SAC Code (Services Accounting Code)

SAC stands for Services Accounting Code — the service-sector equivalent of HSN codes (which classify goods). Under GST, every service you provide must be classified using a SAC code. This code determines the applicable GST rate and must appear on your tax invoices.

SAC codes are 6 digits. The structure: first two digits are always "99" (indicating services), the next two identify the service category, and the last two narrow it further. For example: 998314 = IT design and development services, 998361 = management consulting, 998312 = computer programming services.

Common SAC codes for freelancers: 998314 (web/app design and development), 998361 (management and business consulting), 998397 (other professional and technical services), 998312 (computer programming and software development), 998511 (accounting and bookkeeping). Look up the full list on the CBIC website.

Using the correct SAC code matters. If you classify your service incorrectly and the applicable GST rate differs, you could end up underpaying or overpaying tax. During audits, the tax department cross-references SAC codes against service descriptions. Consistency across your invoices is important.

If you provide multiple types of services to the same client, list each service as a separate line item with its own SAC code. PropCraft's GST invoicing lets you assign SAC codes per line item.