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

SAC Code and GST Rate on Legal, Accounting and Professional Services – All you need to know

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.