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Glossary GST

SAC code

Definition

A SAC (Services Accounting Code) is the six-digit code, starting with 99, that classifies services under GST, as HSN codes do for goods.

Updated 2026-11-052 min read

Example

A Hyderabad AC dealer installs a split AC for a customer. The AC itself carries its HSN code, while the ₹1,500 installation charge carries a SAC code from the installation services heading. In GSTR-1's HSN summary, the two show as separate lines.

SAC code in TallyPrime and in Cashflow OS

Where to find itIn TallyPrime

In TallyPrime a service you bill is usually a ledger such as Installation charges, with GST details including the SAC. When used on a sales voucher, the SAC prints on the invoice and goes into the HSN/SAC summary.

On your phoneIn Cashflow OS

Cashflow OS's GSTR-1 view, prepared from the Tally data, has HSN-wise detail where service lines appear under their SAC codes.

See how it works
SAC code in the Cashflow OS app

Common misunderstandings

  • Watch outGiving goods a SAC code or services an HSN code, which mixes up the summary.
  • Watch outGiving freight or packing on a goods bill its own SAC when it may follow the main supply.

How SAC codes are built

Every SAC code starts with 99, which marks it as a service. The next two digits give the broad heading, and the last two narrow it down. For example, codes beginning 9954 cover construction services and those beginning 9987 cover maintenance and repair services. The rate notification for services is arranged by these headings, so the SAC helps decide which GST rate applies.

For goods you use HSN instead; see the HSN code entry.

Example

An appliance service centre repairs a customer's washing machine. The bill has two parts: a spare part worth ₹1,200 and a labour charge of ₹800. The spare part is goods and carries its own HSN code. The labour charge is a repair service and carries a SAC code from the maintenance and repair heading. If both are taxed at 18%, the GST is ₹216 on the part and ₹144 on the service, ₹360 in all. In the HSN summary of GSTR-1 the two lines appear separately, one under the part's HSN and one under the service's SAC.

Repair businesses often mix goods and services on one bill; our guide on GST for service and repair businesses covers when that matters.

Where it shows up in TallyPrime

In TallyPrime, a service you bill is usually a ledger (for example “Repair charges” or “Installation charges”) with GST applicability turned on and the SAC entered in its GST details. When that ledger is used on a sales voucher, TallyPrime prints the SAC and includes the value in the HSN/SAC summary. Freight or packing charges that you add to a goods invoice may follow the main supply instead of having their own SAC; take advice before you set those ledgers up.

This is general information, not tax advice.

Related terms

HSN codeGSTR-1Reverse charge (RCM)VoucherAll terms A–Z

Questions about SAC code

How many digits of SAC should an invoice show?
SAC codes are six digits. The number of digits required on invoices depends on turnover rules that can change by notification, so check cbic-gst.gov.in.
Is SAC needed for services I receive?
Your supplier puts the SAC on their invoice. You need it in your own books mainly where you pay tax under reverse charge and raise a self-invoice.
Can one invoice have both HSN and SAC?
Yes. Each line carries the code that fits it: HSN for goods and SAC for services.
Where can I find the list of SAC codes?
The services classification is published by CBIC and is searchable on the GST portal's HSN/SAC search. Check that the code you pick matches the service you supply.
Does a SAC code decide the GST rate?
Largely, since the services rate notification is arranged by these headings, though some rates depend on conditions. Confirm the rate on cbic-gst.gov.in.

This page is general information for Indian businesses, not tax, legal or financial advice. Rules and rates change — check the official portals or your CA before acting.

Read more about SAC code

All guides
GST basicsHSN and SAC codes explainedHSN codes classify goods and SAC codes classify services. Your turnover decides how many digits you must print on invoices, and the code you pick deci4 min readGST for servicesGST for service and repair businessesA repair business supplies two things: the parts it fits and the work it does. How you bill them decides the GST rate, and services have their own rul3 min readService billingInvoices for repair and service jobsA repair invoice usually mixes two things: spare parts (goods) and labour (a service). Showing each line with its own HSN or SAC, and agreeing the est3 min readGST returnsHSN summary in GSTR-1 (Table 12)Table 12 of GSTR-1 summarises all your sales for the period by HSN or SAC code, with quantity, unit, taxable value and tax. It must add up to the rest4 min read

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