SAC Code

SAC stands for Services Accounting Code — a 6-digit code issued by the Central Board of Indirect Taxes and Customs (CBIC) to classify services under India’s GST system, similar to how HSN codes classify goods.

Every service invoice in India should mention the relevant SAC code so the correct GST rate is applied and so tax authorities can identify what service was provided. If you’re a freelancer or agency issuing GST invoices, using the correct SAC code matters for GST return filing (GSTR-1) accuracy and reduces the chance of mismatches during reconciliation.

A SAC code always has 6 digits, and the structure is consistent across every code: the first two digits are always "99", marking it as a service (as opposed to a good, which uses an HSN code). The next two digits identify the broad service category — for example, "83" for legal and accounting-adjacent services. The final two digits narrow it down to the specific service within that category.

So a code like 998314 breaks down as: 99 (service), 83 (this category grouping), 14 (the specific service — IT design and development in this case). Once you know one code in a category, related services in the same group are usually easy to recognize by their shared middle digits.

These are some of the SAC codes freelancers and small agencies in India use most often. Always cross-check against the official CBIC classification if your service doesn’t clearly match one of these, since some categories have multiple similar-sounding codes.

Whether you need to show 4 digits or the full 6 digits of your SAC code on an invoice generally depends on your business’s aggregate turnover in the preceding financial year — businesses below a certain turnover threshold have historically been permitted to show fewer digits, while larger businesses are required to show the full 6-digit code on invoices and in GSTR-1.

Because these turnover thresholds and disclosure requirements are set through GST notifications and can change, confirm the current requirement for your turnover slab on the official GST portal rather than assuming a rule from a previous year still applies.

The most frequent issue is using a generic or "closest guess" code instead of the one that actually matches the service delivered — for instance, billing UI/UX design work under a generic IT services code instead of the design-specific one. This doesn’t usually change your GST rate (most professional services are taxed at 18% either way), but it can cause friction during GSTR-1 reconciliation if a client’s system expects a matching classification.

Another common mistake is inconsistency — using one SAC code on some invoices and a different one for the same service on others. Picking one correct code per service you offer and reusing it consistently avoids this entirely.