SAC codes form the backbone of service classification under GST. Whether you are a freelancer, agency owner, software developer, trainer, consultant or digital marketer, you must use the correct SAC code on your invoices to avoid GST issues and stay fully compliant.
We are exploring “What is SAC Code in GST Invoice” in this article, with all the important information at your fingertips.
Let’s start our journey!
What is the SAC code on the GST invoice?
A SAC code (accounting code for services) is a 6-digit code used to classify services under GST in India. Just like goods have HSN codeshave services SAC codes.
Example:
- Digital Marketing Services → 998365
- SEO services → 998366
- Website development → 998314
- Business advice → 998312
Every time you issue a GST invoice for a service, you must provide the correct SAC code.
Why is SAC code required in GST invoice?
SAC code is mandatory because it helps:
- Apply the correct GST rate (18% for most services)
- Identify the exact service category
- Avoid tax misclassification
- Avoid fines or notices
- Ensure an accurate GST return (GSTR-1, GSTR-3B)
- Support smooth audits and compliance checks
In short, every service provider must use the SAC code on their GST invoice.
How does the SAC code work? (Simply explained)
Contains a SAC code 6 digits:
- First 2 digits (99) → Represents ‘Services’.
- Next 2 digits → Service category
- Last 2 digits → Specific service type
Example: 998365
- 99 → Services
- 83 → Advertising and marketing
- 65 → Digital Marketing Services
Just by reading the numbers, the GST department can identify itself which service you have provided exactly.
List of common SAC codes (most useful section)
| Service type | SAC code |
|---|---|
| Digital Marketing Services | 998365 |
| SEO services | 998366 |
| Website development | 998314 |
| App development | 998315 |
| Graphic design | 998397 |
| IT advice | 998313 |
| Business advice | 998312 |
| SaaS/software licenses | 997331 |
| Photography / Videography | 998386 |
| Online Coaching/Courses | 999293 |
| Social media management | 998364 |
| Advertising Services | 998361 |
| Data processing services | 998311 |
You can add more categories depending on your specific business needs.
Where can you find the correct SAC code?
- Visit the official CBIC GST portal: search by service keyword (marketing, consulting, IT, etc.)
- Use Google with the search “SAC code for ____ service”
- Check GST Rates PDF (Government Approved Lists)
- Use the same SAC code for all your invoices
This ensures consistency during audits and archiving.
SAC Code vs HSN Code (Simple Difference Table)
| Function | SAC code | HSN code |
|---|---|---|
| Used for | Services | Goods |
| Number of digits | 6 | 6 or 8 |
| Mandatory for | All service providers | Manufacturers, traders |
| Example | 998365 | 300490 |
If you provide servicesyou always use S.A.Cnot HSN.
Sample GST invoice with SAC code
Service provided: Digital marketing
SAC code: 998365
GST rate: 18%
The invoice must contain the following:
- Service description
- SAC code
- GST rate
- Taxable amount
- CGST/SGST or IGST
- Total invoice value
Correct billing example:
Digital Marketing Services (SAC 998365) – ₹50,000 + 18% GST
Who should use the SAC code?
Anyone providing services under GST:
- Freelancers
- Digital marketers
- SEO experts
- Website and app developers
- Advisors
- Photographers
- Trainers
- Agencies
- Software companies
- Coaching institutes
- Social media managers
If you create invoices → You must use the SAC code.
Benefits of using the correct SAC code
- Compliance with GST Laws
- Avoid fines or notices
- Submit correct VAT return
- Professional and clean invoices
- Trusted by customers and auditors
Wrong SAC code can lead to mismatches while filing GSTR-1.
Practical tips for choosing the right SAC code
- Use the official CBIC list (not random websites)
- Customize your service EXACTLY
- Don’t mix two different categories
- Use separate SAC codes for multi-service invoices
- Keep a written list for your business team
- Update services regularly as your business grows
Frequently asked questions 🙂
A. Yes, it is mandatory for all service providers.
A. This may cause GST discrepancies, notices or penalties.
A. Yes – if they are GST registered.
A. On the CBIC GST portal.
A. Most professional services do, but certain services have a rate of 5%, 12% or NIL.
A. Yes, each service category has its own code.
Conclusion 🙂
Understanding the SAC code is essential for any GST registered service provider in India. It ensures your invoice is legally compliant, clearly defines the type of service you offer and helps you apply the correct GST rate without any confusion. Whether you are a freelancer, consultant, digital marketer, agency owner or IT professional, adding the right SAC code builds trust, avoids fines and ensures your GST returns are smooth and error-free.
In short, SAC codes make your invoices transparent, professional and fully GST-ready. Always check your service category, choose the correct SAC code and keep your details up to date for hassle-free compliance.
“Billing accuracy is not just compliance, it is a sign of professionalism.” – Mr. Rahman, CEO Oflox®
Also read:)
Have you tried using the SAC code in your GST billing? Share your experiences or ask your questions in the comments below. We’d love to hear from you!
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