SAC Code and GST Rate

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. 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.