A service hsn code is really a SAC, the Services Accounting Code, and every one of them starts with 99: the code you print depends on the service you actually supply, and most services carry GST at 18%. There is no single code called "service charges"; a repair bill, a consultancy fee and a transport bill each have their own SAC.
This page shows how to find the right code, explains SAC 9987 for repair, maintenance and installation, and covers common doubts such as restaurant service charges. The complete list of service headings is on the SAC code hub.
Service HSN code: codes and GST rates
Item / SAC / GST- Maintenance and repair services18%SAC 9987, groups 99871 to 99873
- Installation of machinery and equipment18%SAC 99873
- Professional and consulting services18%SAC 9983
- Construction and works contracts18%SAC 9954
- Goods transport agency5% or 18%SAC 9965
- Restaurant service charge5% (no ITC)Part of restaurant service
- Hotel rooms up to Rs 7,500 a day5% (no ITC)SAC 9963
- Commercial rent18%SAC 9972
- Bank charges and fees18%SAC 9971
Quick facts
Code system
SAC (Services Accounting Code), all starting with 99Digits to print
4 digits up to Rs 5 crore turnover, 6 aboveMost common rate
18% with input tax creditSAC 9987
Maintenance, repair and installation (not construction)Residual services
18% under the residual entryRestaurant service charge
Takes the restaurant rate
Service hsn code basics: how SAC is built
- Every SAC starts with 99, which marks a service.
- Digits three and four name the heading: 9987 is repair and maintenance, 9983 professional services.
- The fifth digit gives the group, such as 99871 for maintenance and repair of metal products and machinery.
- The sixth digit gives the exact service, such as 998714 for repair of transport machinery.
- Print 4 digits if your turnover is up to Rs 5 crore and 6 digits above that.
Service charges hsn code: pick the service, not the word
Invoices often show a line called service charges. Ask what that service is. A technician's visit to repair a machine is 9987. A consultant's fee is 9983. A courier's handling charge is 9968. A builder's labour on a site is 9954. If service charges are added on top of a sale of goods, such as fitting charges on a new appliance, they are usually part of a composite supply and take the rate of the main item.
9987 hsn code and gst rate
SAC 9987 covers maintenance, repair and installation services other than construction.
| Code | Service | GST |
|---|---|---|
| 998711 | Repair of fabricated metal products | 18% |
| 998712 | Repair of office and computer machinery | 18% |
| 998713 | Repair of computers and peripherals | 18% |
| 998714 | Repair of transport machinery and equipment | 18% |
| 998715 | Repair of electrical household appliances | 18% |
| 998717 | Repair of commercial and industrial machinery | 18% |
| 998719 | Repair of other machinery and equipment | 18% |
| 99872 | Repair of other goods: footwear, watches, jewellery, furniture | 18% |
| 99873 | Installation services (other than construction) | 18% |
Installing a machine in a factory is 99873. Installing wiring, plumbing or AC ducting in a building is construction under SAC 9954. More on repair and maintenance and installation charges.
Service charge on a restaurant bill
A service charge added to a restaurant bill is part of the restaurant service. It is taxed with the food at the same rate: 5% without credit in most restaurants. See the restaurant GST rate page.
Writing a service on an invoice
A repair firm's invoice: Annual maintenance of diesel generator, SAC 998719, taxable value Rs 18,000. CGST 9% Rs 1,620. SGST 9% Rs 1,620. Total Rs 21,240.
Service invoices follow the same rules as goods invoices: GSTIN of both parties for B2B, place of supply, SAC, taxable value and tax split. For services, the place of supply rules decide whether you charge IGST or CGST plus SGST.
Services that are not 18%
- Hotel rooms up to Rs 7,500 a day, restaurants, salons and gyms: 5% without credit.
- Goods transport agency: 5% without credit or 18%.
- Residential lettings for living, most schooling and most health care: exempt.
- Betting, casinos and online money gaming: 40%.
Read this guide to service codes as general information drawn from the SAC list and the services notification. The right code depends on the real nature of the service, so check the GST portal and get advice from a GST practitioner or chartered accountant on contracts that mix goods and services.
Frequently asked questions
What is the hsn code for services?
Services use SAC codes starting with 99. The exact code depends on the service, such as 9987 for repairs or 9983 for consulting.
What is the 9987 hsn code gst rate?
SAC 9987, maintenance, repair and installation services, is taxed at 18%.
What is the hsn code for service charges?
There is no single code. Use the SAC of the service actually supplied. A restaurant service charge takes the restaurant code and rate.
Is SAC the same as HSN?
No. HSN codes describe goods and SAC codes describe services, though invoices print either one under a shared HSN/SAC heading.
What rate applies to a service not listed anywhere?
Services not named in the rate notification fall under the residual entry at 18%.