SAC code 9961 covers services in wholesale trade under GST in India. These include services provided by commission agents, commodity brokers, auctioneers and other intermediaries who facilitate wholesale transactions for a fee or commission. The relevant six-digit classification is SAC 996111, and the standard GST rate is 18%.
What Is SAC Code 9961 for Wholesale Trade Services?
SAC 9961 is the four-digit Services Accounting Code heading for wholesale trade services under GST.
It primarily covers businesses or individuals who facilitate wholesale transactions between buyers and sellers in exchange for a fee, commission or contractual payment.
Examples include wholesale commission agents, commodity brokers, wholesale auctioneers and intermediaries arranging transactions between manufacturers, distributors and bulk buyers.
The GST classification distinguishes these services from the actual supply of goods. A wholesaler purchasing goods and reselling them to retailers generally makes a supply of goods rather than a wholesale trade service under SAC 9961.
SAC Code Classification for Wholesale Trade Services
| SAC code | Classification | Description |
|---|---|---|
| 9961 | Services in wholesale trade | Broad heading for wholesale trade services |
| 99611 | Wholesale trade services group | Services relating to wholesale trade |
| 996111 | Services provided for a fee, commission or contract basis on wholesale trade | Wholesale agents, brokers, auctioneers and qualifying intermediaries |
SAC 996111 is the specific six-digit classification for wholesale trade services provided on a fee, commission or contract basis.
The classification is supported by the official GST Scheme of Classification of Services.
cbic-gst.gov.in
GST Rate on Wholesale Trade Services Under SAC 9961
The standard GST rate on taxable wholesale trade services under SAC 9961 is 18%.
| Service | SAC code | GST rate |
|---|---|---|
| Wholesale commission agent services | 996111 | 18% |
| Commodity brokerage for wholesale transactions | 996111 | 18% |
| Wholesale auction services | 996111 | 18% |
| Wholesale trade intermediary services | 996111 | 18% |
| Qualifying electronic wholesale brokerage services | 996111 | 18% |
For an intra-state taxable supply, GST generally consists of 9% CGST and 9% SGST. For an inter-state taxable supply, 18% IGST generally applies.
Certain specifically notified wholesale trade services may qualify for exemptions. Therefore, businesses should verify the nature of the service and applicable GST notifications before charging tax.
Types of Wholesale Trade Services Covered Under SAC 9961
1. Wholesale Commission Agent Services
Wholesale commission agents connect sellers with bulk buyers and help facilitate transactions without necessarily purchasing the goods themselves.
For example, an agent may arrange a bulk transaction between a manufacturer and a distributor and earn a commission based on the transaction value.
Such commission-based wholesale trade services generally fall under SAC 996111.
2. Commodity Brokerage Services
Commodity brokers help buyers and sellers negotiate wholesale transactions involving agricultural produce, raw materials and other commodities.
Where the activity is a qualifying wholesale trade brokerage service, SAC 996111 may apply.
However, services supplied by agricultural produce commission agents may qualify for specific GST exemptions depending on the applicable conditions.
3. Wholesale Auction Services
Wholesale auctioneers arrange the sale of goods through auctions and charge fees or commissions for their services.
The auctioneer’s service may fall under SAC 996111, while the underlying goods are classified separately under their respective HSN codes.
4. Electronic Wholesale Trade Intermediary Services
Electronic wholesale intermediaries help businesses identify buyers or sellers and facilitate bulk commercial transactions through digital platforms.
When the platform provides a wholesale brokerage or intermediary service for a fee, SAC 996111 may apply.
However, digital platforms providing advertising, software subscriptions or other distinct services may require a different SAC classification.
5. Contract-Based Wholesale Trade Services
Some businesses facilitate wholesale transactions under contractual arrangements rather than earning a percentage-based commission.
Where the contract involves arranging or negotiating wholesale transactions for another party, the service may fall under SAC 996111.
The exact classification depends on the contractual responsibilities and nature of the service.
Difference Between SAC 9961 and HSN Codes for Wholesale Businesses
One of the most common classification mistakes is assuming that all wholesale businesses should use SAC 9961.
| Basis | SAC 9961 | HSN code |
|---|---|---|
| Used for | Wholesale trade services | Goods sold by wholesalers |
| Nature of supply | Services | Goods |
| Examples | Brokerage, commission, auction services | Rice, furniture, electronics, machinery |
| GST rate | Generally 18%, subject to exemptions | Depends on the product |
| Invoice classification | SAC 996111 for qualifying services | Relevant product-specific HSN |
Example: A wholesale distributor purchases 100 cartons of packaged food and resells them to retailers. The distributor should classify the goods using the appropriate HSN code, not SAC 996111.
If a separate commission agent arranges that transaction and charges a brokerage fee, the agent’s service may fall under SAC 996111.
For product classifications, refer to the HSN Code List Under GST.
