SAC code
What SAC code means, where you will meet it and what it means for your business.
DefinitionA SAC code is the six-digit Services Accounting Code, beginning with 99, that classifies a service under GST and determines its tax rate on invoices and returns.
Where goods use HSN codes, services use SAC codes drawn from the UN Central Product Classification and adapted by the GST Council. Every SAC begins with 99, followed by two digits for the broad heading, such as 9983 for professional and technical services or 9984 for telecom and IT, and two more for the specific service. Most services sit at 18%, with a short list at 5% or nil. You must quote SAC on tax invoices to the same digit rule as HSN, at least 4 digits up to ₹5 crore turnover and 6 digits above, and summarise supplies by SAC in GSTR-1. You meet it when you set up your first invoice template and when registering for GST, where you declare your top services. What it means for you: a wrong SAC can put you at the wrong rate or the wrong place of supply, so confirm it once and keep it consistent.