SAC codes
SAC codes and GST rates for CA firms, consultants and service businesses
An audit, a month of bookkeeping, a GST return prepared, a strategy engagement. Each is a service with its own six-digit SAC code under group 9982 or 9983.
In short
CA firms bill audit under SAC 998221, bookkeeping under 998222 and tax work under 998231, usually at 18%. SimpleERP keeps each service's SAC code and rate, prints it on the invoice and lists it in 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
| SAC | Service | Usual GST rate | Notes |
|---|---|---|---|
| 998221 | Financial auditing (statutory, internal, tax audit) | 18% | Audit fees of a CA firm |
| 998222 | Accounting and bookkeeping | 18% | Monthly accounts and ledgers |
| 998223 | Payroll services | 18% | Salary processing for clients |
| 998231 | Corporate tax consulting and preparation | 18% | GST and income tax work for businesses |
| 998232 | Individual tax preparation and planning | 18% | Personal income tax returns |
| 998212 | Legal advisory and representation, other fields of law | 18% | Advocate to a business is usually under reverse charge |
| 998214 | Notarial services | Check | Check exemption and reverse charge |
| 998311 | Management consulting | 18% | Strategy, operations, finance consulting |
| 998312 | Business consulting, including public relations | 18% | Check the code against 998311 |
| 998321 | Architectural advisory | 18% | Design and planning advice |
| 998331 | Engineering advisory | 18% | Technical consulting |
| 998391 | Specialty design, including interior design | 18% | Interior, fashion and graphic design |
| 998371 | Market research | 18% | Surveys and studies |
| 998512 | Permanent placement | 18% | Recruitment fees |
| 999293 | Commercial training and coaching | 18% | Recognised education can be exempt; check |
| 997212 | Rental of commercial property | 18% | Rent on your office; under reverse charge in some cases |
Sources: CBIC: Customs tariff (HSN chapters), GST Council: rate changes effective 22 September 2025, CBIC: GST rates and notifications. Verified .
Which SAC codes does a professional services firm use most?
Professional services sit in SAC heading 9982 for legal and accounting work and 9983 for consulting, technical and design work. A CA firm lives mostly in 99822, accounting, auditing and bookkeeping, and 99823, tax consultancy. A management consultant bills under 99831, an architect under 99832 and an interior designer under 99839.
Most of these services carry 18%. The cases to watch are not the rate but who pays it: legal services from an advocate to a business usually fall under reverse charge, and some services to government bodies or charities are exempt. See legal services and accounting and bookkeeping for single-code detail.
How to check a rate before billing
The 22 September 2025 changes left most professional services at 18%. The questions that still need an answer before you bill are about the client and the contract, not only the code.
- Find the six-digit SAC that describes the service, not the profession: a CA firm doing payroll uses 998223, not 998222.
- Check reverse charge: legal services from an advocate to a business usually shift the tax to the client.
- Check exemption: some services to government bodies, charities and recognised educational institutions are exempt.
- Check the place of supply: the client's registered state decides CGST and SGST or IGST. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.
HSN on invoices and the GSTR-1 HSN summary in SimpleERP
In SimpleERP each service is a product with a SAC code and a rate. The SAC prints on the invoice line, and the month's fees appear in the HSN summary, which reports goods and services together.
- Service products for audit, bookkeeping and tax work, each with its own SAC.
- Place of supply from the client's GSTIN, so the tax heads split on their own.
- HSN summary report with taxable value and tax per SAC for GSTR-1, exportable to CSV.
- Retainers are raised by hand each month: pick the client and the saved service, and the SAC and rate fill in.
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.
Inputs and input tax credit for professional firms
A firm's inputs are rent, software subscriptions, laptops, travel and the fees of other professionals it engages. Most carry 18% and can be claimed against the GST on fees, subject to the blocked-credit rules.
- Office rent usually carries 18%; when the landlord is unregistered, reverse charge can apply.
- Software, phones and laptops are claimed as credit; laptops can sit in the fixed asset register.
- Legal fees you pay to an advocate are often under reverse charge, so you pay the tax and claim it.
- The purchase register in SimpleERP lists credit by rate for the monthly check.
FAQ
Questions, answered
What is the SAC code for CA services?
A CA firm's work usually falls under SAC 99822 and 99823: 998221 for auditing, 998222 for accounting and bookkeeping, 998223 for payroll and 998231 for corporate tax consulting. These are commonly billed at 18%. Confirm the code that fits each engagement with the firm's own records.
What is the SAC code for consultancy services?
Management consulting usually falls under SAC 998311, and business consulting, including public relations, under 998312. Both are commonly billed at 18%. Engineering consulting sits under 998331 and IT consulting under 998313, so pick the code that matches the advice you give.
Do legal services fall under reverse charge?
Usually, when an advocate or firm of advocates supplies legal services to a business entity, the business pays the GST under reverse charge. In SimpleERP the advocate bills the fee without tax and puts the reverse charge wording in the invoice notes. Check the conditions for your clients with a CA.
Can one invoice mix fees and out-of-pocket expenses?
Yes. Fees and reimbursements can be separate lines with their own SAC and rate. Whether a reimbursement is part of the taxable value depends on whether you act as a pure agent, so ask your CA before you bill it without tax.
Related
Keep reading
GST billing for CA firms
Fee invoices for audits, returns and retainers with the right SAC code, IGST for clients in other states and TDS-aware receipts.
Read moreProfessional services
SAC-coded invoices with place of supply, quotations, a CRM pipeline, expense claims and payroll.
Read moreSAC code
The code that classifies services for GST, as HSN codes do for goods.
Read more
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