SAC code 9988 under GST refers to manufacturing services on physical inputs (goods) owned by others, commonly known as "job work". It covers processing, assembly, and manufacturing services where the raw materials are provided by a principal, but the job is done by another person. The GST rate is typically 5%, but can range from 1.5% to 18%.
This is the default GST rate for most job work services under HSN Code 9988, including: Bus Body Manufacturing: When a firm fabricates or assembles the body of a bus using chassis or materials owned by others, the service attracts 18% GST.
Steel Fabrication HSN Code
The most common codes applied here include 7308, 7326, and 998873, with an 18% GST rate applicable across most services.
GST Tax Rate: 18%
Services Accounting Codes (SAC Codes) 998860 is used for the Basic metal manufacturing services under Goods and Service Tax classification. SAC (Services Accounting Code) are used for the identification of the service. This service comes under heading Manufacturing services on physical inputs (goods) owned by others.
SAC codes range from 0% to 28% in terms of tax rates. If a service doesn't have a specific SAC code list, it is generally subject to an 18% GST levy by default.
Classification of services - Job Work - work of Chocolate Manufacturers, Confectionery Manufacturers, Food Product Retailers, Sugar Coated Chocolate Manufacturers - the SAC of the Service Offered by applicant is “998816” i.e., “Other food product manufacturing services” and the rate of tax as seen from the above entry ...
HSN Code 998876: General-purpose machinery manufacturing services n.e.c.
HSN Code 998894: Musical instrument manufacturing services.
Textile processing services like bleaching, printing, and finishing treatments are classified under the GST Service Accounting Code (SAC) 998821 – “Textile manufacturing services” (job work on textiles). definition of “job work” – it would be taxed at the general 18% rate as a manufacturing service on others' goods.)
HSN Code 998877: Special-purpose machinery manufacturing services.
HSN Code 998898: Other manufacturing services n.e.c.
Job Work for Other Industries For all other industries, including the food and beverage, electronics, and engineering industries, the GST rate for job work is 12%. Job Work on Handicraft Goods The GST rate for job work on handicraft goods is 5%.
A single wrong HSN code can cause a chain reaction across your accounting and compliance system: Tax rate mismatch: Incorrect HSN = wrong GST rate = wrong tax collected or paid. Return reconciliation errors: GSTR-1 vs GSTR-3B mismatches. Customer disputes: Buyers may lose input tax credit.
Key Categories of Goods under 40% GST Slab
Who is liable to pay GST under the proposed GST regime? Under the GST regime, tax is payable by the taxable person on the supply of goods and/or services. Liability to pay tax arises when the taxable person crosses the turnover threshold of Rs.
For example, if your original price is $100, multiply this by 1.15 to equal $115. Work out your GST-inclusive price by multiplying your original price by 1.15. For example, if your original price is $100, multiply this by 1.15 to equal $115.
Part of 9988 manufacturing services on physical inputs. Rate tables list 1.5% / 5% / 12% / 18% and Nil with an explicit condition that concessional rates apply only when specially certified (for example certain sports event services); typical commercial dairy job work is billed at 18% with ITC.
The following category of tax persons are exempted from payment of 1% of GST in Cash 1. Registered taxpayers who have paid income tax above Rs 1.00 in Income Tax during the last two years continuously 2. Taxpayers who have zero-rated supplies without payment of duty and claimed refund of more than Rs 1.00 lac 3.
HSN Code 998811: Meat processing services.
HSN Code 9988 covers “Manufacturing Services on Physical Inputs (Goods) Owned by Others.” This includes all forms of job work or contract manufacturing, where a registered manufacturer (the job worker) performs processing, assembly, or production on inputs or goods owned by another person (the principal manufacturer).
GST Portal – Steps to Search HSN/SAC Tax Rates
2022, Works contract services provided to Central and State Government, or Local Authorities, which were earlier eligible for concessional rate of 12% GST,would attract GST at the rate of 18% in view of amendment carried out in notification No. 11/2017- Central Tax (Rate) vide notification No.