What is the Full Form of SAC in GST?
The SAC Full Form in GST is Services Accounting Codes. The government introduced Services Accounting Codes to simplify tax service categorization and implementation. SAC codes’ purpose, structure, and GST relevance are detailed here. GST services have six-digit SAC codes. They set GST rates and categorize services. For effective service organization, use SAC codes as library file systems.
Structure of SAC Code
This six-digit SAC code is structured. The first two digits (Chapter) are always “99,” denoting services (unlike HSN product numbers). 54 for construction services is a broad service category. Services are subdivided (e.g., 11 for multi-story residential complex general construction).
SAC Code Importance
The GST ecosystem uses SAC codes. They clearly characterize the service, ensuring company continuity. GST rates vary per service (0%, 5%, 12%, 18%, 28%). A SAC code unlocks the right service tax rate. Business invoices must have SAC codes. You get tax calculation and transparency. GST return accuracy needs SAC codes. They help classify and tax government transactions. SAC codes ensure companies charge the proper GST rate, simplifying compliance. Clear service categorization facilitates GST audits.
Not everyone needs SAC codes
SAC codes benefit all GST-registered businesses, but those having a turnover exceeding Rs. 5 crore, those using the composition system (with exceptions), and those exporting or importing services must have them.