A SAC (Services Accounting Code) is a six-digit code that classifies services under GST. Every SAC starts with 99 (Chapter 99, 'All Services'), followed by a heading, group and service code. Registered service providers print the SAC on tax invoices (at least 4 or 6 digits depending on turnover) and report it in the HSN summary of GSTR-1.
Goods have HSN codes; services have SAC codes. If you run a consultancy, an IT company, a contractor business, a salon or a transport firm, the SAC is the number that identifies what you sell and links your invoice to the right GST entry. This guide explains what a SAC code is, how to read one, and how to use it correctly on invoices and returns.
For the goods side, see what is HSN code.
What does SAC stand for?
SAC stands for Services Accounting Code. It began under the old service tax regime and was carried into GST through the "Scheme of Classification of Services", which is an annexure to Notification 11/2017-Central Tax (Rate). That notification is the main rate notification for services, and it has been amended many times, most recently in a large way by Notification 15/2025-Central Tax (Rate), dated 17 September 2025, effective 22 September 2025.
Every SAC sits in Chapter 99 — All Services. That is why every SAC begins with "99".
How is a SAC code structured?
The official scheme arranges services as Chapter, Section, Heading, Group and Service code:
| Level | Example | Meaning |
|---|---|---|
| Chapter | 99 | All Services |
| Section | 5 | Construction Services |
| Heading | 9954 | Construction services |
| Group | 99541 | Construction services of buildings |
| Service code | 995411 | Construction services of single dwelling or multi-dwelling or multi-storied residential buildings |
So a six-digit SAC reads as: 99 (chapter) + 54 (heading within the chapter) + 1 (group) + 1 (specific service).
Another example from the same official list:
| Code | Description |
|---|---|
| 9983 | Other professional, technical and business services |
| 99831 | Management consulting and management services; information technology services |
| 998311 | Management consulting and management services including financial, strategic, human resources, marketing, operations and supply chain management |
| 998313 | Information technology consulting and support services |
| 998314 | Information technology design and development services |
| 998315 | Hosting and IT infrastructure provisioning services |
What are some common SAC codes?
The table below lists headings and codes taken from the official classification scheme. Rates are not shown because many service entries depend on conditions; check the current rate notification for each.
| SAC | Service (as described in the official scheme) |
|---|---|
| 9954 | Construction services |
| 995461 | Electrical installation services including wiring and fitting |
| 995462 | Water plumbing and drain laying services |
| 995473 | Painting services |
| 9983 | Other professional, technical and business services |
| 998312 | Business consulting services including public relations services |
| 998313 | IT consulting and support services |
| 998314 | IT design and development services |
| 998316 | IT infrastructure and network management services |
| 998319 | Other IT services nowhere else classified |
| 99841 | Telephony and other telecommunications services |
| 998434 | Software downloads |
Dedicated guides cover SAC codes for IT services and SAC codes for construction services.
How does the SAC connect to the GST rate?
For goods, the rate notification is a schedule of HSN codes. For services, Notification 11/2017-Central Tax (Rate) is a table where each serial number covers a heading (such as "Heading 9983") and then lists items with descriptions, rates and conditions.
This means:
- The SAC tells you which serial number to read.
- The description and conditions within that serial number tell you the rate.
- Some entries carry a condition about input tax credit (for example, a lower rate available only if ITC on inputs is not taken).
Example: In the September 2025 amendment, Notification 15/2025 changed several items. Under serial number 3 (construction), three works-contract items had their central tax rate changed to 9% (i.e. 18% in total with state tax). Under serial number 21 (Heading 9983), item (ii) was redrafted to read "Other professional, technical and business services other than (i) above and serial number 38 below". Changes like these are why you should read the amended entry, not an old rate chart.
Worked example: a consultancy invoice
A Mumbai management consultancy (AATO ₹2.4 crore last year) bills a client in Bengaluru for a strategy project. Because the supply is inter-state, IGST applies.
| Line | SAC | Taxable value |
|---|---|---|
| Strategy and operations consulting | 9983 (4-digit minimum) or 998311 | ₹3,00,000 |
| Out-of-pocket travel recovered as part of the service | same SAC as main service | ₹20,000 |
The consultancy confirms that this service falls under the general entry for Heading 9983 at 18% IGST.
- Taxable value: ₹3,20,000
- IGST at 18%: ₹57,600
- Invoice total: ₹3,77,600
The travel recovery is billed under the same SAC because it is part of the consultancy service, not a separate supply. If you are unsure whether a reimbursement is part of the taxable value, discuss it with your tax adviser; a true "pure agent" recovery is treated differently.
