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GST & compliance

How to find the right SAC code for your freelance service

5 min read

A SAC code is a classification, not a calculation. There is no formula, and no application to file to be assigned one — you find the code that matches the service you actually performed, from the list CBIC publishes, and put it on the invoice next to the line item.

What a SAC code is for

SAC stands for Services Accounting Code, the six-digit classification GST uses for services, the same way HSN codes classify physical goods. It tells your client, and eventually the tax authority, what category of service was billed. It does not change the GST rate on its own — the rate is set separately — but using the wrong code on a business invoice is a common reason a client sends it back for correction.

How to find the right one

Match the service to its category first, not the exact wording of what you called the project. Website design and development sits under IT services, not under general design; a logo or packaging design sits under specialty design services; a translated document sits under a separate code from general writing. The category matters more than finding an exact phrase match.

  • 998313 — IT consulting and support services
  • 998314 — IT design and development services
  • 998391 — Specialty design services (interior, fashion, industrial design)
  • 998395 — Translation and interpretation services
  • 998361 — Advertising services
  • 998311 — Management consulting (financial, strategic, HR, operations)

These are common starting points for freelance work, not an exhaustive list — the full CBIC services classification runs to several hundred codes, and a service that does not fit neatly into one of these six is still worth looking up rather than guessing.

Where it goes on the invoice

There is no dedicated SAC field on most invoicing tools, Paxbil included — it goes in the line-item description, immediately after or alongside the description of the work, the same way it would on a manually typed invoice. "Website redesign — SAC 998314" in the description field is standard practice and reads correctly to both the client and an auditor.

If turnover is below the GST registration threshold and no GST is being charged, a SAC code is not required at all — it only matters once GST is actually on the invoice.

Search the common freelance categories directly on the free SAC code finder

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