Full formBusiness & Corporate
SACstands forService Accounting Code
Full Form of SAC
What is SAC?
SAC, or Service Accounting Code, is a standardized alphanumeric code used under the Goods and Services Tax (GST) regime in India to classify services for taxation purposes. Introduced as part of the GST framework in July 2017, SAC codes are the service equivalent of HSN codes for goods. Each service provided in India, from telecommunications to healthcare to legal consultancy, is assigned a specific SAC code that determines its GST rate and facilitates uniform classification across the country. Businesses must mention the correct SAC on invoices and in GST returns to ensure proper tax calculation and compliance. The code system is managed by the Central Board of Indirect Taxes and Customs (CBIC) and is based on the United Nations Central Product Classification (CPC) system. For example, SAC 998311 covers accounting and auditing services, while SAC 998521 relates to software development services. Understanding SAC is crucial for tax professionals, accountants, and business owners to avoid mismatches during audits and to claim accurate input tax credit. For competitive exams like CA, CMA, or UPSC Commerce optional, questions on GST classification often test knowledge of SAC codes. In day-to-day business practice, using the correct SAC ensures smooth GST filing and reduces the risk of notices from tax authorities.
SAC का फुल फॉर्म
सेवा लेखा कोड
Example
Our billing team ensured that the SAC 998311 was correctly applied to the audit service invoice to match the GST slab of 18%.
SAC — frequently asked questions
What is the full form of SAC?
The full form of SAC is Service Accounting Code, used under GST in India to classify services for tax purposes.
What is the difference between HSN and SAC?
HSN (Harmonized System of Nomenclature) is used for goods, while SAC (Service Accounting Code) is used for services under GST. Both are standardized codes to classify products and services for taxation.
How do I find the SAC code for a specific service?
You can find the SAC code for a specific service in the GST tariff schedule issued by the CBIC, or use online GST portal tools. Common services like restaurant (996331) or legal services (998214) have defined codes listed in the schedule.