5 simple steps to find your SAC code

The Goods and Service Tax has brought all the tax systems under one roof. Paying taxes has become much easier for the taxpayers. CBIC has also implemented HSN and SAC code services to distinguish between goods, services, and tax rates that will help individuals and businesses in the tax paying process. 

What is the SAC code list?

After the initiation of Goods and Service Tax from 1st July 2017, a system was launched to codify the existing and new services provided by the sellers and service providers in the country. Therefore, the SAC and HSN code systems were introduced. SAC codes are used for service-oriented businesses and HSN are used for goods and products. The term SAC stands for Servicing Accounting Code. It organises all the services under the Goods and Service Tax law. Therefore, whenever someone is filing GST, they have to disclose the SAC codes too, it is mandatory for every business provider. 

To bring uniformity among all the taxpayers, CBIC (Central Board of Indirect Taxes and Customs) implemented the system of SAC code list. For better measurement of tax, easing the process of taxpayers and for better taxation, SAC codes were implemented. With the help of the SAC code list, the government can also track the existing list of services and their providers. Also, it is very easy to find GST rates using SAC codes, this is one of the major plus points of the SAC code list system.

SAC code list finder

You need to consider some points before searching SAC code from the list of services provided by CBIC. These points are:

• SAC codes are of a total of 6 digits.
• For every sector service codes are different, but every service code starts with ‘99’.
• The kind of service provided by the purveyor is symbolised by the middle two numbers.
• The last two numbers signify the detailed nature of the service.

As an example, if we take the code ‘995412’ from the SAC code list, the first two digits ‘99’ signify that it is a SAC code. The middle two digits ‘54’ signifies the nature of service and in this case, it is the construction service. The last 2 numbers ‘12’ signifies double dwelling. For each kind of service, there are distinct and fixed GST rates. With this, taxpayers can get a clear grasp of how much taxes the taxpayers need to pay.

5 simple steps to find your SAC code

Follow these simple steps to find out your SAC code from the SAC code list:

• First, visit the official homepage of the GST portal. Use your valid credentials to log in to your account. Click on Services, then look for User services. In the User Services section, select Service Classification Code.
• Now click on the Service Classification Code (SAC) checkbox and then select the tax type from the website’s tax types.
• In the next step, you need to enter the service classification code (SAC) to find out the rate and amount of tax you need to pay. You can find this under the Service name by code section.
• The next step is to provide the timeline. You need to select the date, time and year to find out the effective period.
• After successfully contributing all the details, you can now click on the search button to find out the SAC code and other particulars you are looking for.

If you want to develop your business, you can use an e-invoicing software and get rid of issues like finding SAC codes for your services, rate of tax, amount of tax that needs to be submitted, etc. With a range of features, e-invoicing software can also detect and generate SAC codes without any hassle. It helps you operate and manage your business smoothly.