If you provide a service—whether you're an IT consultant, a graphic designer, or running a marketing agency—you must classify your services correctly under GST. This is done using a SAC Code.
What is a SAC Code?
The Services Accounting Code (SAC) is a unified system of measurement and classification of services used by the Central Board of Indirect Taxes and Customs (CBIC) in India.
Every SAC code is 6 digits long and always begins with 99 (which identifies it as a service). The next two digits identify the major nature of the service, and the final two digits specify the detailed nature of the service.
Common SAC Codes for Freelancers & Agencies
| Service Category | SAC Code | Standard GST Rate |
|---|---|---|
| IT Software Development Services | 998314 | 18% |
| Graphic Design Services | 998391 | 18% |
| Management Consulting | 998311 | 18% |
| Advertising Services | 998361 | 18% |
*Note: GST rates can change. Always verify the current rate for your SAC code with the official GST portal.
How to add SAC Codes on Invoices?
The SAC code should be entered for each line item on your invoice. If you are using an invoice generator, you can enter it in the HSN/SAC column. Because services don't have physical quantities, the "Unit" is often set to "Hours", "Days", or "Lump sum".