SAC (Services Accounting Codes) List & GS is an all-in-one accounting solution that helps businesses efficiently manage their finances. With a comprehensive list of SAC codes and the General Ledger System, businesses can easily track and categorise their expenses, simplify tax filing, and gain better insights into their financial performance.
Since introducing GST laws in India in 2017, over 1 crore taxpayers have had doubts when filing for refunds or registering under the regime. The HSN and SAC code systems were introduced to classify services and goods under broad categories or groups.
To classify various services under the goods and services tax (GST) regime, the Central Board of Excise and Customs (CBEC) issues codes. The full form of the SAC term is "Services Accounting Code". Each service covered by the GST regime has a different SAC. Service providers may utilise these SACs in their bills for their services.
The government can analyse the GST revenues made for various services thanks to allocating specific SAC codes linked to certain services. The GST state codes have helped create a unified tax system in India, replacing multiple taxes such as VAT, CST, and Service Tax, which varied from state to state, making it difficult to conduct business nationwide.
Did you know? The central board of indirect tax (CBIT) issues SAC to categorise each service code and determine the applicable tax rate for that service.
What Are the Services Accounting Codes (SAC)?
The 6-digit services accounting codes in GST are called SAC under GST law. SAC codes are crucial for the company for the following reasons:
- Sac codes assist both the client and the business in identifying the applicable GST rates for a particular service.
- The SAC code must be stated while registering for GST and issuing GST invoices.
- These codes assist in identifying and separating the services from the vast array of other services offered.
What Are the Uses of SAC Codes?
Sac codes are used to categorise the numerous services that commercial businesses provide. The service provider must include the SAC code inside the invoice if their annual revenue exceeds ₹1.5 crores. Also, when filling out GSTrs, he or she should provide the SAC code. This helps the company save time and keep a close eye on the money.
Services HSN code stands for harmonised nomenclature system, which categorises products under the goods and services tax, or GST. In contrast, the SAC refers to the service accounting code, under which services are categorised by the GST law's inclusion of such services.
Also Read: What are the Steps to Pay GST Online?
How Do I Read the SAC Code 9954?
The SAC code consists of 6 digits. It's common to mix up the 9954 HSN and 9954 SAC codes. All services use the same first two digits. The service classification is represented by the SAC code's next two digits. The service and its nature are peculiar to the last two digits of the SAC code GST. Take the SAC code 995411 as an illustration.
- Construction of single-/multi-dwelling, multi-story residential buildings is under SAC Code 995411.
- All services share the number "99," whereas "54" denotes construction services.
- The residential construction services for single/multi-dwelling or multi-story buildings are indicated by the last two numerals, "11".
Like SAC 995412, SAC 995412 designates various residential buildings such as nursing homes, homeless shelters, hostels, etc., and 54 is for construction services.
The Services Accounting Codes in GST
The various SAC codes in GST are listed in the table below, along with the associated GST rates. The following table summarises the list of codes and the corresponding GST rates based on data updated on November 10, 2017, following the 23rd GST Council meeting.
|
SAC code |
Description of services |
Rates (%) |
|
99 |
|
Nil |
Services Accounting Codes for Constructing Services Including Buildings |
||
|
9954 |
|
Nil |
|
995411 |
|
18% |
|
995412 |
|
18% |
|
995413 |
|
18% |
|
995414 |
|
18% |
|
995415 |
|
18% |
|
995416 |
|
18% |
|
995419 |
|
18% |
Services Accounting Codes for the Construction Services involve General Civil Engineering Works |
||
|
995421 |
|
18% |
|
995422 |
|
18% |
|
995423 |
|
18% |
|
995424 |
|
18% |
|
995425 |
|
18% |
|
995426 |
|
18% |
|
995427 |
|
18% |
|
995428 |
|
18% |
|
995429 |
|
18% |
SAC in GST for Preparation Services |
||
|
995431 |
|
18% |
|
995432 |
|
18% |
|
995433 |
|
18% |
|
995434 |
|
18% |
|
995435 |
|
18% |
|
995439 |
|
18% |
Erection as Well as Assembly of Prefabricated Construction Service Accounting Code |
||
|
995441 |
|
18% |
|
995442 |
|
18% |
|
995443 |
|
18% |
|
995444 |
|
18% |
|
995449 |
|
18% |
Special Construction Trade Services SAC Codes in GST |
||
|
995451 |
|
18% |
|
995452 |
|
18% |
|
995453 |
|
18% |
|
995454 |
|
18% |
|
995455 |
|
18% |
|
995456 |
|
18% |
|
995457 |
|
18% |
|
995458 |
|
18% |
|
995459 |
|
18% |
Installation Services List of SAC Codes |
||
|
995461 |
|
18% |
|
995462 |
|
18% |
|
995463 |
|
18% |
|
995464 |
|
18% |
|
995465 |
|
18% |
|
995466 |
|
18% |
|
995468 |
|
18% |
|
995469 |
|
18% |
Also Read: GST emSinger | Web Based Software to Sign Document Digitally
Conclusion
A comprehensive range of services is included in the SAC code list under GST. 4 to 6 digits SAC codes are organised under distinct header and section numbers. Job works each has a unique SAC code. The chart above shows that other technical, professional, and business services are covered by the SAC code 9983. This code list is utilised while creating invoices and completing GST returns.
For Indian commodities, the harmonised system nomenclature (HSN) code is used. The HSN code is based on the multifunctional nomenclature code used by the world customs organisation (WCO) to identify items equally worldwide. On the other hand, the SAC coding system is based on the central product classification of the united nations (UN). But, the cubic has altered to fit the Indian setting.
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