The 9983 hsn code is the SAC heading for professional, technical and business services such as management consulting, IT services, architecture and engineering, and they are taxed at GST of 18%. Accounting, audit and legal work sit in the next door heading 9982, also at 18%.
Choosing the 6 digit code matters for the GSTR-1 HSN summary and for clients who match codes in their books. This page lists the main codes, explains the common choices for software and consultancy firms, and shows an invoice line. The full list of service codes is on the SAC code hub.
SAC 9983: professional and consultancy: codes and GST rates
Item / SAC / GST- Management consulting18%998311
- Business consulting, including public relations18%998312
- IT consulting and support18%998313
- IT design and development (custom software)18%998314
- Hosting and IT infrastructure18%998315
- Architectural services18%Group 99832
- Engineering services18%Group 99833
- Other professional and technical services n.e.c.18%998399
- Legal services by an advocate to a business18%Heading 9982; business pays under reverse charge
Quick facts
SAC heading
9983: other professional, technical and business servicesGST rate
18%: 9% CGST + 9% SGST, or 18% IGSTExport of services
Zero rated when the conditions for export are metReverse charge
Not for 9983 in general; legal services (9982) by advocates are under RCMDigits to print
4 digits up to Rs 5 crore turnover, 6 aboveRelated heading
9982 for legal, accounting and audit
9983 hsn code description and groups
| Code | Service |
|---|---|
| 998311 | Management consulting and management services |
| 998312 | Business consulting, including public relations |
| 998313 | IT consulting and support |
| 998314 | IT design and development, including custom software |
| 998315 | Hosting and IT infrastructure provisioning |
| 998316 | IT infrastructure and network management |
| 998319 | Other IT services |
| 99832 | Architectural, urban planning and landscape services |
| 99833 | Engineering services |
| 99834 | Scientific and technical services, such as surveying and testing |
| 99836 | Advertising services and space selling |
| 99837 | Market research and opinion polling |
| 99839 | Other professional, technical and business services, such as 998399 |
99831 sac code for consultancy services
Group 99831 covers management and IT consulting. A freelance business consultant who advises on strategy uses 998311. A firm that advises on marketing, branding or public relations uses 998312. Consultancy in a specific technical field, such as engineering or environment, belongs in its own group (99833 or 99834) rather than 99831.
Software hsn code: 998313 or 998314
Software firms often use one of two codes. Use 998314 when you design and develop software or a website for a client. Use 998313 for IT consulting, support and maintenance contracts. Cloud hosting fits 998315. Packaged software sold on a medium is goods under 8523 at 18%, and a licence for ready made software is treated as a service. All of these are 18%, so a wrong choice between them changes the summary but not the tax.
When 998399 is the right code
998399 is the catch all for other professional, technical and business services not covered elsewhere. Use it only after checking the specific codes. Many businesses put every service under 998399, which makes their HSN summary vague. Translation, interior design consultancy and some other specialised services may fit a specific code first.
Gst on consultancy services: invoice and export
Sample invoice: IT consulting and support for the month, SAC 998313, taxable value Rs 1,20,000. CGST 9% Rs 10,800. SGST 9% Rs 10,800. Total Rs 1,41,600.
When a consultant in one state bills a client in another state, the bill carries IGST at 18%. Services to a client outside India, paid in foreign exchange and meeting the export conditions, are zero rated: you can supply under a letter of undertaking without paying tax, or pay IGST and claim a refund. A professional whose turnover crosses the registration limit of Rs 20 lakh (Rs 10 lakh in special category states) must register.
Frequently asked questions
What is the 9983 hsn code gst rate?
Services under SAC 9983 are taxed at 18%. Within a state that is 9% CGST and 9% SGST.
What is the hsn code for consultancy services?
Management consulting is 998311 and business consulting 998312. IT consulting is 998313. Technical consultancy in engineering goes under 99833.
What is SAC 998399?
It is the code for other professional, technical and business services not elsewhere classified, at 18%.
What is the professional fees hsn code for a chartered accountant?
Accounting, audit and tax services are in heading 9982, such as 998221 for financial auditing, at 18%.
Is GST charged on software development services?
Yes, at 18% under 998314. Exports of software services can be zero rated if the export conditions are met.