Table of Contents
What Is A SAC Code?
A SAC code is defined as a system of classification that is introduced by the Service Tax Department of India in order to categorize various services conveniently. These codes are used for proper classification so that it benefits taxation, better estimation and identification of services. The codes issued by the Service Tax Department are operated by the Central Board Of Excise and Customs (CBEC).
Services and Accounting Codes are related to an internationally recognised system, that is the Harmonized System of Nomenclature for classifying all the services. It benefits the government by providing them with a common structure that assists accurate collaboration of data related to sale and purchase and also supports proper analysis.
In case the turnover of a service provider is more than Rs 1.5 crores, the SAC code should be mentioned in an invoice. During GSTR filings, an individual can state the SAC code for automated form filling as it saves time and money.
Classifying The Different SAC Codes
There are different SAC code GST rates based on Legal, Accounting and Professional Services that are fixed by the GST council. The GST rates for different services drop under 0% or 5%, 12%, 18% or 28% slab. All the individuals and professionals who fall under the taxable community should acquire GST registration. Let’s take a look at the different SAC code GST rates depending on Legal, Accounting and Professional Services in India:
SAC Codes Based On Legal Services:
SAC Code 998211 – Legal advisory and services that concern criminal law
SAC Code 998212 – Legal advisory that deals with other fields of law
SAC Code 998213 – Legal documentation that deals with copyrights and property rights
SAC Code 998214 – Legal documentation that concerns other documents
SAC Code 998215 – Arbitration services
SAC Code 998216 – Other legal services
SAC Codes Based On Accounting Services:
SAC Code 998221 – Services concerning financial auditing
SAC Code 998222 – Services that are concerned with accounting and bookkeeping
SAC Code 998223 – Services that are concerned with payroll
SAC Code 998224 – Other services similar to accounting.
The SAC code GST rate is 18%.
SAC Codes Based On Tax Consultancy
SAC Code 998231 – Services concerning corporate tax consulting
SAC Code 998232 – Services that are concerned with individual tax preparation
The SAC code GST rate is 18%
SAC Codes Based On Professional Services
SAC Code 998391 – Services based on interior designing, fashion designing and other designing areas
SAC Code 998392 – Services based on original designs
SAC Code 998393 – Services based on scientific and technical consulting
SAC Code 998394 – Compilation of facts and details
SAC Code 998395 – Services based on translation
SAC Code 998396 – Services based on trademarks
SAC Code 998397 – Services based on sponsorship and promotion of the brand
SAC Code 998399 – Other professional service
The GST rate for professional services is also 18%.
SAC Codes Based On Insolvency Services
SAC Code 998240 – Services based on receivership
The GST rate for these services is 18%.
The SAC code GST rates for different services help the dealers, individuals and businessmen obtain a clear understanding of the tax that is levied on the services that they offer or receive. Businesses who provide services should make use of the SAC codes while filing GSTR. Since the current services in India are GDP driven jobs, it is crucial for every individual to have knowledge about the SAC codes. It is also methodical for the businesses to classify the different services as per the SAC codes as it is easier to codify all the products. Therefore, the SAC codes and GST rates are a very authentic way to classify services.