SAC code 998898 refers to "Other manufacturing services n.e.c. (not elsewhere classified)" under the GST regime in India, specifically covering miscellaneous job work activities. It applies to various manufacturing services performed on physical inputs owned by others, such as surface coating on new goods,, or custom manufacturing, generally taxed at 18%.
The main SAC Code used for job work is 9988. In this code: The first two digits (99) show that it is a service. The next two digits (88) represent the job work category.
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.
For Recruitment and HR Services, SAC Codes 99851 come into play. These codes encompass a wide range of services, including executive personnel search, contract staffing, and more.
sponsorship services and brand promotion services.
What is the SAC Code in GST? The SAC code stands for Services Accounting Code and applies to all services provided within India. This system is used to identify, classify, measure, and determine the GST applicable to services in India. The HSN (Harmonized System Nomenclature) code is used for goods in India.
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).
HSN code 998519 specifically pertains to "Other employment and labour supply services." It is used for billing labour charges related to services such as contract staffing, temporary labour supply, and other manpower services that do not fall under executive or professional staff leasing.
Schedule II of the CGST Act– any treatment or process which is applied to another person's goods is a supply of services. Thus, the charges for the job work done, in common parlance, labour charges, will attract GST (in the absence of any exemption as under the current service tax law) as supply of service @18%.
rate of 5% of Job work in relation to gold shall not apply in the instant case and the Jeweller shall charge GST @ 18% on the making charges. 4. The customer (unregistered) supplies part of the old gold, precious stones to make jewellery and some amount of gold is added by the jeweler.
HSN (Harmonized System of Nomenclature) codes classify goods under GST, while SAC (Services Accounting Code) is used for categorizing services for taxation purposes.
Job-work charges means the valuable consideration received or receivable by a job-worker during a given period for executing a job- work minus the value of materials which are purchased by him on payment of sales tax in the State of Haryana and are consumed by him in execution of job-work during that period.
HSN Code 998881: Motor vehicle and trailer manufacturing services.
The SAC code for Job work is 9988. Where “88” represents the major nature of service “Job Work.”
HSN Code 998898: Other manufacturing services n.e.c.
What Is SAC Code 9954? Services included under construction services of all types including residential, commercial, industrial and civil engineering work fall under the category of SAC (Services Accounting Code) 9954 which is classification goods and services tax in India for construction services.
The percentage varies, but labor costs include employee's salaries, cost of benefits, and taxes. They are often broken up into direct costs and indirect costs. The sales price of a product or service takes into account the labor costs and any other overhead expenses, including materials.
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.)
Services Accounting Codes (SAC Codes) 998892 is used for the Jewellery 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.
HSN Code 9987: This code is used for services related to textiles, such as weaving, knitting, stitching, embroidery, and other similar activities.
9988. Other Manufacturing services on physical inputs (goods) owned by others, 18% with ITC. 18% with ITC. Generic manufacturing or processing services on goods owned by others that are not covered by any concessional job work entry continue to be taxed at the standard service rate.
SAC codes consist of six digits and always begin with 99, which represents the services chapter. HSN codes have eight digits and vary based on the type of product. Both systems help determine applicable GST rates and ensure accurate tax reporting, but they apply to different transaction types.
HSN codes are utilized to classify goods under the Goods and Services Tax (GST), with the World Customs Organization issuing these 8-digit codes. On the other hand, SAC codes, which are 6-digit codes, are employed to categorize services and issued by the Central Board of Excise and Customs (CBEC) department.