The SAC code for support services is 9985, and the general GST rate is 18% in India. This heading covers business support activities such as staffing, security, cleaning, office administration, customer support and event organisation. Certain services have different GST rates or exemptions.
Support services are classified under SAC (Services Accounting Code) rather than HSN, which is used for goods. Businesses must select the appropriate six-digit SAC code based on the actual service provided.
What Is the SAC Code for Support Services?
Support services fall under SAC heading 9985, which covers services that help businesses manage their administrative, staffing and operational activities.
| Particular | Details |
|---|---|
| Service | Business and operational support services |
| SAC heading | 9985 |
| Classification | Support services |
| General GST rate | 18% |
| CGST + SGST | 9% + 9% |
| IGST | 18% |
| Other applicable rates | Certain services may attract 5% GST or qualify for exemptions |
SAC 9985 is a broad classification, not a single six-digit service code. Businesses should use the specific code that matches the service supplied.
SAC Codes for Different Types of Support Services
Support services include several categories, each with its own SAC classification.
| Support service | SAC code |
|---|---|
| Executive personnel search services | 998511 |
| Permanent recruitment and placement services | 998512 |
| Contract staffing services | 998513 |
| Temporary staffing services | 998514 |
| Long-term staffing and payroll services | 998515 |
| Security consulting services | 998522 |
| Security systems services | 998523 |
| Security guard services | 998525 |
| General cleaning services | 998533 |
| Packaging services of goods for others | 998540 |
| Tour operator services | 998555 |
| Credit reporting and rating services | 998591 |
| Collection agency services | 998592 |
| Telephone-based support services | 998593 |
| Combined office administrative services | 998594 |
| Specialised office support services | 998595 |
| Event and exhibition organisation services | 998596 |
| Landscape care and maintenance services | 998597 |
| Other support services not elsewhere classified | 998599 |
These classifications follow the official GST scheme of services. The applicable GST rate depends on the specific service and relevant notifications.
GST Rate on Support Services in India
Most taxable support services under SAC 9985 attract 18% GST. However, certain services have concessional rates or exemptions.
| Type of support service | General GST treatment |
|---|---|
| Recruitment and staffing services | 18% |
| Security and guard services | 18% |
| Office administration services | 18% |
| Telephone-based customer support services | 18% |
| Cleaning services | 18%, unless a specific concession or exemption applies |
| Event management and exhibition support | 18%, generally |
| Tour operator services | 5%, subject to prescribed conditions |
| Certain housekeeping services supplied through e-commerce operators | 5%, subject to prescribed conditions |
| Other business support services | 18%, generally |
The CBIC rate schedule identifies 18% as the general rate for support services under heading 9985, with specific exceptions. GST on Staffing and Recruitment Services
Recruitment agencies and staffing companies provide services such as employee placement, temporary staffing, contract staffing and payroll administration.
These services generally attract 18% GST.
For example, an agency charging a business for recruiting employees generally uses SAC 998512 for permanent placement services.
A company supplying contract workers may use SAC 998513, depending on the arrangement.
The GST classification depends on the service supplied, not merely the job titles of the workers.
GST on Security Services
Security services include providing security guards, security consulting and security system-related services.
These services generally attract 18% GST.
However, certain security services supplied by persons other than a body corporate to registered recipients may fall under the Reverse Charge Mechanism (RCM), subject to notified exceptions.
Businesses should determine whether the supplier or recipient is responsible for paying GST before preparing the invoice.
GST on Cleaning and Housekeeping Services
General cleaning services, including cleaning offices, commercial premises and business establishments, generally fall under SAC 998533.
The standard GST rate is 18%.
Certain qualifying housekeeping services supplied through an e-commerce operator may attract a concessional rate under specific conditions.
Other notified exemptions may apply to particular services and recipients. These should not be assumed to cover every cleaning or housekeeping contract.
GST on Office Administration and Customer Support
Office administration, telephone-based support and other outsourced business support services generally attract 18% GST.
