HSN and SAC codes
HSN and SAC codes for law firms and advocates
Legal fees carry 18% on paper, but for most business clients the client pays it, not the advocate. Here are the codes and the rule that decides who pays.
In short
Advocates bill legal services under SAC group 99821, such as 998212 for advice and representation, usually at 18% under reverse charge for business clients. SimpleERP prints the code on every line and builds the HSN summary.
Illustration of GST tax invoice INV-2026-27-0213 to Ravi Stores with CGST 9% and SGST 9%, round off, a UPI QR code and the amount in words.
The data
The codes and usual rates
| Code | Goods or service | Usual GST rate | Notes |
|---|---|---|---|
| 998211 | Legal advisory and representation, criminal law | 18% | Reverse charge for business clients; exempt for individuals. |
| 998212 | Legal advisory and representation, other fields of law | 18% | Civil, corporate, tax and family matters. |
| 998213 | Legal documentation and certification for patents, copyrights and IP | 18% | Trademark and patent filings. |
| 998214 | Legal documentation and certification for other documents | 18% | Agreements, deeds, wills and notices. |
| 998215 | Arbitration and conciliation services | 18% | An arbitral tribunal follows a similar reverse charge rule. |
| 998216 | Other legal services | 18% | Legal services not covered above. |
| 4907 | Stamp paper (judicial and non-judicial) | Nil | Sold by government or licensed vendors; recover it from the client at cost. |
| 4901 | Law books and bare acts | Nil | Printed books. |
| 4820 | Registers, notebooks and diaries | check | Notebooks moved to nil on 22 September 2025; registers and diaries may differ. |
| 4802 | Copier paper (A4 and legal size) | check | Paper rates changed on 22 September 2025; confirm. |
| 4817 | Envelopes | 18% | Paper envelopes. |
| 9608 | Pens and markers | 18% | Ball-point pens and markers. |
| 8443 | Printers and toner cartridges | 18% | Check the heading for toner. |
Sources: CBIC: classification of services (SAC), CBIC: Customs tariff (HSN chapters), GST Council: rate changes effective 22 September 2025. Verified .
Which HSN and SAC codes does a law firm or advocate use?
A law practice sells services only: advice, appearances, drafting, notices, registration work and arbitration. These sit in SAC group 99821, with the six digits chosen by the kind of work. What it buys is ordinary office supply: paper, registers, files, pens, printer toner, law books and stamp paper for clients, each with an HSN code. The point that changes everything is the reverse charge rule, under which a business client usually pays the GST on an advocate's fee.
How to check a rate before billing
The rate on legal services did not change on 22 September 2025, but who pays it depends on the client. Check each new client before the first invoice. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.
- Is the client a business entity? If so, the client usually pays GST under reverse charge and your invoice shows none charged.
- Was its turnover in the previous year above the threshold? Below it, the service may be exempt.
- Is the client an individual in a personal matter? The service is usually exempt.
- Look up the six digits in the SAC list and confirm the treatment with your CA.
HSN and SAC on invoices and the GSTR-1 summary in SimpleERP
Set up each kind of work as a service with its SAC code, and the fee note carries it every time.
- One service per kind of work, such as appearance, drafting or opinion, each with its SAC code.
- Reimbursements such as stamp paper and court fees on separate lines, so the fee and the recovery are visible apart.
- Receipts against each fee note and a party statement for each client, with ageing of what is due.
- HSN summary report by code, exported to CSV for your CA. SimpleERP does not file the return.
Illustration of a profit and loss statement for April to September 2026 with net profit of ₹4,12,800, a GST summary and the lock date.
Reverse charge and exemptions that touch law firms
Legal services have their own reverse charge and exemption entries, as notified; check how they apply to each client.
- To a business entity above the turnover threshold: reverse charge, the client pays the tax.
- To an individual in a personal matter: usually exempt.
- To another advocate or firm of advocates, or to a business below the threshold: usually exempt.
- SimpleERP has no reverse charge flag on invoices; put the reverse charge wording in the invoice notes and set the line rate as your CA advises.
Honest limits
What SimpleERP does not do for law firms
- Case or matter management, hearing dates and court diaries. Use a CRM task with a due date for follow-ups.
- Client trust or escrow accounting.
- A reverse charge flag, e-invoice IRN and GST return filing.
FAQ
Questions, answered
What is the SAC code for legal services?
Legal services sit in SAC group 99821. Advice and representation are 998211 for criminal law and 998212 for other fields, documentation is 998213 or 998214, and arbitration 998215. The usual rate is 18%. Confirm the exact code against the SAC list.
Is GST on advocate fees paid under reverse charge?
Usually yes when the client is a business entity whose turnover in the previous year was above the threshold. The client then pays the tax and your fee note shows none charged. Services to individuals in personal matters are usually exempt. Confirm with your CA.
Does an advocate need GST registration?
Many advocates whose clients pay under reverse charge, or whose services are exempt, do not need to register. A firm with other taxable services may. This depends on your clients and turnover, so ask your CA before you register or stop charging.
What do I write on a fee note under reverse charge?
Show the SAC code, the fee and a line stating that the tax is payable by the recipient under reverse charge. In SimpleERP, put that wording in the invoice notes, since invoices carry no reverse charge flag. Your CA can confirm the exact words.
Related
Keep reading
GST billing for advocates
Fee notes with SAC 9982 codes, a reverse charge or exempt note, and court fees recovered at cost.
Read moreLaw firms and advocates
Fee notes under SAC 9982, client advances on account, court fees at cost and payroll for clerks.
Read moreReverse charge mechanism (RCM)
When the buyer pays GST on a purchase directly to the government instead of the supplier.
Read more
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