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SAC codes

SAC code for tour operators: 998555

A package that bundles travel, stay and sightseeing for one price is a tour operator service, with a rate choice that turns on input tax credit.

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In short

Tour operators selling packages use SAC 998555, taxed as notified at 5% without input tax credit or 18% with credit. SimpleERP lets you save the package at the rate you have chosen and prints the code on every 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 998555 at a glance

ItemValue
6-digit SAC998555
4-digit group9985: support services
Chapter 99 headingTour operator services
Usual GST rate5% without input tax credit, or 18% with credit (as notified; check the GST portal)
Reverse chargeForward charge for most suppliers: the tour operator charges GST
ExemptionNo exemption for domestic packages; tours for foreign travellers outside India have their own place of supply rules
Who typically bills itTour operators, pilgrimage tour organisers and holiday package companies
Codes from the CBIC services classification; rates and conditions 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 tour operator invoice?

Use 998555, tour operator services. It sits in group 9985, support services, under chapter 99 (services), in the 99855 family of travel arrangement services. It covers planning, arranging and selling packages that combine transport, accommodation, meals and sightseeing for one price. Booking a ticket or a hotel room for a fee is a reservation service instead, on the travel agency page.

Temple Trails Holidays in Madurai, Tamil Nadu, sells a four-day Rameswaram and Kanyakumari package to the staff welfare club of Lakshmi Steel Furnitures and bills the whole package under 998555.

What GST rate applies to tour operator services?

As notified, a tour operator can charge 5% without taking input tax credit on its costs, or 18% with credit. The 5% route needs the invoice to say that the price includes accommodation and transport. On a ₹1,20,000 package at 5%, the GST is ₹6,000; at 18% it is ₹21,600, before the credit on hotel and transport bills. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.

  • 5% route: no credit on hotel, transport and other inputs, except as notified
  • 18% route: full credit on eligible costs
  • Invoice wording matters on the 5% route: package inclusive of stay and travel
  • Reservation fees outside a package: 998551 or 998552 at 18%

A tour operator invoice line in SimpleERP

Save the package as a service with SAC 998555 at the rate you have chosen, and add a note to the invoice that the price includes accommodation and transport. Group bookings can show the number of travellers as the quantity.

  • SAC 998555 prints on the package line
  • Place of supply picks CGST plus SGST or IGST from the customer's state
  • The HSN/SAC summary for GSTR-1 shows packages under 998555 at your rate
  • Advances from travellers post as receipts against the customer

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

A four-day package for 30 travellers under SAC 998555.

When is reverse charge or an exemption involved?

Tour operator services are under forward charge. There is no exemption for domestic packages. The rate choice is the real decision: 5% suits operators whose costs carry little recoverable GST, while 18% suits those buying mostly from registered hotels and transporters. Tours for foreign travellers to places outside India have their own place of supply rules, so ask your CA.

  • Forward charge on the package price
  • No exemption for domestic packages
  • Pick one route per supply and keep invoices consistent
  • Foreign tours: check the place of supply before billing

Sources

FAQ

Questions, answered

Should I bill my packages at 5% or 18%?

As notified, 5% means you give up input tax credit on most costs, while 18% lets you claim credit on hotels, buses and guides. Work out which leaves your customer with the lower price after your costs, and confirm the conditions with your CA before you switch.

What must my invoice say to use the 5% rate?

The invoice should indicate that the package price includes the charges for accommodation and transportation. In SimpleERP add this as a note on the invoice so it prints every time, and keep the package description specific.

I also book flight tickets for customers. Same code?

No. A ticket booked for a fee is a reservation service under 998551 at the usual rate. Only the bundled package you sell as an operator goes under 998555. Save each as its own service.

A customer pays in two instalments. When do I charge GST?

GST on services is due on the earlier of the invoice or the payment. An advance triggers tax on the amount received, and the final invoice adjusts it. Your accountant can match the advance in SimpleERP against the final invoice.

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