SAC code: services classification under GST
A SAC (Services Accounting Code) classifies services under GST. SAC codes start with 99 and are six digits long, and decide the GST rate on a service.
Short answer
A SAC (Services Accounting Code) is the code used to classify services under GST, based on the scheme of classification of services adopted by the government. SAC codes fall under chapter 99 and are six digits long, starting with 99. They determine the GST rate on a service.
- Chapter
- 99
- Length
- 6 digits
- Invoice rule
- Same digit requirements as HSN by turnover
- Used in
- Tax invoices and GSTR-1 summary
How SAC codes are structured
The first two digits are always 99, which identifies services. The next two digits identify the major group of services, the fifth digit the sub-group, and the sixth the specific service. For example, heading 9983 covers other professional, technical and business services, within which more specific codes identify activities such as consulting and design. The classification scheme is published with the GST rate notifications for services, and rates are linked to the headings in it.
Using SAC codes correctly
Service providers should identify the SAC that best describes the main service and use it consistently in invoices, GSTR-1 and contracts. Where a service bundles several elements, the principal supply rules decide which classification and rate apply. Some services, such as specified healthcare and education services, are exempt, and the SAC helps identify them. Businesses with aggregate turnover above ₹5 crore must show the six-digit code on all invoices; smaller businesses must show at least four digits on B2B invoices.
Why it matters for startups
Tech startups often supply a mix of software licences, SaaS, implementation and support. The classification affects the GST rate and whether the supply is treated as goods or services. Decide the classification early with your adviser, document the reasoning, and apply it consistently so customer contracts, invoices and returns all match.
Related services
Sources
Written by the Refogo Editorial Team from the official sources above and checked on 2026-10-31. Laws, rates and due dates change, and authorities often extend deadlines, so confirm your own case with a qualified professional. This is general information, not legal or tax advice. Read our editorial policy or report an error to support@refogo.com.
Common questions
Is SAC different from HSN?
Yes. HSN codes classify goods, while SAC codes classify services. Both are reported in the same columns of invoices and returns.
Where can I find SAC codes?
The GST portal's search facility and the services rate notifications list the codes and applicable rates.
Do exporters of services need a SAC code?
Yes. Export invoices also show the SAC, even though exports are zero-rated.