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SAC codes

SAC code for recruitment services: 998512

A placement fee for a hire who joins the client's rolls is permanent placement; staff who stay on your rolls are a different code.

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In short

Recruitment and permanent placement fees use SAC 998512, usually at 18% under forward charge. SimpleERP saves the placement fee as a service, so each invoice prints the code with the candidate and position in the 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 998512 at a glance

ItemValue
6-digit SAC998512 (998511 executive search, 998513 contract staffing)
4-digit group9985: support services
Chapter 99 headingPermanent placement services, other than executive search services
Usual GST rate18% (as notified; check the GST portal)
Reverse chargeForward charge for most suppliers: the recruiter charges GST
ExemptionNo general exemption; placement for an employer outside India can be a zero-rated export
Who typically bills itRecruitment agencies, placement consultants and independent recruiters
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 a recruitment services invoice?

Use 998512, permanent placement services, other than executive search services. It sits in group 9985, support services, under chapter 99 (services), in the 99851 family of employment services. Senior hiring on a retained search goes under 998511, executive search. Contract staffing, where the people stay on your payroll, is 998513, and temporary staffing is 998514.

TalentBridge Consultants in Pune, Maharashtra, hiring a production supervisor for Lakshmi Steel Furnitures in Coimbatore, bills a one-time fee of 8.33% of annual salary under 998512.

What GST rate applies to recruitment services?

Recruitment fees are usually taxed at 18%. A placement fee of ₹50,000 for a client in another state carries ₹9,000 IGST, and for a client in your state ₹4,500 CGST and ₹4,500 SGST. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.

  • Percentage-of-CTC fees and flat fees take the same code
  • A replacement hire under the guarantee period is usually not billed again
  • Retained search fees for senior roles: 998511
  • Staff on your own rolls: contract staffing or manpower supply

A recruitment services invoice line in SimpleERP

Save Placement fee as a service with SAC 998512 and the unit Nos. The rate per line is the agreed fee, and the position and joining date go in the description.

  • SAC 998512 prints on each placement line
  • Place of supply picks CGST plus SGST or IGST from the customer's state
  • Placement fees add up under 998512 in the HSN/SAC summary for GSTR-1
  • Credit notes handle a refund if a candidate leaves inside the guarantee

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

A placement fee for one production supervisor under SAC 998512.

When is reverse charge or an exemption involved?

Recruitment is under forward charge: the recruiter charges and pays GST, and the client claims input tax credit. There is no general exemption for business clients. If you place a candidate with an employer outside India and are paid in foreign exchange, the fee can be a zero-rated export when the conditions are met.

  • Forward charge for every business client in India
  • No exemption for small or unregistered clients
  • Employer abroad: zero-rated under a letter of undertaking
  • Refunds within the guarantee: issue a credit note with the tax reversed

Sources

FAQ

Questions, answered

I charge a percentage of the candidate's CTC. Is GST on the fee or the salary?

Only on your fee. The candidate's salary is between the employer and the employee. If your fee is 8.33% of a ₹6,00,000 CTC, the fee is ₹49,980 and GST applies to that amount.

My candidate left within 60 days and I refunded part of the fee. What do I do about GST?

Issue a credit note against the original invoice for the refunded amount, with the tax reversed. In SimpleERP the credit note reduces the customer's balance and the output tax in the same step, and it shows in the registers for your return.

I also deploy staff on my payroll at client sites. Same SAC?

No. Staff who stay on your rolls are contract staffing under 998513 or manpower supply, not permanent placement. Save them as separate services so each invoice line carries the right code.

Do I need the client's GSTIN on the invoice?

For a registered client, yes: it lets them claim input tax credit, and it sets the place of supply. SimpleERP validates the GSTIN when you add the customer and reads the state from its first two digits.

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