Quick answer
If you sell services in India, your GST invoice needs a SAC code — and most consultants and freelancers land in the 9983 family. Management consultants use 998311, business consultants and PR professionals use 998312, IT consultants use 998313, software and web developers use 998314. Almost all of these carry 18% GST. If your annual turnover is below ₹20 lakh, you do not need GST registration at all, so you do not need a SAC code either. Read on for the full list, how to pick the right code, and what goes wrong when you pick the wrong one.
Why the SAC code on your invoice matters
SAC stands for Services Accounting Code. It is the services counterpart of HSN — HSN is for goods, SAC is for services. Both share the same column on a GST invoice, which is why the field is usually labelled “HSN/SAC”.
The code does two jobs. First, it tells the tax system exactly what service you sold, which decides your GST rate. Second, it lets your client claim input tax credit (ITC) cleanly. When your code and your rate do not line up, your client’s ITC claim can get flagged — and that is a problem that comes back to you.
CBIC (the Central Board of Indirect Taxes and Customs) publishes the official scheme of classification. For most freelance and consulting work, everything you need sits under heading 9983 — “Other professional, technical and business services”.
The complete 9983 code list for consultants and freelancers
Every code below is from the official CBIC classification scheme. The GST rate for all of them is 18% unless a specific exemption applies.
| SAC Code | Service | GST Rate |
|---|---|---|
| 998311 | Management consulting and management services — financial, strategic, HR, marketing, operations, supply chain | 18% |
| 998312 | Business consulting services, including public relations services | 18% |
| 998313 | IT consulting and support services (IT advice, SEO and digital strategy consulting, tech support) | 18% |
| 998314 | IT design and development services (software, web and app development) | 18% |
| 998315 | Hosting and IT infrastructure provisioning services | 18% |
| 998316 | IT infrastructure and network management services | 18% |
| 998319 | Other IT services n.e.c. (not elsewhere classified) | 18% |
| 998361 | Advertising agency services (campaigns, creative, media planning) | 18% |
| 998362–998364 | Sale/purchase of advertising space or time, other advertising services | 18% |
| 998365 | Related services used with advertising, e.g. sale of internet advertising space (AdSense, display, affiliate) | 18% |
| 998391–998392 | Specialty design services — graphic design, UI/UX, brand identity, industrial and interior design | 18% |
| 998399 | Other professional, technical and business services n.e.c. — the catch-all | 18% |
A few codes freelancers ask about sit just outside heading 9983 but work the same way at 18%: 998222 (accounting and bookkeeping services), 998231/998232 (corporate and individual tax consultancy), and 998213 (legal documentation services). If your work is photography, videography, content writing, or training, check the official CBIC list for the closest match — and when nothing fits neatly, use 998399 rather than forcing a code that describes a different service.
How to pick the right code for your work
Match the code to the dominant service in the engagement, not to your job title. A web developer who also advises a client on tech strategy can reasonably use 998314 for the build work and 998313 for the advisory hours. If you supply two genuinely different services, add both codes in your GST registration profile — CBIC’s rules expect this.
Three rules that keep you safe:
- Pick the closest match, not a creative one. If you write marketing copy, that is professional services n.e.c. (998399) — not software development (998314), even if the copy goes on a website.
- Do not chase a lower rate. The 5% and 12% GST slabs apply to specific service categories, not to standard consultancy or freelance work. If your invoice shows 5% for management consulting, your client will face rejected ITC claims and you may face assessment proceedings — plus interest.
- Check before you lock it in. The full official list lives on the CBIC and GST portals (links at the bottom). A two-minute check beats a two-month correction.
The difference between 998313 and 998314
This is the most common confusion among IT freelancers. 998313 covers consulting and support — advice, audits, strategy, ongoing support for someone else’s system. 998314 covers design and development — building software, websites, or apps. If you design the system, it is 998314. If you advise on one, it is 998313. Many freelancers do both, which is fine — just use the right code on each invoice line.
