The SAC code is the number that tells GST what service you sold — it is the services version of the HSN code you already use for goods. If you run a repair counter, a tailoring shop, a salon or any shop that also charges for a service, you put a SAC code on the service line of the bill. This guide explains what a SAC code for services on a GST invoice is, how many digits your shop needs, the common codes for small businesses, and a worked example that shows HSN and SAC together on one bill.
What is a SAC code?
SAC stands for Services Accounting Code. It classifies a service the way an HSN code
classifies goods. Under GST, every service falls under Chapter 99, so a SAC code always
starts with 99, followed by four more digits that narrow down the exact service
(see the rate and code notes on cbic.gov.in).
Read the six digits from left to right:
- 99 — it is a service (Chapter 99).
- next 2 digits — the broad group (the “heading”).
- last 2 digits — the specific service within that group.
So 998714 reads as: a service (99), under maintenance-and-repair (87), for a particular
kind of repair (14). For most small shops you will only ever need the first four digits —
more on that next.
How many SAC digits do you need on a GST invoice?
You do not always have to print the full six digits. The number required depends on your aggregate turnover in the previous financial year (rule brought in from 1 April 2021 under Notification 78/2020 – Central Tax):
| Turnover (previous FY) | SAC digits on the bill |
|---|---|
| Up to ₹5 crore | 4 digits on B2B invoices; optional for B2C (walk-in) sales |
| More than ₹5 crore | 6 digits on all invoices |
Almost every kirana, repair or tailoring shop sits comfortably in the first row, so a
4-digit heading like 9987 is enough on the bill. Rules and thresholds change, so
confirm the current position on gst.gov.in or with your CA
before you set it.
Common SAC codes for small service businesses
These are the broad 4-digit headings a small Indian shop runs into most often. Pick the exact 6-digit code and confirm its rate on cbic.gov.in — GST 2.0 revised many service rates from 22 September 2025, so do not rely on an old figure.
| Service | SAC heading |
|---|---|
| Maintenance, repair & installation (electronics, appliances, vehicles) | 9987 |
| Job work — tailoring, stitching, work on a customer’s own goods | 9988 |
| Restaurant, catering, food & beverage service | 9963 |
| Hairdressing, salon & beauty | 9997 (99972) |
| Construction & related work | 9954 |
| Other support / miscellaneous services | 9985 / 9997 |
Note that a SAC only says what the service is; it does not by itself decide the tax rate. The rate is set by the GST rate schedule for that service, which is why the codes above are shown without a rate — always look up the current one.
HSN and SAC on the same bill: a worked example
Many small shops sell a part and charge for fitting it. Both go on one invoice — the goods line carries an HSN code, the service line carries a SAC code.
Meena runs an appliance repair shop in Coimbatore, Tamil Nadu. A customer brings in a mixer-grinder. Meena replaces a capacitor (a spare part) and charges a repair labour fee. The customer is also in Tamil Nadu, so this is an intra-state sale — the GST splits into CGST + SGST at half each. Assume both lines are taxed at 18% for this illustration (confirm your actual rates on cbic.gov.in):
| Line | Code | Type | Taxable value |
|---|---|---|---|
| Capacitor (spare part) | HSN 8532 | Goods | ₹200 |
| Repair labour | SAC 9987 | Service | ₹800 |
- Total taxable value = ₹200 + ₹800 = ₹1,000.
- Intra-state, so 18% splits into CGST 9% = ₹90 and SGST 9% = ₹90.
- Invoice total = ₹1,000 + ₹90 + ₹90 = ₹1,180.
If the same repair were billed to a customer in Kerala (inter-state), you would charge a single IGST 18% = ₹180 instead of the CGST/SGST split — the total is still ₹1,180, shown as one IGST line. The buyer’s place of supply is what decides which one applies.
Doing this without looking up codes every time
The fiddly part of a mixed bill is remembering the right HSN or SAC and the right rate for every line, then splitting the tax correctly. That is exactly what billing software is for.
Yojika is offline-first GST billing software for Indian small shops. You save each item or service once — with its HSN or SAC code and rate — and every bill reuses it, so the code and the CGST/SGST or IGST split are right without a second thought. You can print to A4, A5 or a thermal receipt printer, in any of the 22 official Indian languages, and your business data stays on your own PC.
- See what is included on the features page.
- Check simple, transparent pricing.
- Or download Yojika and try it free for 14 days.
New to invoice codes? Start with the goods side in our guide to the HSN code for grocery items, or see the full GST invoice format for small shops.
This article is general information, not tax advice. GST rates, codes and thresholds change — confirm the current position on gst.gov.in or cbic.gov.in, or with your CA.