Examples include:
- Managing routine office administrative activities
- Telephone-based customer support
- Answering calls and processing customer enquiries
- Document preparation and related office support
- Collection agency services
The appropriate SAC code depends on the principal service provided.
What Is SAC Code 998599 for Other Support Services?
SAC 998599 covers other support services not elsewhere classified under the relevant service classification scheme.
It may apply to certain specialised business support activities that do not fit a more specific SAC category.
However, businesses should not use SAC 998599 as a default code for every outsourced or miscellaneous service.
For example, telephone-based customer support has a specific classification under SAC 998593, while combined office administration falls under SAC 998594.
Where a more specific classification exists, that code should generally be preferred.
GST Calculation Example for Support Services
Suppose a business support agency charges ₹50,000 for taxable office administration services under SAC 998594.
| Particular | Amount |
|---|---|
| Office administration charges | ₹50,000 |
| GST at 18% | ₹9,000 |
| Total invoice value | ₹59,000 |
For an intra-state supply, GST consists of ₹4,500 CGST and ₹4,500 SGST.
For an inter-state supply, ₹9,000 IGST generally applies, subject to the place-of-supply provisions.
This example assumes an ordinary taxable support service under the forward-charge mechanism.
Is Reverse Charge Applicable to Support Services?
Certain support services may attract GST under the Reverse Charge Mechanism (RCM).
Under RCM, the notified recipient pays GST to the government instead of the service provider.
For example, specified security services provided by a person other than a body corporate to a registered person may fall under reverse charge, subject to the applicable exclusions.
However, RCM does not apply automatically to every service classified under SAC 9985.
Businesses should check the supplier’s legal status, recipient category and relevant GST notification before deciding who must pay the tax.
Difference Between Support Services and Related Services
Not every service that supports a business falls under SAC 9985.
| Service | SAC heading or code | Classification |
|---|---|---|
| Business support services | 9985 | Staffing, administration, cleaning and other support activities |
| Management consulting services | 998311 | Management consulting and management services |
| IT consulting and support services | 998313 | Information technology consulting and support |
| Maintenance and repair services | 9987 | Repair and maintenance of machinery, equipment and other goods |
| Support services in transport | 9967 | Supporting activities related to transportation |
| Support services to agriculture and utilities | 9986 | Agriculture, mining and utility support activities |
For example, providing outsourced telephone-based customer support generally falls under SAC 998593.
However, advising a business on management strategy may fall under SAC 998311.
Businesses offering advisory services can refer to the SAC classification for consulting and management services to understand the distinction.
How to Identify the Correct SAC Code for Support Services
Businesses should identify the primary service supplied before selecting a SAC code.
If the service involves employee recruitment or staffing, the relevant classification generally falls under SAC group 99851.
For security-related services, businesses should check group 99852.
Cleaning and housekeeping services generally fall under group 99853, while office administration and telephone-based support fall under group 99859.
Businesses should then verify the applicable GST rate, exemption conditions and reverse-charge provisions.
The service agreement and invoice description should accurately reflect the activity performed.
The classification can also be checked through the official GST Portal’s HSN/SAC search facility.
FAQs About Support Services SAC Codes
What is the SAC code for support services?
The SAC heading for support services is 9985. The exact six-digit code depends on the service, such as 998593 for telephone-based support or 998594 for combined office administration.
What is the GST rate on support services?
Most taxable support services under SAC 9985 attract 18% GST. Certain services, including qualifying tour operator services, may attract different rates.
What is the SAC code for business support services?
Business support services may fall under several codes within heading 9985. SAC 998599 covers other support services not elsewhere classified, while specific activities have separate codes.
What is the SAC code for customer support services?
Telephone-based customer support services generally fall under SAC 998593.
Is GST applicable on security guard services?
Security guard services generally attract 18% GST. Certain transactions may be subject to reverse charge, depending on the supplier and recipient.
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Staffing agencies, administrative service providers and other support businesses need accurate invoices to record service fees, applicable GST and customer payments.
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Using the correct SAC code helps maintain accurate invoices for different types of support services.