When you do NOT need a SAC code
You only need a SAC code if you are registered for GST. For services, registration becomes mandatory once your aggregate turnover crosses ₹20 lakh in a financial year (₹10 lakh in special category states). Below that threshold, you are not registered and your invoices do not need a SAC code.
Three more cases where the code question answers itself:
- Export of services. Work for foreign clients is zero-rated at 0% GST if you file a valid Letter of Undertaking (LUT). You still put the SAC code on the export invoice, but no tax is charged.
- Inter-state supplies below the threshold enjoy an exemption from registration under the IGST notifications — check whether your situation fits before registering voluntarily.
- Composition scheme. Service providers can opt for the 6% special composition scheme up to ₹50 lakh turnover — but you cannot make inter-state supplies under it and you cannot charge GST to the client, which rules it out for most freelancers.
What a wrong SAC code actually costs you
A wrong code is not a typo the system ignores. Here is what happens in practice:
- Your client’s ITC gets blocked. If the code on your invoice does not match the rate you charged, the client’s ITC claim can be denied. Clients notice this — and some will ask you to fix the invoice or pay the difference.
- Mismatch notices. GST returns auto-compare supplier and recipient data. A code-rate mismatch is exactly the kind of thing that draws a notice.
- Re-billing pain. Correcting a wrong code means issuing credit notes and revised invoices, sometimes months later, with your client’s accounts team involved.
None of this requires a tax degree to avoid. Pick the closest code, keep the rate at 18% for standard consultancy work, and revisit your codes once a year as your services change.
Frequently asked questions
What is SAC code 9983 and what does it cover?
SAC 9983 is the heading for “Other professional, technical and business services” in the official GST classification. It covers management consulting, business consulting, IT consulting and development, advertising, design, and technical services that do not have their own dedicated heading. Most Indian consultants and freelancers bill under one of its sub-codes, such as 998311–998399.
What is the GST rate for services under SAC 9983?
18%. That is the standard rate for virtually all consultancy and professional services under heading 9983. The lower 5% and 12% slabs apply to specific categories of services, not to standard freelance or consulting work. If someone quotes you 5% for management consulting, double-check — the wrong rate puts your client’s ITC at risk.
Which SAC code should I use for management consultancy services?
Use 998311. That is the official code for “management consulting and management services including financial, strategic, human resources, marketing, operations and supply chain management”. If your work is closer to PR or general business advice than management consulting, 998312 is the better fit.
Do I need to put a SAC code on my invoice if my turnover is below ₹20 lakh?
No. SAC codes go on GST invoices, and GST invoices only exist if you are registered for GST. Registration for service providers becomes mandatory above ₹20 lakh aggregate annual turnover (₹10 lakh in special category states). Below that, you are not required to register, so no SAC code is needed on your invoices.
What happens if I use the wrong SAC code on my invoice?
The most common consequence is that your client’s input tax credit claim gets questioned or denied, because the code and the rate do not match. You may also face mismatch notices in GST returns and have to re-issue corrected invoices. Fix it early: a credit note and a corrected invoice now is cheaper than a dispute later.
Can I use the same SAC code for Indian and foreign clients?
The SAC code describes your service, not your client — so the code itself stays the same. What changes is the tax: domestic supplies carry 18%, while exports of services to foreign clients are zero-rated (0% GST) if you file a valid LUT. Put the same SAC code on the export invoice, charge 0%, and keep your LUT current.
Official sources
- CBIC GST portal — official classification scheme and rate notifications: cbic-gst.gov.in
- GST portal — registration, returns and invoice rules: gst.gov.in
- Notification No. 11/2017-Central Tax (Rate) — the rate schedule that carries heading 9983
Reviewed by Asuthod Rathod, CA · Last updated: 13 October 2026
Disclaimer: Tax rules change frequently. Verify the latest position on the official CBIC/GST portals or consult a qualified tax professional before acting.
Editorial byline for eircicai GST guides — covering registration, return filing, rates, and compliance for small businesses. Content is reviewed by Asuthod Rathod, CA.