SAC codes
SAC code for manpower supply: 998519
Labour supply agencies bill helpers, loaders and housekeeping staff under one code. This page gives the code, the rate and a worked invoice line.
In short
Manpower supply is billed under SAC 998519, usually at 18% GST on the full value including wages. In SimpleERP you save the service with its code and rate once, and every monthly invoice applies them.
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 998519 at a glance
| Item | Value |
|---|---|
| 6-digit SAC | 998519: Other employment and labour supply services n.e.c |
| 4-digit group | 9985 |
| Chapter 99 heading | Support services |
| Usual GST rate | 18% on the full invoice value, wages included |
| Reverse charge | Forward charge for most suppliers. |
| Exemption | Pure services to a government body for a panchayat or municipality function may be exempt, as notified. |
| Who typically bills it | Manpower agencies, staffing firms, housekeeping and labour contractors |
Sources: CBIC: classification of services (SAC), CBIC: GST rates and notifications. Verified .
Which SAC code goes on a manpower supply invoice?
The usual SAC code for manpower supply is 998519: other employment and labour supply services n.e.c. It sits in group 9985, support services, under chapter 99, the chapter that holds every service code in the GST classification. Agencies that place their own staff at a client's site and bill per head or per man-day usually use this code. Contract, temporary and long-term (pay rolling) staffing have their own codes, 998513 to 998515, and permanent placement uses 998512, all in the same group.
What GST rate applies to manpower supply?
Manpower supply is usually charged at 18% GST, and the tax is on the whole invoice: wages, PF and ESI contributions and your service charge together. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.
- Contract staffing usually goes under 998513 and permanent placement fees under 998512
- Security guards are billed under 998525, not 998519
- Wages are not left out as a reimbursement; an agency is rarely a pure agent for its own staff's pay
A manpower supply invoice line in SimpleERP
Kaveri Facility Services, a Coimbatore agency, bills a client factory for 12 helpers for October at ₹2,40,000. The line carries SAC 998519 at 18%, so the invoice shows CGST ₹21,600 and SGST ₹21,600, a total of ₹2,83,200.
- SAC 998519 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?
Manpower supply by an agency to a business is under forward charge, as notified: the agency charges GST on its invoice. The [reverse charge](/glossary/reverse-charge-mechanism) entry for security services does not extend to helpers or housekeeping staff. Check the GST portal for your contracts.
- Pure services to a government or local authority for a panchayat or municipality function may be exempt, as notified; check
- Supply of security personnel by a non-corporate agency is under reverse charge, as notified, which is a different code
- Your own employees' salaries are not a supply; only the invoice to the client is taxed
FAQ
Questions, answered
Is SAC mandatory on my manpower supply invoice?
Yes, on B2B invoices. Up to ₹5 crore turnover, the four digits 9985 are enough; above ₹5 crore, print 998519 on every invoice. Clients' accounts teams often ask for the six-digit code to match the contract, so most agencies print it in full.
Can I use 9985 instead of 998519?
Up to ₹5 crore turnover, 9985 satisfies the four-digit rule on B2B invoices. Above that, the six-digit 998519 is required. Heading 9985 also covers security, office support and events, so the full code avoids confusion in your client's books.
Does reverse charge apply to manpower supply?
Not for manpower supply as notified: the agency charges 18% GST on its invoice under forward charge. Reverse charge applies to security services supplied by a non-corporate agency to a registered client, so check which service your contract describes.
What if my client is in another state?
For a registered client, the place of supply is the client's registered location, so a client in Hosur billed from Coimbatore pays IGST. In SimpleERP the place of supply comes from the client's GSTIN and the invoice picks IGST or CGST and SGST.
Related
Keep reading
GST billing for manpower agencies
Monthly manpower supply invoices from man-days, rate and service charge, with SAC codes and the right GST split.
Read moreGST invoice for manpower supply
A free tax invoice format for manpower and labour supply, with man-days, the agency service charge and GST on the full bill.
Read moreSAC code
The code that classifies services for GST, as HSN codes do for goods.
Read more
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