A classification code used under India's GST system to identify and categorize services for taxation purposes.
SAC codes are the service equivalent of HSN codes (which classify goods). SAC codes are 6-digit numbers starting with 99. They classify services into categories like professional services, construction, transportation, financial services, etc. SAC codes determine the GST rate applicable to each service and must be mentioned on tax invoices for service providers.
IT software development services fall under SAC 998314. Management consulting is SAC 998311. When a software company invoices a client, it must mention SAC 998314 with 18% GST.
Ensures accurate financial reporting and record-keeping
Helps maintain regulatory and tax compliance
Enables better-informed business decisions
Improves operational efficiency and cash flow management
HSN codes classify GOODS (products). SAC codes classify SERVICES. HSN codes are internationally standardized (WCO). SAC codes are India-specific for GST. Both determine the applicable tax rate.
Yes, for all service providers registered under GST. The SAC code must appear on tax invoices to correctly identify the service category and applicable tax rate.
Harmonized System of Nomenclature — an internationally standardized system of names and numbers to classify traded products, used in GST for goods classification.
A comprehensive indirect tax levied on the supply of goods and services in India, replacing multiple earlier taxes like VAT, excise duty, and service tax.
A standardized electronic invoicing system under GST in India where invoices are authenticated by the Invoice Registration Portal (IRP) before being issued.
A commercial document issued by a seller to a buyer, detailing the products or services provided, quantities, prices, and payment terms.
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