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SAC codes

SAC code for engineering consultancy: 998333

Plant layouts, machine foundations, process design and project drawings for factories are billed under 998333, with nearby codes for buildings and power projects.

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In short

Engineering consultancy for factories and industrial projects uses SAC 998333, usually at 18% under forward charge. In SimpleERP you save the service once with its SAC code and rate, and every invoice line carries both.

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 998333 at a glance

ItemValue
6-digit SAC998333
4-digit group9983: other professional, technical and business services
Chapter 99 headingEngineering services for industrial and manufacturing projects
Usual GST rate18% (as notified; check the GST portal)
Reverse chargeForward charge for most suppliers: the consultant charges GST on the invoice
ExemptionNo general exemption for business clients; a supply to a client abroad can be a zero-rated export
Who typically bills itConsulting engineers, plant design firms, process and structural consultants for factories
Codes from the CBIC services classification; rates as notified on the verified date. 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: GST rates and notifications. Verified .

Which SAC code goes on an engineering consultancy invoice?

Use 998333, engineering services for industrial and manufacturing projects. It sits in group 9983, other professional, technical and business services, under chapter 99 (services). The code describes the project the engineering is for, not your degree, so pick the sibling that matches the job: 998331 for engineering advisory work on its own, 998332 for building projects, 998335 for power projects and 998339 for project management of construction.

A firm like Kovai Plant Engineers in Coimbatore, Tamil Nadu, drawing the layout for a new powder coating line at Lakshmi Steel Furnitures, bills that work under 998333.

What GST rate applies to engineering consultancy?

Engineering services under 998333 are usually taxed at 18%, split as 9% CGST and 9% SGST inside your state or 18% IGST across states. A ₹1,20,000 plant layout fee therefore carries ₹21,600 of GST. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.

  • Advisory work with no project attached can go under 998331 at the same usual rate
  • Engineering for a building project goes under 998332, not 998333
  • Design plus supervision of a works contract may be part of the contract, so read the contract scope
  • Work for a client outside India can be a zero-rated export under a letter of undertaking

An engineering consultancy invoice line in SimpleERP

Save the service as a product with SAC 998333, a unit such as Nos or Hours and the 18% rate. Bill it on a normal tax invoice; SimpleERP reads the customer's GSTIN, sets the place of supply and works out the tax split.

  • SAC 998333 prints on the invoice line next to the description
  • Place of supply picks CGST plus SGST or IGST from the customer's state
  • The line is grouped under 998333 in the HSN/SAC summary for GSTR-1
  • Drawings, site visits and travel can be separate lines with their own codes

Illustration of the keyboard-first invoice editor with a focused line, live tax totals and shortcut hints.

A plant layout fee billed under SAC 998333 with CGST and SGST.

When is reverse charge or an exemption involved?

Engineering consultancy is not on the reverse charge list, so the consultant charges and pays the GST. The usual exemption question is export: when the client is outside India and pays in foreign exchange, the service can be zero-rated. SimpleERP has no reverse charge flag on bills, so any RCM tax on your own purchases is posted by your accountant with a journal entry.

  • Forward charge: GST on the consultant's invoice
  • No blanket exemption for industrial clients
  • Export of service: zero-rated when the conditions are met, see zero-rated supply
  • Government project work may have its own entries, so check the notification for that client

Sources

FAQ

Questions, answered

I do both advisory reports and detailed design for factories. Do I need two SAC codes?

You can. An advisory report on its own fits 998331, while design for a specific industrial project fits 998333. Most consultants save both as separate services so the right code prints on each line, and the HSN/SAC summary then shows the two codes apart for GSTR-1.

Is engineering consultancy taxed at 18% for every client?

For business clients in India the usual rate is 18%, with CGST and SGST or IGST by place of supply. A client outside India can make it a zero-rated export, and some government work has separate entries. Confirm the rate for your contract with your CA before you bill.

My client is in another state. Which tax do I charge?

Inter-state means IGST at 18% instead of CGST and SGST. Engineering work tied to a specific site usually has its place of supply where the site is, so check that a plant in another state is treated that way. SimpleERP sets the place of supply from the customer's GSTIN or address and picks IGST when it differs from your state.

Can I show the site visit charges on the same invoice?

Yes. Add site visits as a separate line, under the same SAC or another one if your CA advises, and travel reimbursements as their own line. Each line keeps its code, and the invoice total, tax split and HSN/SAC summary update together.

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