December 3, 2020

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Services Accounting Code (SAC) and GST Rates

Services Accounting Code (SAC) and GST Rates

Under the GST Act, the Government of India has introduced a new GST law, which reviews and enforces the tax rates for various goods and services in the country as a whole. A particular SAC code that can be used by service providers in invoices or bills to make their services to individuals and/or companies is defined by each service delivered.

For each company, service accounting codes help to define the GST regime. For each service, a specific SAC that can be used by the providers in invoices for the services they provide is denoted. By understanding the SAC list and relevant GST prices, they would be able to bill the precise GST in the invoices. The Central Board of Excise and Customs (CBEC) issues codes under the Goods and Services Tax (GST) system to categorize various commodities. These codes are referred to as the Facilities’ Accounting Code or SAC. For each of the facilities under the GST regime, there is a special SAC. Service providers may use these SACs for the services rendered by them in their invoices.

The following table lists the various SAC codes, as well as the relevant GST rates for them. The list of codes and usable GST prices outlined in the table below is given on the basis of data updated on 10 November 2017, following the 23rd meeting of the GST Council. In this post, we will look at what the Services Accounting Code is, the inclusion of services in the list of Services Accounting Codes, and also hear about the updated GST rates charged on different services under the Government of India’s GST regulations. Services Accounting Code (SAC) and GST Rates

List of SAC Code and GST Prices on Services

We will take a look at the SAC code list, under the authority of the Government of India, for different services that are taxable under the GST regulations provided by the GST Act. The Services Accounting Codes (SAC) generally list all of India’s taxable services. Therefore, this SAC binary format is made up of only a 6-digit numeric code. Every single service is recalled with the aid of this special SAC code system. This is also helpful, especially in order for individuals and businesses to be able to quickly provide invoices to their suppliers and/or consumers while delivering services.

Five GST rate slabs are essentially classified into services provided both to taxable persons and businesses under the GST regulations. In the slabs, the infrastructure levied on these five GST rate slabs decreased by 0 percent, 5 percent, 12 percent, 18 percent, and 28 percent respectively. This will be discussed in-depth in the later parts of this report as we begin to read more about the SAC code list and GST rates on services. It should be noted here that, for non-taxable services or services for which GST prices are not quoted, there is an 18 percent default GST rate in India. Below are the various SAC codes for the services included in the GST regulations, along with their corresponding GST rates.

Services Accounting Codes for Job Work

1. Textile, Apparel, And Leather Products (SAC code) Job Work

998821 to 998823 SAC code)

* Printing for newspapers

* Textile yarn and textile fabrics (other than man-made fibers)

* Cut and polished diamonds, precious and semi-precious stones, plain and studded gold, or other precious metal jewelry included in the HSN Chapter

* Printing books, journals, and periodicals (including Braille books)

* Processing of skins, hides, and leather

2. Job work related to the production of food, beverages, and tobacco (SAC)

998811 code to SAC code 998819)

* SAC Code 998811 Services for meat processing

* SAC Code 998812 Services for fish processing

* SAC Code 998813 Services for fruit and vegetable processing

* SAC Code 998814. Manufacturing services for vegetable and animal oil and fat

* SAC Code 998815- Processing facilities for dairy products

* SAC Code 998816-Other manufacturing services of food products

* SAC Code 998817-Prepared animal feed processing facilities

* SAC Code 998818-Services for beverage production

* SAC Code 998819-Services for tobacco production

3. Job work related to the production of wood and paper

* SAC Code 998831- Production services for wood and wood products

* SAC Code 998832- Manufacturing services for paper and paper products

4. Petroleum, chemical, and pharmaceutical product-related job work

(SAC code 998841 to SAC code 998843) Manufacturing

* SAC Code 998841-Production services for coke and refined petroleum products

* SAC Code 998842 -Services for the production of chemical products

* SAC Code 998843 -Production services for pharmaceutical products

5. Rubber, plastic, and non-metallic mineral products Job Work

(SAC code 998851 to SAC code 998853) Manufacturing

* SAC Code 998851-Production services for rubber and plastic products

* SAC Code 998852-Production facilities for plastic goods

* SAC Code 998853-Other processing services for non-metallic mineral goods

6. Employment job for facilities for basic metal production

* SAC Code 998860-Services for basic metal development

7. Employment job related to fabricated metal goods, appliances, and machinery

(SAC code 998871 to SAC code 998877) Manufacturing

* SAC Code 998871-Production of structural metal goods, tank, reservoir, and steam generator services

* SAC Code 998872-Production facilities for arms and ammunition

* SAC Code 998873- Production of other finished metal goods and metal treatment facilities

* SAC Code 998874-Production facilities for computers, electronic and optical goods

* SAC Code 998875- Packaging facilities for electrical equipment

* SAC Code 998876-Manufacturing facilities with general-purpose machinery

* SAC Code 998877-Special-purpose distribution facilities for machinery

9. Job work relating to the production of other products (SAC code 998891 to SAC code 998898)

* SAC Code 998891-Services for furniture production

* SAC Code 998892 Services for the production of jewelry

* SAC Code 998893-Services for imitation jewelry production

* SAC Code 998894- Production facilities for musical instruments

* SAC Code 998895- Packaging facilities for sporting products

* SAC Code 998896-Production facilities for games and toys

* SAC Code 998897-Medical and dental tools and manufacturing facilities supply

* SAC Code 998898-Other facilities for the development