GST

SAC Code and GST Rate on Legal, Accounting and Professional Services

SAC Code & GST Rate on Legal, Accounting, and Professional Services

Introduction

The GST Council established the GST rate for legal, accounting, and professional services. Services are subject to  5%, 12%, 18%, or 28% GST rates. The GST rate is determined by the SAC code, which is a services classification system developed by the service tax department. In this article, we will look at the SAC code and GST rate in India for legal, accounting, and professional services. Professionals who are taxable under GST must obtain GST Registration. Let’s have a basic understanding of SAC (Service Accounting Code), before moving to the SAC Code and GST rate on Legal, Accounting and Professional Services.

SAC (Service Accounting Code)

The term “SAC” stands for Servicing Accounting Code. The service tax department in India has developed the SAC Codes as a system of categorization for services. The GST Council has opted to use the SAC code system for the purpose to levy GST (Goods and Service Tax) in India.

SAC refers to the 6-digit code in GST under GST law. For example, the SAC for IT design and development services is 998314.

  • For all services, the first two digits of the SAC are the same, which is 99.
  • In this case, the major type of services will be represented by the middle two digits (83) are IT services.
  • The last two digits (14) will indicate the details for the Design and Development services.

Advantages of SAC Code

There are several benefits of SAC codes given below :

  • SAC codes assist both the client and the business in identifying the applicable GST rates for a certain service.
  • SAC codes must be mentioned while registering for GST and sending out GST invoices.
  • These codes help to identify and separate the services from the wide range of other services that are offered.

SAC Code and GST rate on Legal, Accounting and Professional Services

 

  • SAC Code and GST rate on Legal Services

 

SAC Code

Particulars

GST Rate

998211

Legal consultation and representation in criminal law.

18%

998212

Other types of legal advice and representation are available.

18%

998213

Services for patent, copyright, and other intellectual property documentation and certification.

18%

998214

Other document legal documentation and certification services

18%

998215

Services for arbitration and conciliation

18%

998216

Additional legal services

18%

 

  • SAC Code and GST rate on Accounting Services

 

SAC Code

Particulars

GST Rate

998221

Financial Auditing Services

18%

998222

Accounting and Bookkeeping Services

18%

998223

Payroll Services

18%

998224

Other similar services

18%

 

  • SAC Code and GST Rate on Professional Services

 

SAC Code

Particulars

GST Rate

998391

Interior design, fashion design, industrial design, and other specialised design services are available.

18%

998392

Original designs

18%

998393

Services for scientific and technical consulting

18%

998394

original fact/information compilations

18%

998395

Services for translation and interpretation

18%

998396

Franchises and trademarks

18%

998397

Services for Sponsorship and Brand Promotion

18%

998398

Other specialists, technical and business services

18%

Final Thoughts

SAC codes are four to six digits long and are classified by heading and section numbers. Job functions have their own SAC code. SAC code 9983 covers other technical, professional, and business services. These codes are used to generate invoices and submit GST returns.

Zarana Mehta

Zarana Mehta is an MBA in Finance from Gujarat Technology University. Though having a masters degree in Business Administration, her upbeat and optimistic approach for changes led her to pursue her passion i.e. Creative writing. She is currently working as Content Writer at Ebizfiling.

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