SAC Code
Definition
Services Accounting Code — used to classify services under GST, similar to HSN codes for goods. 6-digit codes. For example: 998311 for management consulting, 997212 for renting of residential property.
Why is SAC Code Important?
Navigating the Indian tax system requires a clear understanding of terms like SAC Code. With the introduction of the new income tax regime alongside the old one, taxpayers must evaluate their deductions, exemptions, and tax brackets carefully. This concept is a key component in optimizing your tax liabilities under the Income Tax Act and GST framework.
Proper tax planning using this metric can help individuals and businesses maximize their take-home income while remaining fully compliant with government regulations. We provide free tax calculators to help you estimate these figures accurately and make informed decisions before filing your returns.
What is a SAC Code?
SAC (Services Accounting Code) is a classification code used under GST to identify and categorize services. While HSN codes are used for goods, SAC codes serve the same purpose for services. SAC codes determine the applicable GST rate on a particular service.
SAC Code Structure
Example: 998314
- 99: All services start with 99
- 9983: Group (Other professional, technical, and business services)
- 998314: Specific service (Engineering services)
Common SAC Codes
| SAC Code | Service | GST Rate |
|---|---|---|
| 998313 | Accounting & auditing | 18% |
| 998314 | Engineering services | 18% |
| 997212 | Renting of residential property | Exempt/18% |
| 998511 | Consulting services | 18% |