SAC (Services Accounting Code) is a 6-digit code issued by CBIC under GST to classify services rendered in India. Every service on a tax invoice carries an SAC code that determines the applicable GST rate.
Why It Matters
Manufacturers do not only sell goods. They also invoice for job work, transportation, installation, AMCs, and repair services, all of which need SAC codes. Wrong SAC means wrong GST rate and GSTR-1 mismatches. Job work services on other peoples goods sit under SAC 9988 at 12 percent, while transport sits under 9965 or 9967.
Example with Indian Context
A CNC machining shop in Rajkot invoices a customer for machining services on customer-supplied castings. The service goes under SAC 998873 (treatment or processing of other metals) at 12 percent GST. Separately, when the shop charges freight for delivery, it uses SAC 996511 (road transport of goods) at 5 percent GST. Two different SACs on one transaction relationship.
Related Terms
How ERPDrive Handles It
ERPDrive item and service masters store SAC codes alongside HSN. Service invoices and job work bills pick the right SAC automatically. The GSTR-1 report groups by SAC for services, ready to upload.
See It in Your Factory
ERPDrive handles SAC-based service billing as a first-class workflow alongside BOM, MRP, quality, and GST. Book a 30-minute demo.
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