Service Accounting Code is the abbreviation of SAC that was designed to classify services under the Goods and Services Tax in India. Since July 1, 2017, when GST came into effect, SAC and HSN codes have been used in order to classify services and goods respectively. SAC has been specifically designed for service-based industries whereas HSN codes are for goods. Such codes are necessary for preparing the GST invoice, and return filing, and to keep consistency between taxpayers.
SAC codes are assigned by the Central Board of Indirect Taxes and Customs of the GST, thereby providing a streamlined taxation process for all taxpayers plus making the calculation of tax and the processing easier with easier tracking of volumes of services in the market.
Structure of SAC Code
SAC is a 6-digit code that represents the service category. The structure is as follows:
- First two digits: Always “99” for all services.
- Middle two digits: Represent the type of service. For example, “54” indicates construction services.
- Last two digits: Define the specific nature of the service.
Example of SAC Code:
For instance, SAC Code 995411 refers to “Construction services of single or multi-dwelling residential buildings.”
- “99” signifies services.
- “54” represents construction.
- “11” specifies single-dwelling construction services.
SAC Code List for Different Services
Here’s a breakdown of SAC codes for various construction-related services:
SAC Codes for Construction Services of Buildings
- 995412: Construction of residential buildings (e.g., hostels, old-age homes).
- 995413: Construction of industrial buildings (e.g., workshops, factories).
- 995414: Construction of commercial buildings (e.g., malls, hotels, offices).
- 995415: Construction of non-residential buildings (e.g., schools, hospitals).
- 995416: Other building construction services not classified elsewhere.
- 995419: Repair, alteration, and maintenance services for these buildings.
SAC Codes for Civil Engineering Works
- 995421: Construction of highways, roads, bridges, tunnels.
- 995422: Construction of harbours, waterways, and dams.
- 995423: Construction of long-distance pipelines, and electric power lines.
- 995424: Construction of local water, sewage pipelines, and communication lines.
- 995425: Construction services for mines and industrial plants.
- 995426: Construction of power plants and related infrastructure.
- 995427: Construction of outdoor sports and recreational facilities.
- 995429: Repair and maintenance services for the above.
SAC Codes for Site Preparation Services
- 995431: Demolition services.
- 995432: Site preparation, including drilling, boring, and trench digging.
- 995433: Excavation and earth-moving services.
- 995434: Water well drilling and septic system installation.
- 995439: Repair and maintenance services related to site preparation.
SAC Codes for Assembly and Erection of Prefabricated Structures
- 995441: Installation of prefabricated buildings.
- 995442: Installation of other prefabricated structures.
- 995443: Installation of street furniture (e.g., bus shelters, public toilets).
- 995449: Repair and maintenance of prefabricated structures.
SAC Codes for Special Trade Construction Services
- 995451: Pile driving and foundation services.
- 995452: Building framing and roof framing services.
- 995453: Roofing and waterproofing services.
- 995454: Concrete services.
- 995455: Structural steel erection services.
- 995456: Masonry services.
- 995457: Scaffolding services.
- 995459: Repair and maintenance services for special trade constructions.
SAC Codes for Installation Services
- 995461: Electrical installation, including wiring, and alarm systems.
- 995462: Water plumbing and drainage installation.
- 995463: Heating, ventilation, and air conditioning installation.
- 995464: Gas fitting installation.
- 995465: Insulation services.
- 995466: Lift and escalator installation.
- 995469: Repair and maintenance of these installations.
SAC Codes for Building Completion Services
- 995471: Glazing services.
- 995472: Plastering services.
- 995473: Painting services.
- 995474: Floor and wall tiling services.
- 995475: Wall covering and wallpapering services.
- 995476: Joinery and carpentry services.
- 995477: Fencing and railing services.
- 995479: Repair and maintenance of completion works.
SAC Code for Job Work
The SAC code for Job Work is 9988, where “88” refers to job work services. Job work involves tasks related to manufacturing, processing, or any service where an item is worked upon. Here are some specific job work codes:
- 998821 to 998823: Job work related to textiles, apparel, and leather products.
- 998811 to 998819: Job work in food, beverage, and tobacco manufacturing.
- 998831: Job work in wood and paper manufacturing.
- 998841 to 998843: Job work in petroleum, chemical, and pharmaceutical product manufacturing.
- 998851 to 998853: Job work for rubber, plastic, and non-metallic products.
- 998871 to 998877: Job work in metal, machinery, and equipment manufacturing.
- 998881 to 998882: Job work in transport equipment manufacturing.
- 998891 to 998898: Job work for furniture, jewellery, sports goods, and medical instruments.
Conclusion
SAC codes are crucial for anyone involved in service-oriented industries under GST. They provide a structured system to classify services, ensure uniform taxation, simplify billing, and aid in tax calculations. Whether you’re in construction, site preparation, or job work, understanding and using the correct SAC codes is essential for compliance with GST.
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Frequently Asked Questions
What is the SAC Code?
SAC stands for Service Accounting Code; it is a unique code used in classifying services under the GST system in India. It helps categorize services for tax purposes and simplifies invoicing and tax filing.
Why SAC Code important to Business?
SAC codes are essential for a business as it is used while preparing GST bills, in filing tax returns, and taxes compliance. These help to standardize the process of taxation in each industry.
Difference between the SAC Code and the HSN Code?
In the matter of SAC code, the classification of services is done. HSN (Harmonized System of Nomenclature) codes, on the other hand, classify goods. Both codes speak about the nature of the service or commodity under GST.
How many digits does a SAC Code contain?
A SAC code contains 6 digits. The first two digits are always “99,” the next two determine the kind of service, and the last two detail the kind of service.
Example of a SAC Code?
Example, SAC Code 995411 is “Construction services of single-dwelling or multi-dwelling residential buildings.”
“The first two digits “99” indicate a service.
The third and fourth digits “54” denote construction.”.
“11” defines the construction work of a single dwelling.
What are the common SAC Codes for the construction services?
Some of the SAC codes for construction services are as follows:
995412: Dwelling houses in the form of hostels, old-age homes, etc.
995413: Industrial houses in the form of a factory, a workshop, etc.
995414: Commercial houses, in the shape of malls, offices, hotels, etc.
What is the SAC Code for Job Work?
9988 SAC Code for job work service encircles a series of services related to jobs like manufacturing, textiles, metals work, etc.
In what way does the SAC Code ease the tax processing?
SAC codes bring uniformity in tax calculations and invoicing. By classifying services, they make easy the determination of the applicable tax rates and simplify the entire process of tax filing.
Does SAC Codes help the government in any way?
Yes, SAC codes help the government track and monitor the volume and type of services provided across industries to regulate and manage tax collection.
How do I find the SAC Code for my business services?
You can find the relevant SAC code of your business by using the list published by the CBIC or other GST guidelines related to your industry as every kind of service has been assigned a special code.