SAC Code

Posted by Savita Baghel
On 28 Mar 2020

What is SAC Code?

Now, as we all know we have universal system code HSN for goods similarly like goods, services are also classified uniformly for recognition, measurement and taxation. Codes for services are called Services Accounting Code or SAC.

SAC Code in GST

Services Accounting Code also called as SAC Code is a classification system for services developed by the Service Tax Department of India. Using GST SAC code, the GST rates for servicec are fixed in five slabs namely 0%, 5%, 12%, 18% and 28%.

Indian Taxation System has categorized roughly over 120 services for levy of GST under 5 broad categories or tax-slabs.

What criteria defined for use in GST?

With the help of GST SAC code, the GST rates for services are fixed in five slabs namely 0%, 5%, 12%, 18%, and 28%, due to this we can easily issue invoices as per Government GST SAC Code List. We can Easily find the services from service accounting list on Government official site as well.

Now Indian Taxation Systems  has catagorized roughly 120 services under GST and we have to use SAC Code likewise below:

  • The first 2 digits (99) are common for all services.
  • The next 2 digits represent the major nature of service.
  • The last 2 digits represent the detailed nature of service.

EXAMPLE :
SAC– 995414

Construction services of commercial buildings such as office buildings, exhibition & marriage halls, malls, hotels, restaurants, airports, rail or road terminals, parking garages, petrol and service stations, theatres and other similar buildings.

SAC –Section Wise Summary   – GST Rates for taxable services may be checked at Govt Website                                 

Section

Service Description

Section 5

Construction Services

Section 6

Distributive Trade Services ; Accomodation, Food & Beverage Service; Transport Services; Gas & Electricity Distribution Services

Section 7

Financial and related services; real estate services; and rental and leasing services

Section 8

Business and Production Services

Section 9

Community, Social & Personal Services and other miscellaneous services

Construction Services:

Distributive Trade Services ; Accomodation, Food & Beverage Service; Transport Services; Gas & Electricity Distribution Services

Financial and related services; real estate services; and rental and leasing services

Business and Production Services

Community, Social & Personal Services and other miscellaneous services

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