always prefer that over unofficial third-party lists.
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Written by the Ozydo Team
Ozydo is India's simplest free GST invoice app for small businesses and freelancers. We write practical guides on invoicing, GST, and business finance to help you get paid faster.
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