Are Wholesale Trade Services and Wholesale Sales the Same Under GST?
No. Wholesale trade services and wholesale sales represent different types of supplies.
Wholesale sale of goods: A business purchases products and sells them to retailers, distributors or other businesses. GST is calculated according to the goods supplied and their applicable HSN classifications.
Wholesale trade services: An agent or intermediary facilitates a wholesale transaction for another business and receives a commission or service fee. GST is generally calculated on the consideration for the taxable service.
A business may undertake both activities, but each supply should be classified according to its actual nature.
GST Exemptions Applicable to Wholesale Trade Services
Although wholesale trade services generally attract 18% GST, certain services may qualify for exemptions under specific notifications.
Examples include:
Agricultural produce commission agents: Services supplied by commission agents for the sale or purchase of agricultural produce may qualify for exemption under the applicable GST notification.
Fair price shop services: Specified services supplied by fair price shops to government authorities under the Public Distribution System may qualify for exemption, subject to notification conditions.
Specified intermediary services involving overseas transactions: Certain services under heading 9961 involving transactions where both the supplier and recipient of goods are outside India may qualify for exemption when prescribed conditions and documentation requirements are satisfied.
Businesses should not assume that all agricultural brokerage, government-related wholesale activities or international transactions are automatically exempt.
How to Find the Correct SAC Code for Wholesale Trade Services
Businesses can identify the appropriate classification by following these steps:
- Identify the transaction: Determine whether the business is selling goods or providing a wholesale trade service.
- Check the business’s role: Establish whether it acts as a principal seller, commission agent, broker or intermediary.
- Select the classification: Use SAC 996111 for qualifying fee-based or commission-based wholesale trade services.
- Verify the GST treatment: Check the applicable rate and any exemptions.
- Prepare the invoice: Include the required SAC code and GST details when issuing a taxable service invoice.
Businesses can verify the classification using the official GST HSN/SAC Search Tool.
For other service classifications, explore the SAC Code List Under GST.
Why Is the Correct SAC Code Important for Wholesale Trade Businesses?
Using the correct classification helps businesses distinguish taxable services from the sale of goods.
Accurate GST classification: Identifies whether a transaction should be recorded as a service or a goods supply.
Correct tax calculation: Helps businesses apply the relevant GST rate to brokerage and commission charges.
Invoice accuracy: Supports the inclusion of appropriate SAC or HSN details on invoices.
Better record-keeping: Helps separate wholesale sales revenue from service commission income.
GST reporting: Supports accurate reporting of taxable supplies in GST returns.
GST Calculation Example for Wholesale Commission Services
Suppose a wholesale commission agent arranges a bulk transaction and earns ₹20,000 as commission.
Assuming the service attracts 18% GST:
| Particulars | Amount |
|---|---|
| Wholesale commission | ₹20,000 |
| GST at 18% | ₹3,600 |
| Total invoice amount | ₹23,600 |
For an intra-state taxable supply, GST would generally be divided into ₹1,800 CGST and ₹1,800 SGST.
For an inter-state taxable supply, ₹3,600 IGST would generally apply.
The GST calculation is based on the commission charged by the agent, assuming it is the consideration for the agent’s taxable service. The underlying sale of goods is a separate transaction with its own GST classification.
Frequently Asked Questions
What is the SAC code for wholesale trade services?
Wholesale trade services fall under SAC heading 9961. The six-digit code 996111 covers qualifying services provided for a fee, commission or on a contract basis in wholesale trade.
What is the GST rate for SAC 9961?
The standard GST rate for taxable wholesale trade services under SAC 9961 is 18%. Specific exemptions may apply depending on the service and relevant notification conditions.
What is SAC code 996111?
SAC 996111 covers wholesale trade services provided for a fee, commission or on a contract basis, including qualifying commission agent, commodity brokerage and auction services.
Do wholesalers use SAC 9961 for selling goods?
No. Wholesalers selling goods on their own account generally use the applicable HSN codes for the products. SAC 9961 applies to qualifying wholesale trade services.
Is GST applicable to wholesale commission?
Wholesale commission services generally attract 18% GST when taxable. Specific exemptions may apply, such as qualifying commission agent services involving agricultural produce.
Is SAC 9961 applicable to wholesale distributors?
Not automatically. A distributor purchasing and reselling goods generally makes supplies of goods. SAC 9961 may apply if the distributor separately provides qualifying wholesale trade intermediary services.
Is wholesale brokerage classified under SAC 996111?
Yes, qualifying brokerage services involving wholesale commercial transactions may fall under SAC 996111.
Is SAC 9961 an HSN code?
No. SAC 9961 is a service classification heading. HSN codes are used for goods, while SAC codes are used for services.
Official Sources
CBIC – GST Rates on Goods and Services
CBIC – Scheme of Classification of Services
Last Reviewed: 23 October 2026
