SAC (Service Accounting Codes): 9954 and Job Work Codes

Introduction
SAC Code finder
SAC Code 9954
SAC Code for Job-work

Introduction

All goods and services transacted in India under GST are classified under the HSN code system or SAC Code system. Where services are classified under SAC Code and goods are classified under HSN Code.

Services Accounting Code also called as SAC Code is a classification system for services developed by the Service Tax Department of India. Using GST SAC code, the GST rates for services are fixed in five slabs namely 0%, 5%, 12%, 18% and 28%.

Note: If a service is not exempted from GST or if the GST rates are not provided, then the default GST rate for services of 18% would be applicable.

What is SAC?

SAC stands for Service Accounting Code. It is a system used to classify all the different types of services rendered in India under GST. These codes are used to:

Identify the type of service you are offering
Apply the correct GST rate on that service

This coding system is useful for businesses, tax professionals, and the GST department to easily understand what service is being provided and how it should be taxed.

SAC Code finder

How do I carry out a SAC Code Search?
- You will need a SAC Code finder to find the SAC code for the given service.
- But there are also other ways to decode SAC code for a given product such as by visiting Central Board or excise and customs department website and other third-party apps on play store and iOS platform.
Why do I need a SAC Code finder?
- Indian Taxation System has categorized roughly over 120 services for levy of GST under 5 broad categories or tax-slabs.
- These are 0%, 5%, 12%, 18% and 28%.

So it becomes important to know in which of these categories your services has been classified.

So the SAC Code finder here is used to find the SAC Code for services for invoicing purposes.

SAC Code 9954

SAC code 9954 is used to identify services related to the construction of buildings and infrastructure. This includes all types of residential, commercial, and industrial constructions and even repair and maintenance of buildings.

What does the SAC code 9954 indicate?

Every SAC code is 6 digits long. These digits help define the category and type of service clearly. For example:

The first two digits are always 99, which means it’s a service.
The next two digits show the main type of service.
The last two digits give more details about the specific nature of the service.

Types of services covered under SAC code 9954

Services are classified as per the Services Accounting Code (SAC). The SAC is strictly numeric and is 6 digits. The first two digits are same for all services i.e. 99, the next two digits represent the major nature of service and the last two digit represent detailed nature of service.

To understand this better, let us take an example of SAC code 9954.

SAC code 9954: Breaking up this SAC code reveal us the nature of service or the classification of service as under

First two digits

“99”

Common for all Services

Second two digits

“54”

Major nature of service. And “54” classifies construction services.

Last two digits

SAC Code 995411 -

Construction services of single dwelling or multi dwelling or multi-storied residential.

Construction services of building

SAC Code 995412 -

Construction services of other residential buildings such as old age homes, homeless shelters, hostels etc

SAC Code 995413 -

Construction services of industrial buildings such as buildings used for production activities (used for assembly line activities), workshops, storage buildings and other similar industrial buildings.

SAC Code 995414 -

Construction services of commercial buildings such as office buildings, exhibition & marriage halls, malls, hotels, restaurants, airports, rail or road terminals, parking garages, petrol and service stations, theatres and other similar buildings.

SAC Code 995415 -

Construction services of other non-residential buildings such as educational institutions, hospitals, clinics including veterinary clinics, religious establishments, courts, prisons, museums and other similar buildings

SAC Code 995416 -

Construction Services of other buildings n.e.c

SAC Code 995419 -

Services involving Repair, alterations, additions, replacements, renovation, maintenance or remodelling of the buildings covered above.

Construction services of Civil engineering works

SAC Code 995421 -

General construction services of highways, streets, roads, railways and airfield runways, bridges and tunnels

SAC Code 995422 -

General construction services of harbours, waterways, dams, water mains and lines, irrigation and other waterworks

SAC Code 995423 -

General construction services of long-distance underground/overland/submarine pipelines, communication and electric power lines (cables); pumping stations and related works; transformer stations and related works.

SAC Code 995424 -

General construction services of local water & sewage pipelines, electricity and communication cables & related works

SAC Code 995425 -

General construction services of mines and industrial plants

SAC Code 995426 -

General Construction services of Power Plants and its related infrastructure

SAC Code 995427 -

General construction services of outdoor sport and recreation facilities

SAC Code 995428 -

General construction services of other civil engineering works n.e.c.

SAC Code 995429 -

Services involving Repair, alterations, additions, replacements, renovation, maintenance or remodelling of the constructions covered above.

Site Preparation Services

Code 995431 -

Demolition services

Code 995432 -

Site formation and clearance services including preparation services to make sites ready for subsequent construction work, test drilling & boring & core extraction, digging of trenches.

Code 995433 -

Excavating and earthmoving services

Code 995434 -

Water well drilling services and septic system installation services.

Code 995435 -

Other site preparation services n.e.c

Code 995439 -

Services involving Repair, alterations, additions, replacements, maintenance of the constructions covered above.

