SAC codes
SAC code for security services: 998525
Guard services carry their own six-digit code, and who pays the GST depends on whether your agency is a company. Here is the code, the rate and the reverse charge rule.
In short
Security guard services are billed under SAC 998525, usually at 18% GST. A non-corporate agency's registered clients pay it under reverse charge. SimpleERP prints the code on every line and the reverse charge wording in the notes.
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 998525 at a glance
| Item | Value |
|---|---|
| 6-digit SAC | 998525: Guard services |
| 4-digit group | 9985 |
| Chapter 99 heading | Support services |
| Usual GST rate | 18% |
| Reverse charge | Reverse charge when a supplier other than a body corporate supplies security personnel to a registered person, as notified; forward charge for a company. |
| Exemption | No common exemption for private clients; some pure services to government bodies may be exempt, as notified. |
| Who typically bills it | Security agencies holding a PSARA licence, both companies and proprietorships |
Sources: CBIC: classification of services (SAC), CBIC: GST rates and notifications. Verified .
Which SAC code goes on a security services invoice?
The usual SAC code for security services is 998525: guard services. It sits in group 9985, support services, under chapter 99, the chapter that holds every service code in the GST classification. Guards, supervisors and gunmen deployed at a client site bill under this code. Other security work, such as escort duty, sits under 998529, and the reverse charge rule covers both.
What GST rate applies to security services?
Security services are usually charged at 18% GST. Whether you or your client pays it depends on who you are and who the client is. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.
- Other security services, such as event or escort duty, go under 998529
- Investigation services sit under 998521 and security systems services under 998523
- Your GST is on the full value billed, wages and allowances included
A security services invoice line in SimpleERP
Nilgiri Guard Services Pvt Ltd, a Coimbatore company, bills a client factory for six guards in October at ₹1,50,000. Being a company it charges GST: the line carries SAC 998525 at 18%, so the invoice shows CGST ₹13,500 and SGST ₹13,500.
- SAC 998525 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?
As notified, when an agency that is not a body corporate (a proprietor, partnership or similar) supplies security personnel to a registered person, the client pays the GST under [reverse charge](/glossary/reverse-charge-mechanism). SimpleERP has no reverse charge switch, so leave GST off the line and write the reverse charge wording in the invoice notes. Check the GST portal for the current entry and its exceptions.
- A private limited or public company agency charges GST on its invoice under forward charge
- Clients registered only for TDS or under the composition scheme have been excluded from this reverse charge entry, as notified; check
- Pure services to a government body for a panchayat or municipality function may be exempt, as notified; check
FAQ
Questions, answered
Is SAC mandatory on my security services invoice?
Yes. Up to ₹5 crore turnover, 9985 is enough on B2B invoices; above ₹5 crore, print 998525. Under reverse charge you still issue a tax invoice with the code, even though no GST is charged on it.
Can I use 9985 instead of 998525?
Up to ₹5 crore turnover, 9985 meets the four-digit rule on B2B invoices. Above that, 998525 is required. Since 9985 also covers manpower supply and events, the six-digit code tells your client exactly which service they are paying for.
Does reverse charge apply to security services?
Manpower supply of helpers and housekeeping staff is under forward charge, as notified. Reverse charge is specific to security services from a non-corporate agency to a registered client. If one contract has both guards and helpers, bill them as separate lines with their own codes.
What if my client is in another state?
For a registered client, the place of supply is the client's registered location, so guards posted in Bengaluru for a Karnataka client billed from Tamil Nadu attract IGST. In SimpleERP the client's GSTIN decides the split on its own.
Related
Keep reading
GST billing for security agencies
Monthly site invoices billed by man-day with SAC 998525, the right tax split and client dues by site.
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.
Read more
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