SAC Code
SAC Code stands for Services Accounting Code. It is a six-digit numerical classification system developed by the Central Board of Indirect Taxes and Customs (CBIC) to categorise every type of service under the GST framework in India. Just as goods are classified using HSN codes, services are classified using SAC codes — and together they form the backbone of India's GST classification system.
SAC codes are used on tax invoices, GST returns, and e-way bills to identify the nature of the service being supplied and determine the applicable GST rate.
Structure of a SAC Code
All SAC codes are 6 digits long and begin with 99, which universally identifies the code as a service (as opposed to a goods code under HSN). The remaining four digits further classify the service category and sub-category.
For example:
| SAC Code | Service Description |
|---|---|
| 998311 | Management consulting services |
| 998314 | Information technology (IT) consulting services |
| 998315 | IT design and development services |
| 997211 | Renting of residential buildings |
| 996111 | Road transport services of goods |
| 999293 | Educational support services |
SAC Code vs. HSN Code
| Feature | SAC Code | HSN Code |
|---|---|---|
| Applies to | Services | Goods |
| Digits | 6 | 4, 6, or 8 digits |
| Starts with | 99 | Varies by chapter |
| Governed by | CBIC (India) | World Customs Organization |
When Is a SAC Code Mandatory on an Invoice?
The requirement to mention SAC codes on a GST invoice depends on the supplier's annual turnover:
Taxpayers with annual turnover up to ₹5 crore are required to mention SAC codes at the 4-digit level on their invoices.
Taxpayers with annual turnover above ₹5 crore must mention the full 6-digit SAC code on every tax invoice.
Businesses registered under the Composition Scheme are not required to charge GST on their bill of supply, but SAC codes may still be referenced for classification purposes.
How to Find the Right SAC Code
The correct SAC code for a service can be found using:
- The GST portal (www.gst.gov.in) under the HSN/SAC search tool
- The CBIC website which publishes the full list of SAC codes
- JetInvoice's built-in SAC code search, which lets you find the right code by typing a service name or keyword
GST Rates Under SAC Codes
Each SAC code carries a defined GST rate — typically 0%, 5%, 12%, 18%, or 28%. The most common rate for professional and IT services is 18% GST. Some services like healthcare, education, and certain transportation services attract 0% or are exempt.
When a supplier issues a tax invoice, the GST rate applied must correspond to the correct SAC code. Using an incorrect SAC code can result in the wrong GST rate being charged, which may cause issues for the recipient's Input Tax Credit (ITC) claim.
SAC Codes Commonly Used by Freelancers
Freelancers and self-employed professionals in India most frequently use the following SAC codes:
| SAC Code | Service |
|---|---|
| 998311 | Management and business consulting |
| 998314 | IT consulting services |
| 998315 | Software development and design |
| 998361 | Advertising and marketing services |
| 999299 | Other educational and training services |
| 998212 | Legal services |
| 998221 | Accounting, auditing, and bookkeeping |
SAC Code and Place of Supply
For services, the place of supply determines whether CGST + SGST or IGST applies. The SAC code alone does not determine this — it is the combination of the SAC code (to find the rate) and the place of supply (to determine which tax head applies) that gives the complete GST picture on any service invoice.
Create service invoices with the correct SAC code and auto-calculated GST using JetInvoice's free GST Invoice Generator — search SAC codes by service name directly within the invoice creation flow.