SAC codes
SAC code for annual maintenance contracts: 998717
An AMC is a maintenance and repair service, so the code comes from the 99871 family, chosen by what you maintain.
In short
An annual maintenance contract on commercial and industrial machinery usually goes under SAC 998717 at 18%, with 998713 for computers. SimpleERP saves the AMC as a service with its code, so yearly or quarterly bills print it on every line.
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
SAC 998717 at a glance
| Item | Value |
|---|---|
| 6-digit SAC | 998717 (998713 for computers, 998719 for other equipment) |
| 4-digit group | 9987: maintenance, repair and installation (except construction) services |
| Chapter 99 heading | Maintenance and repair services of commercial and industrial machinery |
| Usual GST rate | 18% (as notified; check the GST portal) |
| Reverse charge | Forward charge for most suppliers: the AMC provider charges GST |
| Exemption | No general exemption; spares sold outside the contract are goods with their own HSN rate |
| Who typically bills it | Machine service firms, equipment dealers, lift, generator and air conditioning service companies |
Sources: CBIC: classification of services (SAC), CBIC: GST rates and notifications. Verified .
Which SAC code goes on an AMC invoice?
For factory and commercial machinery, use 998717, maintenance and repair services of commercial and industrial machinery. It sits in group 9987, maintenance, repair and installation (except construction) services, under chapter 99 (services). The siblings matter: 998712 for office machines, 998713 for computers and peripherals, 998719 for other machinery and equipment that fits no closer code.
Lakshmi Steel Furnitures pays Kongu Machine Care, a service firm in Coimbatore, Tamil Nadu, a yearly AMC for its press brakes and spot welders, billed under 998717. Lakshmi Steel itself sells AMCs on the mobile compactor storage it installs for offices.
What GST rate applies to an AMC?
AMC services are usually taxed at 18%. A ₹48,000 yearly AMC for a customer in your own state carries ₹4,320 CGST and ₹4,320 SGST; for a customer in another state, ₹8,640 IGST. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.
- A comprehensive AMC that includes spares is usually one supply of service
- Spares billed separately are goods with their own HSN code and rate
- Tax is due when you invoice, so bill the AMC when the contract period starts or as agreed
- Computers and IT support go under 998713, see IT support and maintenance
An AMC invoice line in SimpleERP
Save the AMC as a service with SAC 998717, the unit Year or Nos and the 18% rate. Put the contract period and machine details in the line description so the customer can match it to the contract.
- SAC 998717 prints on the AMC line, HSN codes on any spares lines
- Place of supply picks CGST plus SGST or IGST from the customer's state
- The HSN/SAC summary for GSTR-1 keeps services and spares apart
- Quarterly AMC bills each get their own invoice number in the April to March series
Illustration of the keyboard-first invoice editor with a focused line, live tax totals and shortcut hints.
When is reverse charge or an exemption involved?
AMC services are under forward charge, and there is no general exemption for business customers. The question that comes up more often is mixed supply: a comprehensive AMC that bundles parts with labour is usually one service, while a labour-only AMC with spares charged at actuals becomes a service line plus goods lines. Confirm the treatment of your contract type with your CA.
- Forward charge for machine and equipment AMCs
- No blanket exemption for business customers
- Comprehensive AMC: usually one service supply
- Labour-only AMC: spares billed as goods
FAQ
Questions, answered
I service CNC machines, computers and UPS units. Which SAC do I use?
Use the code for what you maintain: 998717 for the machines, 998713 for computers and peripherals, and the electrical equipment code your CA confirms for UPS units. Save each AMC type as its own service in SimpleERP so the right code prints on each line.
My comprehensive AMC includes spare parts. Do I bill the parts separately?
If the contract price covers parts and labour together, it is usually one supply of service under the AMC code. Bill the parts separately only when the contract says spares are charged extra, and then use their HSN codes and rates.
Do I charge GST on the full yearly AMC amount upfront?
GST is due on the invoice or on an advance received, whichever comes first, as per the time of supply rules. If you bill the full year at the start, the full tax is due that month. Many providers bill quarterly to match collection.
Is AMC on a customer's air conditioner the same code?
A commercial air conditioning plant is often billed under 998717 or 998719, while household appliance maintenance has its own code in the 99871 family. Check the description that fits best and confirm with your CA if the customer is a household.
Related
Keep reading
GST billing for service centres
Spare parts and service charges on one GST invoice, AMC contracts billed under SAC 9987, and payment by UPI QR at the customer's door.
Read moreGST invoice for services
A GST invoice format for services, with SAC codes and no stock columns, as a free Excel, Word and PDF download.
Read moreSAC code
The code that classifies services for GST, as HSN codes do for goods.
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