Assembly and erection of prefabricated constructions

HSN/SAC Code 995441 -

Installation, assembly and erection services of prefabricated buildings

HSN/SAC Code 995442 -

Installation, assembly and erection services of other prefabricated structures and constructions

HSN/SAC Code 995443 -

Installation services of all types of street furniture (e.g., bus shelters, benches, telephone booths, public toilets, etc.)

HSN/SAC Code 995444 -

Other assembly and erection services n.e.c.

HSN/SAC Code 995449 -

Services involving Repair, alterations, additions, replacements, maintenance of the constructions covered above.

Special trade construction services

Code 995451 -

Pile driving and foundation services

Code 995452 -

Building framing & Roof Framing services

Code 995453 -

Roofing and waterproofing services

Code 995454 -

Concrete services

Code 995455 -

Structural steel erection services

Code 995456 -

Masonry services

Code 995457 -

Scaffolding services

Code 995458 -

Other special trade construction services n.e.c.

Code 995459 -

Services involving Repair, alterations, additions, replacements, maintenance of the constructions covered above.

Installation Services

HSN/SAC Code 995461 -

Electrical installation services including Electrical wiring & fitting services, fire alarm installation services, burglar alarm system installation services.

HSN/SAC Code 995462 -

Water plumbing and drain laying services

HSN/SAC Code 995463 -

Heating, ventilation and air conditioning equipment installation services.

HSN/SAC Code 995464 -

Gas fitting installation services

HSN/SAC Code 995465 -

Insulation services

HSN/SAC Code 995466 -

Lift and escalator installation services

HSN/SAC Code 995468 -

Other installation services n.e.c.

HSN/SAC Code 995469 -

Services involving Repair, alterations, additions, replacements, maintenance of the installations covered above.

Building completion Services

SAC Code 995471 -

Glazing services

SAC Code 995472 -

Plastering services

SAC Code 995473 -

Painting services

SAC Code 995474 -

Floor and wall tiling services

SAC Code 995475 -

Other floor laying, wall covering and wall papering services

SAC Code 995476 -

Joinery and carpentry services

SAC Code 995477 -

Fencing and railing services

SAC Code 995478 -

Other building completion and finishing services n.e.c.

SAC Code 995479 -

Services involving Repair, alterations, additions, replacements, maintenance of the completion/finishing works covered above.

Why is SAC code 9954 important?

Using the correct SAC code is very important for:

Issuing GST-compliant invoices
Charging the correct GST rate based on the type of construction service
Avoiding mistakes in GST returns
Reducing chances of tax disputes or penalties
Maintaining proper records for audit or assessment

SAC codes for job work

Understanding job work under GST is essential because it helps businesses streamline their processes, reduce compliance burdens, and ensure the smooth movement of goods between different parties.

What is job work under GST?

Job work refers to when one person (called the principal) sends goods to another person (job worker) for further processing, treatment, or finishing. This process is done without transferring the ownership of the goods. The job worker performs the work and returns the goods to the principal after completing the task.

For example, if a garment manufacturer sends fabric to a tailor to get it stitched, that stitching service is a job work.

Why is job work important in GST?

Under the GST law, job work is treated as a service. So, it needs to be classified properly using SAC codes. This helps in applying the correct GST rate and filing returns correctly.

SAC code for job work

The main SAC Code used for job work is 9988. In this code:

The first two digits (99) show that it is a service.
The next two digits (88) represent the job work category.

This SAC code covers different types of job work services across industries like textiles, food, chemicals, metal, electronics, transport equipment, and more.

Here are some examples of SAC Codes under the 9988 series:

