Service Accounting Code – SAC for GST India

Last Update Date : April 26, 2018

SAC

SAC stands for Services Accounting Codes, issued by the Central Board of Excise and Customs. These codes are a combination of numbers to identify the service type and the rate at which it is to be taxed. SAC has been in existence to define each type of service and proper levy of service tax.  This guide will help you understand how SAC codes can be used in invoices created for services to be delivered.

How Service Accounting Code is Derived

A uniform format is followed to generate the Service Accounting Code.

Example: The service name is Construction services of single dwelling or multi dwelling or multi-storied residential buildings. The SAC is 995411.

  • The first two digits are 99 always for services.
  • The next two digits 54 represent the major nature of service, real estate in this case.
  • The next two digits 11 represent the detailed nature of service, construction services in this case.

Below is the list of few services and their codes

Construction

Group 99541 – Construction Services

SAC Code Description
995411 Construction services of single dwelling or multi dwelling or multi-storied residential buildings
995412 Construction services of other residential buildings such as old age homes, homeless shelters, hostels etc
995413 Construction services of industrial buildings such as buildings used for production activities (used for assembly line activities), workshops, storage buildings and other similar industrial buildings
995414 Construction services of commercial buildings such as office buildings, exhibition & marriage halls, malls, hotels, restaurants, airports, rail or road terminals, parking garages, petrol and service stations, theatres and other similar buildings.
995415 Construction services of other non-residential buildings such as educational institutions, hospitals, clinics including vertical clinics, religious establishments, courts, prisons, museums and other similar buildings
995416 Construction Services of other buildings n.e.c
995419 Services involving Repair, alterations, additions, replacements, renovation, maintenance or re-modelling of the buildings covered above.

Group 99542 – General Construction Services of Civil Engineering Works

SAC Code Description
995421 General construction services of highways, streets, roads, railways and airfield runways, bridges and tunnels
995422 General construction services of harbours, waterways, dams, water mains and lines, irrigation and other waterworks
995423 General construction services of long-distance underground/overland/submarine pipelines, communication and electric power lines (cables); pumping stations and related works; transformer stations and related works.
995424 General construction services of local water & sewage pipelines, electricity and communication cables & related works
995425 General construction services of mines and industrial plants
995426 General Construction services of Power Plants and its related infrastructure
995427 General construction services of outdoor sport and recreation facilities
995428 General construction services of other civil engineering works n.e.c.
995429 Services involving Repair, alterations, additions, replacements, renovation, maintenance or re-modelling of the constructions covered above.

Group 99543 – Site Preparation Services

SAC Code Description
995431 Demolition services
995432 Site formation and clearance services including preparation services to make sites ready for subsequent construction work, test drilling & boring & core extraction, digging of trenches.
995433 Excavating and earthmoving services
995434 Water well drilling services and septic system installation services
995435 Other site preparation services n.e.c
995439 Services involving Repair, alterations, additions, replacements, maintenance of the constructions covered above.

Group 99544 – Assembly and Erection of Pre-fabricated Constructions

SAC Code Description
995441 Installation, assembly and erection services of prefabricated buildings
995442 Installation, assembly and erection services of other prefabricated structures and constructions
995443 Installation services of all types of street furniture (e.g., bus shelters, benches, telephone booths, public toilets, etc.)
995444 Other assembly and erection services n.e.c.
995449 Services involving Repair, alterations, additions, replacements, maintenance of the constructions covered above.

Group 99545 – Special Trade Construction Services

SAC Code Description
995451 Pile driving and foundation services
995452 Building framing & Roof Framing services
995453 Roofing and waterproofing services
995454 Concrete services
995455 Structural steel erection services
995456 Masonry services
995457 Scaffolding services
995458 Other special trade construction services n.e.c.
995459 Services involving Repair, alterations, additions, replacements, maintenance of the constructions covered above.

Installation and Finishing Services

Group 99546 – Installation

SAC Code Description
995461 Electrical installation services including Electrical wiring & fitting services, fire alarm installation services, burglar alarm system installation services.
995462 Water plumbing and drain laying services
995463 Heating, ventilation and air conditioning equipment installation services
995464 Gas fitting installation services
995465 Insulation services
995466 Lift and escalator installation services
995468 Other installation services n.e.c.
995469 Services involving Repair, alterations, additions, replacements, maintenance of the installations covered above.

Group 99547 – Building Completion and Finishing Services

SAC CODE Description
995471 Glazing services
995472 Plastering services
995473 Painting services
995474 Floor and wall tiling services
995475 Other floor laying, wall covering and wall papering services
995476 Joinery and carpentry services
995477 Fencing and railing services
995478 Other building completion and finishing services n.e.c.
995479 Services involving Repair, alterations, additions, replacements, maintenance of the completion/finishing works covered above.

