The SAC (Service and Accounting Code) code is a system based on a codified system of nomenclature by which all products exported and imported into the world are classified, and a system for codifying products recognized internationally. These codes make it easy to understand and classify the products.
There is a 6 digit code in GST which is the classification of the products. For example, the SAC code for Design and Development Services under Information Technology (IT) is 997764. The first two digits in the code given under SAC are same for all types of services i.e. 99.
Use SAC code
SAC codes are an important part of import and export business. The businessmen should use the SAC code for providing the service while filing the GSTR.
What is SAC Code?
A classification system issued by the Service Tax Department of India to classify certain different services to business (CBIC) and to develop the business itself is expressed as SAC or Service Accounting Code. These codes are used to classify products and services to classify products for better measurement, taxation associated with them and recognition of services. SAC codes are used to classify services and are regulated by the Central Board of Excise and Customs (CBEC).
The SAC (Service and Accounting Code) codes have been developed on a harmonized system of naming the products through which all the products of the world are classified and codified primarily for import and export and these SAC codes are established on an international level recognized system. Through this system, it is important to understand the products on the basis of international standards and enable them to comply with GST. This system provides the government with a common structure from which the data related to the sale and purchase of products is needed for the appropriate type of collaboration and analysis.
Understanding 6 Digit SAC in GST
Take as an example
The SAC code given for Information Technology (IT) Design and Development Services is 998314.
- The first two digits in the given SAC code are the same for all services which is 99.
- The two digits in the middle of the code indicate the predominant nature of services, in the given code these are IT services
- The last two digits indicate the broad nature of the services. In the given code these are showing the design and development services.
Section 05 – Construction related services
Title Product Description
- 9954 Construction related Services
Section 06 – Distributive business services; Accommodation, food and beverage service; transport related services; Gas and electricity related distribution services
Title description
- 9961 Wholesale Trade Related Services
- 9962 Retail trade related services
- 9963 Services relating to accommodation, food and beverage services
- 9964 PASSENGER TRANSPORT RELATED SERVICES
- 9965 Services related to transport of goods
- 9966 Rental services for transport vehicles with or without operators
- 9967 Services related to assistant in transport
- 9968 Postal and Courier Related Services
- 9969 Electricity, gas, water and other distribution related services
Section 07 – All financial and related services; services related to real estate; and rental and leasing services
Title description
- 9971 Financial and related services
- 9972 Real Estate Services
- 9973 Leasing or rental related services with or without operator
Section 08 – Services relating to trade and production
Title description
- 9981 R&D Services
- 9982 Legal and Accounting Services
- 9983 Other professional, technical and business related services
- 9984 Services relating to telecommunications, broadcasting and information supply
- 9985 Support related Services
- 9986 Services related to agriculture, hunting, forestry, fishing, mining and support for utilities.
- 9987 Services relating to maintenance, repair and installation (excluding construction)
- 9988 Services relating to manufacturing on physical inputs (goods) owned by others
- 9989 Other services related to manufacturing, publishing, printing and reproduction services; material recovery services
Section 09 – Services relating to community, social and personal and other miscellaneous
Title description
- 9991 Other types of services connected with public administration and provided to the community as a whole; Essential Social Security Services
- 9992 Education Related Services
- 9993 Services related to human health and social care
- 9994 Sewage and waste collection related services or connected, treatment and disposal and other services related to environmental protection
- 9995 Services related to membership organizations
- 9996 Recreational, cultural and sporting services
- 9997 Other Miscellaneous Services
- 9998 Domestic Services
- 9999 Services provided by extraterrestrial organizations and bodies.
- 9954 Construction Services
Section 06 – Distributive business services; Accommodation, food and beverage service; transport related services; Gas and electricity related distribution services
Title description
- 9961 Wholesale Trade Related Services
- 9962 Retail trade related services
- 9963 Services relating to accommodation, food and beverage services
- 9964 Passenger transport related services
- 9965 Services related to transport of goods
- 9966 Services relating to rental of transport vehicles with or without operators
- 9967 Services related to assistant in transport
- 9968 Postal and Courier Related Services
- 9969 Electricity, gas, water and other distribution related services
SAC code finder
HSN and SAC codes can be distinguished by the difference that HSN codes are used to identify the identity of goods and SAC codes are used to understand and identify different types of services. Another difference between these two types of codes is the number of digits presents in the code, e.g., HSN code consists of 8 digit codes for products, and SAC codes contain 6 digit codes for services.
To find tax rates linked to HSN/SAC
- Go to the homepage of the GST linked portal and login with all the valid credentials
- Click in the box of HSN Code
- Select tax type
- Search Chapter of HSN by service or product name or code
- Find and click on HSN Code
- Select the appropriate dates through the calendar and click on it
- Click on the search option for “Search”
- Find and select the state.
- Click on the checkbox for SAC code.
- Select tax related type
- Enter the Classification Code (SAC) for the service and click
- Also enter whatever Service Classification Code (SAC) you are looking for under “Service by Name or Code”.
- Select the appropriate correct dates in the “Effective period” category through the calendar.
- Click on the option of “Search” and get information about the related services
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