How many SAC digits do I need on an invoice?
The same rule that applies to HSN applies to SAC (Notification 78/2020-Central Tax):
- AATO up to ₹5 crore in the previous year: at least 4 digits (for example, 9983).
- AATO above ₹5 crore: at least 6 digits (for example, 998314).
From the May 2025 return period, Table 12 of GSTR-1 requires codes to be picked from a drop-down list rather than typed, so the SAC you print must exist in the portal's master. Read HSN code digits on invoice for full details.
How do I choose the right SAC for my service?
- Describe your service in one sentence, focusing on what the customer actually receives.
- Find the section in the official scheme (for example, construction, financial services, professional services, transport).
- Pick the heading and group that best match the description.
- Choose the six-digit code with the closest wording. Use "nowhere else classified" codes only when no specific code fits.
- Open Notification 11/2017-Central Tax (Rate) as amended and read the entry for that heading to confirm the rate and any conditions.
- Record the code in your item master so every invoice uses it.
If you supply a bundle (for example, software development plus hosting), decide whether it is a composite supply with one principal service or separate supplies, and code accordingly.
Billing Software by Betterwork lets you save SAC and rate on each service item, so recurring invoices and credit notes always carry the same code. You can also generate a quick bill with the free GST invoice generator.
How are SAC sections organised?
The official Scheme of Classification of Services groups all services into sections before headings. Knowing the sections makes it much faster to find a code:
| Section | Covers (broadly) | Example headings |
|---|---|---|
| 5 | Construction services | 9954 |
| 6 | Distributive trade; accommodation, food and beverage; transport; gas and electricity distribution | 9963 (accommodation, food and beverage), 9965 (goods transport), 9967 (supporting transport services) |
| 7 | Financial and related services; real estate; leasing and rental | 9971 (financial), 9972 (real estate), 9973 (leasing or rental) |
| 8 | Business and production services | 9983 (professional, technical and business), 9984 (telecommunications and broadcasting), 9985 (support services), 9987 (maintenance and repair), 9988 (manufacturing on others' inputs) |
| 9 | Community, social and personal services | 9992 (education), 9993 (health), 9997 (other services) |
Start with the section, then the heading, and only then search for the six-digit service code.
Can one business use several SAC codes?
Yes, and many do. A digital agency might bill website development under 998314, social-media management under an advertising code, and hosting under 998315. A transporter might bill goods transport and warehousing separately.
The rules of thumb are:
- One SAC per invoice line, matching what that line actually charges for.
- A composite supply (two or more services naturally bundled, with one principal service) takes the SAC and rate of the principal service.
- A mixed supply (items bundled for a single price that are not naturally bundled) is taxed at the rate of the item with the highest rate.
- Separate supplies at separate prices should be shown on separate lines with their own SACs.
Getting this right keeps your HSN/SAC summary in GSTR-1 accurate, and it makes rate changes easier to apply because each service line can be updated independently.
How do I check my SAC before I print the first invoice?
- Write a one-line description of what you actually do for the client.
- Find the section and heading in the Scheme of Classification of Services that matches.
- Read the explanatory notes for the headings that look close; they list what is included and excluded.
- Pick the 6-digit service code that best fits, even if you print only 4 digits.
- Find the rate entry in the services rate notification and note any conditions.
- Save the code with the service in your billing software, and review it whenever your offering changes.
- Test one invoice end to end. Check that the code, rate and tax split print correctly and appear in your HSN/SAC summary for GSTR-1 before you send invoices to clients.
Common mistakes with SAC codes
- Using an HSN code for a service. If the code does not start with 99, it is not a SAC.
- Picking a "nowhere else classified" code by default. It can hide a specific entry with a different rate.
- Assuming one rate for a whole heading. Rates inside one serial number can differ by condition.
- Using pre-September-2025 rate charts. Notification 15/2025 changed several service rates from 22 September 2025.
- Different codes for the same service across branches. This makes HSN summaries inconsistent across GSTINs.
- Ignoring reverse charge. Some services are taxed under reverse charge; the SAC still goes on the document. See reverse charge mechanism.
Key takeaways
- SAC is the GST classification code for services; all SACs begin with 99.
- The official list is the Scheme of Classification of Services annexed to Notification 11/2017-CT(Rate).
- Rates come from the amended Notification 11/2017-CT(Rate), read with conditions; the September 2025 changes matter.
- Show at least 4 digits (AATO up to ₹5 crore) or 6 digits (above ₹5 crore).
- Store the SAC on each service item so invoices and returns stay consistent.
This guide is general information, not tax advice. Rules last checked on 20 October 2026; confirm with your tax professional for your situation.