SAC Code for Job Work	The SAC code for Job work is 9988. Where “88” represents the major nature of service “Job Work”
Services classified under Job Work (Detailed Nature)	*Related to textile, apparel and Leather product : [SAC code 998821 to SAC Code 998823]* Printing of newspapers; (b) Textile yarns (other than of man-made fibres) and textile fabrics; (c) Cut and polished diamonds; precious and semi-precious stones; or plain and studded jewellery of gold and other precious metals, falling under Chapter of HSN; (d) Printing of books (including Braille books), journals and periodicals; (e) Processing of hides, skins and leather.
	*Related to Food, beverage and tobacco manufacturing : [SAC Code 998811 to 998819] :* Meat processing services SAC Code 998812 – Fish processing services SAC Code 998813 – Fruit and vegetables processing services SAC Code 998814 – Vegetable and animal oil and fat manufacturing services SAC Code 998815 – Dairy product manufacturing services SAC Code 998816 – Other food product manufacturing services SAC Code 998817 – Prepared animal feeds manufacturing services SAC Code 998818 – Beverage manufacturing services SAC Code 998819 – Tobacco manufacturing services
	*Related to Wood and Paper Manufacturing :* SAC Code 998831 – Wood and wood product manufacturing services SAC Code 998832 – Paper and paper product manufacturing services
	*Related to Petroleum, Chemical and Pharmaceutical Product Manufacturing [SAC Code 998841 to 998843]* SAC Code 998841 – Coke and refined petroleum product manufacturing services SAC Code 998842 – Chemical product manufacturing services SAC Code 998843 – Pharmaceutical product manufacturing services
	*Related to Rubber, Plastic and Non-metallic Mineral Product Manufacturing [SAC Code 998851 to 998853]* SAC Code 998851 – Rubber and plastic product manufacturing services SAC Code 998852 – Plastic product manufacturing services SAC Code 998853 – Other non-metallic mineral product manufacturing services
	*Job Work for Basic Metal Manufacturing Services :* SAC Code 998860 – Basic metal manufacturing services
	*Job work related Fabricated Metal Product, Machinery and Equipment Manufacturing : [SAC Code 998871 to 998877]* SAC Code 998871 – Structural metal product, tank, reservoir and steam generator manufacturing services SAC Code 998872 – Weapon and ammunition manufacturing services SAC Code 998873 – Other fabricated metal product manufacturing and metal treatment services SAC Code 998874 – Computer, electronic and optical product manufacturing services SAC Code 998875 – Electrical equipment manufacturing services SAC Code 998876 – General-purpose machinery manufacturing services n.e.c. SAC Code 998877 – Special-purpose machinery manufacturing services
	*Job Work for Transport Equipment Manufacturing :* SAC Code 998881 – Motor vehicle and trailer manufacturing services SAC Code 998882 – Other transport equipment manufacturing services
	*Job Work related to Other Products Manufacturing : [998891 to 998898]* SAC Code 998891 – Furniture manufacturing services SAC Code 998892 – Jewellery manufacturing services SAC Code 998893 – Imitation jewellery manufacturing services SAC Code 998894 – Musical instrument manufacturing services SAC Code 998895 – Sports goods manufacturing services SAC Code 998896 – Game and toy manufacturing services SAC Code 998897 – Medical and dental instrument and supply manufacturing services SAC Code 998898 – Other manufacturing services

Benefits of SAC codes in GST compliance

Service Accounting Codes are important for businesses that provide services. They offer several benefits, including the following:

Accurate GST filing: SAC codes help businesses correctly classify the services they offer, ensuring that GST returns are filed with the right tax rates and information. This helps avoid mistakes when submitting returns.
Avoid penalties and notices: If businesses use the wrong codes, they may end up paying incorrect taxes, which could lead to penalties or notices from tax authorities. By using the correct SAC codes, companies reduce the risk of mistakes and costly fines.
Proper classification of services: Every service provided by a business needs to be categorised under a specific SAC code. This makes it easy to track and manage different services offered, ensuring they are properly listed on invoices and records.
Time-saving during audits: When tax authorities conduct audits or assessments, having accurate records with the right SAC codes makes the process faster and smoother. It helps auditors quickly understand your service categories, reducing the chances of delays or issues.

How to use SAC codes in TallyPrime?

TallyPrime, a popular accounting software, simplifies GST compliance by allowing you to set and manage SAC for your services. Here's how you can configure SAC codes in TallyPrime:

Enable GST features:
- Go to Gateway of Tally > F11: Features > Statutory & Taxation.
- Set ‘Enable Goods and Services Tax (GST)?’ to Yes.
- Ensure ‘Set/alter GST details?’ is set to Yes.
Assign SAC codes to service ledgers:
- Go to Accounts Info. > Ledgers > Create (or Alter if modifying an existing ledger).
- Enter the service ledger name (e.g., "Consulting Services").
- Under the GST Details section, set ‘Set/alter GST Details?’ to Yes.
- Press Alt+W to open the Tax Rate History screen.
- Enter the applicable SAC Code (e.g., 998312 for consulting services) and the corresponding GST Rate.
- Press Ctrl+A to save.
Automatic SAC code assignment in invoices:
- When creating a sales invoice, select the relevant service ledger (e.g., "Consulting Services").
- TallyPrime will automatically apply the assigned SAC code and GST rate to the invoice.

SAC codes list

Here’s a sample list of commonly used SAC codes:

SAC Code	Description
995415	Construction of educational institutions, hospitals
995439	Repairs and renovations of buildings
998312	Management consultancy services
998361	Legal services
998596	IT consulting services
999122	Real estate services related to buildings
998719	Advertising services
998522	Transport of goods by road
998593	Architectural services
998731	Financial consulting services
998742	Recruitment and placement services
998743	Travel agency services
998712	Software development and related services
998911	Repair and maintenance of machinery
998914	Cleaning services
999115	Services by way of renting of residential property
998633	Event management services
999122	Legal and accounting services
998652	Event catering services
995412	Construction of roads and bridges

Conclusion

Using the correct Service Accounting Code is very important for businesses that provide services under GST. It helps ensure that taxes are calculated correctly, invoices are prepared properly, and your business stays fully compliant with GST rules. By setting up SAC codes the right way, you can avoid mistakes, save time, and make the entire tax process easier. Software like TallyPrime makes this even simpler by allowing you to easily add, manage, and apply SAC codes while creating invoices and reports. This means fewer mistakes and smoother GST filing for your business.