What is a SAC code?

SAC (Services and Accounting Code) codes are based on the Harmonized System of Nomenclature, a globally perceived framework for arranging and classifying all the services. This system enables the compliance of GST based on international standards. It will provide a common structure to the government for the proper collaboration of data related to sales and purchase and analyze the same. These codes are used to identify services and the GST Rates associated with these services to compute tax liability.

Understanding the SAC code digits

Each SAC code is a six digit code. The first two digts are always 99 which represent services. The first four digits represent the heading (or the broad category of the services) and finally the six-digit SAC code represents the code for the specific service under the given heading.

The following image shows the meaning of the digits in a SAC code.

SAC code headings (categories)