Financial, Insurance and Banking Services

Group 99711 – Financial Services (except investment banking, insurance and pension)

SAC Code Description
997111 Central banking services
997112 Deposit services
997113 Credit-granting services including stand-by commitment, guarantees & securities
997114 Financial leasing services
997119 Other financial services (except investment banking, insurance services and pension services)

Group 99712 – Investment Banking

SAC CODE Description
997120 Investment banking services

Group 99713 – Insurance and Pension Services

SAC CODE Description
997131 Pension services
997132 Life insurance services (excluding reinsurance services)
997133 Accident and health insurance services
997134 Motor vehicle insurance services
997135 Marine, aviation, and other transport insurance services
997136 Freight insurance services & Travel insurance services
997137 Other property insurance services
997139 Other non-life insurance services (excluding reinsurance services)

Group 99714 – Re-insurance Services

SAC CODE Description
997141 Life reinsurance services
997142 Accident and health reinsurance services
997143 Motor vehicle reinsurance services
997144 Marine, aviation and other transport reinsurance ser
997145 Services
997146 Freight reinsurance services
997147 Other property reinsurance services
997149 Other non-life reinsurance services

Group 99715 – Services Auxiliary to Financial Services (except insurance and pension)

SAC CODE Description
997151 Services related to investment banking such as mergers & acquisition services, corporate finance & venture capital services
997152 Brokerage and related securities and commodities services including commodity exchange services
997153 Portfolio management services except pension funds
997154 Trust and custody services
997155 Services related to the administration of financial markets
997156 Financial consultancy services
997157 Foreign exchange services
997158 Financial transactions processing and clearing house services
997159 Other services auxiliary to financial services

Group 99716 – Services Auxiliary to Insurance and Pension

SAC CODE Description
997161 Insurance brokerage and agency services
997162 Insurance claims adjustment services
997163 Actuarial services
997164 Pension fund management services
997169 Other services auxiliary to insurance and pensions

Group 99717 – Financial Assets Holding Services

SAC CODE Description
997171 Services of holding equity of subsidiary companies
997172 Services of holding securities and other assets of trusts and funds and similar financial entities

Real Estate

Group 99721 – Real Estate Services (owned or leased)

SAC CODE Description
997211 Rental or leasing services involving own or leased residential property
997212 Rental or leasing services involving own or leased non-residential property
997213 Trade services of buildings
997214 Trade services of time-share properties
997215 Trade services of vacant and subdivided land

Group 99722 – Real Estate Services Fee/Commission Basis or Contract

SAC CODE Description
997221 Property management services on a fee/commission basis or contract basis
997222 Building sales on a fee/commission basis or contract basis
997223 Land sales on a fee/commission basis or contract basis
997224 Real estate appraisal services on a fee/commission basis or contract basis

Leasing and Rental

Group 99731 – Leasing/Rental Services of Machinery & Equipment

SAC CODES Description
997311 Leasing or rental services concerning transport equipment including containers, with or without operator
997312 Leasing or rental services concerning agricultural machinery and equipment with or without operator
997313 Leasing or rental services concerning construction machinery and equipment with or without operator
997314 Leasing or rental services concerning office machinery and equipment (except computers) with or without operator
997315 Leasing or rental services concerning computers with or without operators
997316 Leasing or rental services concerning telecommunications equipment with or without operator
997319 Leasing or rental services concerning other machinery and equipment with or without operator

Group 99732 – Leasing/Rental Services of Other Goods

SAC CODES Leasing or rental services concerning other goods
997321 Leasing or rental services concerning televisions, radios, video cassette recorders, projectors, audio systems and related equipment and accessories (Home entertainment equipment)
997322 Leasing or rental services concerning video tapes and disks (Home entertainment equipment)
997323 Leasing or rental services concerning furniture and other household appliances
997324 Leasing or rental services concerning pleasure and leisure equipment.
997325 Leasing or rental services concerning household linen.
997326 Leasing or rental services concerning textiles, clothing and footwear.
997327 Leasing or rental services concerning do-it-yourself machinery and equipment
997329 Leasing or rental services concerning other goods

Other

Group 99733 – Licensing Services For Use of Intellectual Property and Similar Products

SAC Codes Licensing services for the right to use intellectual property and similar products
997331 Licensing services for the right to use computer software and databases.
997332 Licensing services for the right to broadcast and show original films, sound recordings, radio and television programmes etc.
997333 Licensing services for the right to reproduce original art works
997334 Licensing services for the right to reprint and copy manuscripts, books, journals and periodicals.
997335 Licensing services for the right to use R&D products
997336 Licensing services for the right to use trademarks and franchises
997337 Licensing services for the right to use minerals including its exploration and evaluation
997338 Licensing services for right to use other natural resources including telecommunication spectrum
997339 Licensing services for the right to use other intellectual property products and other resources.

Services Account Codes vs HSN Codes

GST, as the name suggests considers tax on goods and services both. HSN is the Harmonized System of Nomenclature which is a unique code for all the goods charged to tax. Whereas, Services Accounting Code (SAC) is a unique code for all the services chargeable to tax.

For all your queries related to SAC codes and GST registration, compliance and reconciliation consult the experts at earlyGST by H&R Block India.  

 

 

 

 

 

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