SAC codes
SAC code for job work: 998898
Job work rates depend on the goods you work on, not only on the work. Here is the code, how the rate is decided and a sample job work line.
In short
Job work is billed under heading 9988, with SAC 998898 for processes not listed elsewhere. The GST rate depends on the sector. In SimpleERP the job work charge is a service line, and the principal's goods never enter your stock.
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 998898 at a glance
| Item | Value |
|---|---|
| 6-digit SAC | 998898: Other manufacturing services n.e.c., on goods owned by the principal |
| Metal treatment and coating | 998873, used in the powder coating example below |
| 4-digit group | 9988 |
| Chapter 99 heading | Manufacturing services on physical inputs (goods) owned by others |
| Usual GST rate | Varies by sector; textile and leather job work lower |
| Reverse charge | Forward charge for most suppliers. |
| Exemption | Some job work on agricultural produce is exempt, as notified. |
| Who typically bills it | Job workers: platers, powder coaters, machinists, dyers and other processors |
Sources: CBIC: classification of services (SAC), CBIC: GST rates and notifications. Verified .
Which SAC code goes on a job work invoice?
The usual SAC code for job work is 998898: other manufacturing services n.e.c., on goods owned by the principal. It sits in group 9988, manufacturing services on physical inputs (goods) owned by others, under chapter 99, the chapter that holds every service code in the GST classification. Group 9988 lists job work by sector, such as textiles, leather, food and metals, and 998898 holds the processes not named elsewhere. Pick the sector's own code when one fits.
What GST rate applies to job work?
There is no single job work rate. Textile, leather and several other sectors carry lower notified rates, while engineering job work has carried a higher one. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.
- Textile and leather job work carry lower rates than most engineering job work, as notified
- The September 2025 changes moved several job work entries; check before you quote
- Job work for an unregistered principal may not get the concessional rate; check
A job work invoice line in SimpleERP
Lakshmi Steel Furnitures powder coats 300 steel brackets for Annai Enterprises, which supplies the brackets, and bills ₹18,000 for the coating. The line carries SAC 998873, the code for metal treatment and coating on goods owned by others, with the rate its CA confirms for this job work, and the place of supply sets CGST and SGST.
- SAC 998873 sits on the line from the saved service, so nobody types it per invoice
- Place of supply picks CGST and SGST for a client in your state, or IGST for one in another
- The HSN/SAC summary groups every line by code, ready for the GSTR-1 HSN table
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?
Job work is under forward charge, as notified: the job worker charges GST on the processing charge. There is no [reverse charge](/glossary/reverse-charge-mechanism) entry for it. The principal's goods come and go under its own documents and are not part of your sale.
- Job work on agricultural produce is exempt in some cases, as notified; check
- Only your processing charge is taxable; the principal's goods are not sold to you or by you
- Materials you add of your own, like powder or paint, are part of your charge
FAQ
Questions, answered
Is SAC mandatory on my job work invoice?
Yes, on B2B invoices: four digits (9988) up to ₹5 crore turnover and six digits above it. For job work the six digits matter more than usual, since the sector code is what tells the principal which rate you applied.
Can I use 9988 instead of 998898?
Up to ₹5 crore turnover, 9988 meets the four-digit rule on B2B invoices. But 9988 covers every sector, and the rate differs between them, so the sector's six-digit code is the safer choice.
Does reverse charge apply to job work?
No. Job work is under forward charge, as notified, so the job worker charges GST. If you hire labour from an agency for the job, the agency charges you under 998519 on its own invoice.
What if my client is in another state?
For a registered principal, the place of supply is usually the principal's location, so an out-of-state principal pays IGST. In SimpleERP the principal's GSTIN sets the place of supply on your invoice.
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The code that classifies services for GST, as HSN codes do for goods.
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