GST · Glossary
SAC (Services Accounting Code)
6-digit code that classifies services for GST reporting (the services equivalent of HSN).
SAC is a 6-digit standardised code used to classify services for GST, prescribed by Notification 11/2017-CT(R) dated 28 June 2017 (services rate schedule). Every service provided by a freelancer or business has a corresponding SAC under the GSTN taxonomy. Examples for freelancers:
- 998313: IT consulting and support
- 998314: Software development and design
- 998361: Advertising services
- 998391: Specialty design services
- 998212: Legal documentation
SAC disclosure is mandatory on B2B invoices when the supplier's prior-year aggregate turnover was Rs. 5 crore or more (6-digit); 4-digit otherwise. Below that threshold, SAC is optional but recommended for clear classification and audit defence.
Worked example
For a UI/UX design engagement, the right SAC is 998314 (IT Design & Development), not 998391 (Specialty Design) — the latter is for non-screen design like packaging or industrial. Picking the wrong one doesn’t change the 18% rate but creates ITC-audit friction for the client.
Practitioner tip
Map your top 3 service lines to one SAC each and lock them in your invoicing template. Switching SAC per invoice is the #1 source of GSTR-1 Table 12 inconsistencies.
Related Tool
Free GST Invoice Generator →GST rates & SAC codes
Browse all GST rates & SAC codes →Related glossary terms
- HSN (Harmonized System of Nomenclature) — 6-8 digit code that classifies goods for GST reporting (the goods equivalent of SAC).
- GSTR-1 — Monthly or quarterly return of outward supplies (sales) filed by every registered taxpayer.
- GSTIN — 15-character alphanumeric GST registration number assigned to every GST-registered taxpayer.
More in GST
These definitions are educational. Tax laws change annually — verify with a Chartered Accountant before making GST or income-tax decisions.