What is a SAC code?
A SAC code is the classification used to identify services under GST, in the same way an HSN code identifies goods. SAC codes are six digits, begin with 99, and determine the rate and the place-of-supply rules that apply to a service. A tax invoice for a service carries a SAC code rather than an HSN code.
How it differs from HSN
HSN classifies goods and comes from an international customs standard; SAC classifies services and is specific to the Indian service tax lineage. Both appear on invoices, but never on the same line — a line is either goods or a service.
Why services are different
Place of supply for services follows its own rules, which frequently turn on where the recipient is located rather than where goods moved. That is why a service business cannot simply treat its work as goods with a different code.
Export of services
A service supplied to a recipient outside India can qualify as an export, and therefore as a zero-rated supply, but only if a specific set of conditions is met. The SAC code does not by itself decide that.
Related questions
Do I need a SAC code on every service invoice?
Where an HSN or SAC code is required for your turnover band, yes — services carry a SAC. The digit requirements follow the same turnover-based rules as HSN.
Can a single invoice carry both HSN and SAC codes?
Yes, on different lines. A supply of goods with an installation service is common, and each line carries the code appropriate to what it is.
Do all SAC codes start with 99?
Yes — the 99 prefix is what distinguishes a services code from a goods classification at a glance.
More definitions
Keep the code with the service
tBiz holds the SAC and rate against each service, so it is applied consistently.