The Central Board of Indirect Taxes and Customs developed the SAC code nomenclature, which is used by the GST Registration System. These codes help identify services and their respective GST rates so that the correct tax amount may be determined.In India, a comprehensive indirect tax known as the Goods and Services Tax (GST) is imposed on the provision of goods and services. Value Added Tax (VAT), Service Tax, Central Excise Duty, and Customs Duty have all been replaced by it. Every registered taxpayer must submit monthly or quarterly returns based on their turnover because GST is a self-assessment tax. The creation of an internet gateway has made the procedure of filing a GST return simple and convenient. We will go over how to submit a GST return online in this article.

What is the GST SAC Code?

The service tax division in India created the Servicing Accounting Code, or SAC, which is a framework for categorizing services. To levy GST in India, the GST Council has chosen to use the SAC code system. A six-digit code that designates a specific service is referred to as a SAC in GST law.When submitting Goods and Services Tax Returns (GSTR) for services including hospitality, education, finance, and others, service providers must utilize SAC codes. Companies with a revenue of less than Rs. 1.5 crores are not required to use SAC codes, but those with a turnover of between Rs. 1.5 and 5 crores must. Companies with a turnover of more than Rs. 5 Cr. must specify their SAC code.

GST rates and SAC codes for different services 

The first two digits of the SAC are always 99, and they are followed by the middle two numbers, which stand for the primary service type, and the last two digits, which provide particular service information. Several SAC code and GST rate samples are given below:

➨The six-digit SAC code for this service is 9968, with the last two digits varying based on the particular courier service being provided. This service's GST rate is 18%.

➨Services related to recruiting and human resources have the six-digit SAC code 9985, with the final two numbers varying according to the particular recruitment and HR service being provided. This service's GST rate is 18%.

➨ Legal Services: The service's six-digit SAC code is 9982, with the final two digits varying based on the particular legal service being provided. This service's GST rate is 18%.

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SAC code advantages Companies can gain a number of advantages with SAC codes, including 

➨ Determining the service's applicable GST rates The applicable GST rates for a specific service are determined using the SAC codes. Based on their nature and classification, the GST rates for various services may change. Businesses can simply ascertain the appropriate GST rate for a service and guarantee that they are collecting the appropriate amount of tax from their clients by using the SAC code system. In addition to assisting in GST compliance, this also makes sure that clients are not overcharged or undercharged for the services they receive.

➨Separating services from other offerings 

SAC codes also aid in identifying services among the many other services that are provided. These codes allow businesses to quickly categorize their services and set them apart from other services or goods they provide. This makes it easier to report and comply with GST requirements and aids in keeping the records and accounts organized. Businesses can ensure that their services are accurately classified under the GST system and avoid any misunderstandings or confusion by using SAC codes.

➨Supporting the submission of GST invoices 

When creating GST invoices and registering for GST, SAC codes must be specified. Businesses may make sure they give their clients accurate and thorough information about the services they offer by using SAC codes. The creation of GST invoices in a uniform format and the submission of GST returns are both made easier by SAC codes. Businesses are required to disclose their sales, purchases, and the tax that was paid on them on the GST forms. Businesses can quickly identify the services for which they have applied GST by utilizing SAC codes, and they can then include this information in their GST filings. By doing so, businesses can comply with GST laws and assist to prevent errors or anomalies in GST filings.

Conclusion 

SAC codes, which range from four to six digits long, are divided into groups according to heading and section numbers. Technical, professional, and business services fall under SAC code 9983. Each employment has a unique SAC code. These codes are required in India, where the services-driven GDP underpins millions of jobs, for the creation of invoices and the filing of GST reports.