HSN and SAC codes

HSN and SAC codes for security services agencies

Name: HSN and SAC codes for security services agencies
Creator: SimpleERP
License: https://simpleerpsoftware.com/legal/terms

A guarding agency bills one service every month and buys a lot of uniforms and equipment to deliver it. Here are the codes both sides usually carry.

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In short

Security agencies bill guarding under SAC 998525 or 998529 at 18%, often under reverse charge when the agency is not a company. SimpleERP prints the code on each line and builds the HSN summary for GSTR-1.

Lakshmi Steel Furnitures

14 Avinashi Road, Peelamedu, Coimbatore 641004

GSTIN 33AAACL1234A1ZG

Tax invoice

INV-2026-27-0213

Date 03/10/2026

Bill to

Ravi Stores

Big Bazaar Street, Coimbatore 641001

GSTIN 33ABCPR4821K1ZN

Place of supply

Tamil Nadu (33)

Due 02/11/2026

Item	HSN	Qty	Rate	Taxable
Steel rack 4 shelf	9403	2	4,990.00	₹9,980.00

Scan to pay by UPI

lakshmisteel@okhdfc

Taxable value: ₹9,980.00
CGST 9%: ₹898.20
SGST 9%: ₹898.20
Round off: −0.40
Total: ₹11,776.00

Amount in words: Eleven thousand seven hundred seventy-six rupees only

The data

The codes and usual rates

Code	Goods or service	Usual GST rate	Notes
998525	Guard services	18%	Reverse charge applies when the agency is not a body corporate and the client is registered.
998529	Other security services	18%	Patrolling, bouncers and services not listed separately.
998521	Investigation services	18%	Background checks and detective work.
998522	Security consulting services	18%	Site audits and security planning.
998523	Security systems services (alarm and CCTV monitoring)	18%	Remote monitoring of systems you or the client installed.
998524	Armoured car services	18%	Cash-in-transit work.
998519	Other employment and labour supply services	18%	If the contract is staff supply rather than security; check which fits.
6203	Men's uniform trousers and suits	5%	Up to ₹2,500 per piece; 18% above. The 5% band was widened on 22 September 2025.
6205	Men's uniform shirts	5%	Same ₹2,500 per piece threshold.
6211	Tracksuits and other uniform garments	5%	Same ₹2,500 per piece threshold.
6505	Caps and berets	5%	Check the rate for the material.
6403	Leather shoes and boots	5%	Up to ₹2,500 per pair; 18% above.
8525	CCTV cameras	18%	Cameras you resell or install for clients.
8521	DVRs and NVRs	18%	Video recorders for CCTV systems.
8531	Alarm systems and sirens	18%	Burglar and fire alarm panels.
8517	Walkie-talkies and two-way radios	18%	Check the exact heading for the model.
8513	Torches and hand lamps	18%	Portable battery-powered lamps.

Usual rates after 22 September 2025, verified on the date shown. Who pays the tax on guard services depends on what kind of entity the agency is. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.

Sources: CBIC: classification of services (SAC), CBIC: Customs tariff (HSN chapters), GST Council: rate changes effective 22 September 2025. Verified 10 October 2026.

Which HSN and SAC codes does a security services agency use?

A security agency's sales are almost all services: guards posted at a site, supervisors, patrolling, investigation and sometimes monitoring of alarm or CCTV systems. These sit in SAC group 99852. On the buying side the agency pays for uniforms, caps, shoes, torches, batons, walkie-talkies and the CCTV or alarm equipment it installs for clients, each with its own HSN code. The question that matters most is not the code but who pays the tax: for many agencies the client pays it under reverse charge.

What changed on 22 September 2025 for security agencies?

Guarding services stayed at 18%. What moved was clothing: the 5% band for garments and footwear now runs up to ₹2,500 per piece, up from ₹1,000, so most guard uniforms and shoes you buy now carry 5% instead of 12%. Uniforms above ₹2,500 a piece are 18%. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.

Check your purchase bills for uniforms after 22 September 2025; the supplier's rate should reflect the new band.
If you resell uniforms to clients, update the rate on each product before you bill.
Equipment such as cameras and alarms stayed at 18%.

HSN and SAC on invoices and the GSTR-1 summary in SimpleERP

Most agencies bill one monthly invoice per site; the code sits on the service and prints on every line.

One service per role: guard, supervisor and gunman as separate services with their own SAC code and rate.
Equipment lines with HSN codes on the same invoice when you supply cameras or alarms.
CGST and SGST or IGST from the client site's place of supply.
HSN summary report by code, exported to CSV for your CA. SimpleERP does not file the return.
Guard salaries run through payroll with PF, PT and TDS on the payslip, and post to the same ledger.

app.simpleerpsoftware.com/o/lakshmi-steel/accounting/reports

Profit and loss

Apr–Sep 2026

Sales₹18,42,600

Cost of goods sold(₹10,38,900)

Gross profit₹8,03,700

Salaries and wages(₹2,48,000)

Rent(₹72,000)

Power and fuel(₹38,400)

Other expenses(₹32,500)

Total expenses(₹3,90,900)

Net profit₹4,12,800

GST summary

Output tax₹3,31,668

Input tax₹1,75,554

Net payable₹1,56,114

Books locked to 30/06/2026. Postings on or before it are refused.

The HSN summary groups guard services, consulting and equipment by code for the HSN table of GSTR-1.

Reverse charge and exemptions that touch security agencies

Security services carry their own reverse charge rule, as notified; check how it applies to each client.

Agency that is not a body corporate (a proprietor or partnership) supplying to a registered client: the client usually pays the tax under reverse charge, and your invoice shows no GST charged.
Agency that is a company: you charge 18% on the invoice in the normal way.
Clients outside the rule, such as some government bodies registered only for TDS and composition dealers, are billed under forward charge; check each one.
SimpleERP has no reverse charge flag on invoices; set the rate on those lines as your CA advises and put the reverse charge wording in the invoice notes.

Sources

Honest limits

What SimpleERP does not do here

A reverse charge flag on invoices. Use the invoice notes for the wording.
Biometric attendance devices. Attendance is marked in the app or by employees on their phone.
E-invoice IRN and GST return filing.

FAQ

Questions, answered

What is the SAC code for security services?

Security services sit in SAC group 99852. Guard services are usually billed under 998525, and other security services such as patrolling under 998529. Investigation is 998521 and security consulting 998522. The usual rate is 18%. Check the exact six digits against the SAC list.

Is GST on security services under reverse charge?

When the supplier is not a body corporate, such as a proprietor or partnership, and the client is a registered business, the client usually pays the tax under reverse charge. A company agency charges GST in the normal way. There are exceptions, so confirm each client with your CA.

What GST rate applies to guard uniforms?

Since 22 September 2025, garments up to ₹2,500 per piece usually carry 5% and those above carry 18%. Most uniform shirts, trousers and shoes fall in the 5% band. Confirm the rate for each item against the current notification.

Can SimpleERP run payroll for guards as well as billing?

Yes. Guards are employees with salary components, attendance and leave, and payslips carry PF, PT and TDS. Payroll posts to the same ledger as your client invoices, so the margin per month is visible in one place.

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