GST · SAC 998223 · FY 2026–27

SAC 998223: Payroll Services

SAC 998223 (Payroll Services) is taxed at 18% GST: 9% CGST + 9% SGST when you and your client are in the same state, 18% IGST when you are not, and 0% on exports under a Letter of Undertaking (LUT). Covers: Running payroll for a client organisation.

Rate source: Notification 11/2017-Central Tax (Rate), Heading 9982

18%

Domestic
0% export (LUT)

Heading

9982 — legal & accounting services

Domestic rate

18% (9+9 / IGST)

Export (LUT)

Reverse charge

No — forward charge

What falls under 998223

The CBIC Scheme of Classification defines 998223 as "Payroll services" — processing a client organisation's payroll, salary disbursement records, payslips and the associated statutory registers. It is NOT tax consultancy, which is a different group entirely: corporate tax consulting and preparation is 998231 and individual tax preparation and planning is 998232. Bookkeeping is 998222 and statutory audit is 998221.

Monthly payroll processing

Payslip generation

Salary register maintenance

PF/ESI schedule preparation

Not this code — statutory audit, internal audit and assurance services → 998221 · bookkeeping, accounting and financial statement preparation → 998222

On the invoice

Invoice INV-0092SAC 998223

Monthly payroll processing₹25,000

CGST @ 9% + SGST @ 9% (same state — else IGST 18%)+ ₹4,500

Amount due₹29,500

Same work for a foreign client under LUT: IGST 0%, with the zero-rating declaration on the face of the invoice.

Rekha, a Pune-based payroll specialist (MH, state code 27), runs monthly payroll, payslips and PF/ESI schedules for a Gurgaon startup (HR, state code 06). Rs. 25,000 monthly. Inter-state → IGST 18%.

Put this code on a real invoiceFree GST invoice generator — SAC prefilled, CGST-SGST vs IGST resolved from the client's state. No signup.

FAQ

Do I have to print the SAC code on my invoices?

Depends on turnover: up to Rs. 5 crore, the 4-digit SAC (9982) is enough on B2B invoices; above that, 6 digits are required. Printing the full 6-digit code (998223) everywhere is simplest and never wrong.

Under Rs. 20 lakh turnover — do I need to register and charge 18%?

Below Rs. 20 lakh aggregate turnover, registration is optional for pure service providers — you invoice without GST entirely. The Rs. 10 lakh threshold applies in only four special-category states (Manipur, Mizoram, Nagaland, Tripura), not the eleven usually listed online. Once registered, 18% applies to every domestic invoice regardless of turnover.

Wrong SAC code on past invoices — how bad is it?

If the rate charged was right, it is a clerical issue — fix it going forward. A wrong code with a wrong rate is the real problem; that needs a credit note and a corrected invoice. Mismatched SACs also cause GSTR-1 Table 12 disclosure issues and can trigger ITC audit queries at the client end.

Does SAC 998223 change under GST 2.0?

No. The September 2025 rate rationalisation reshuffled the goods slabs; professional and technical services stayed at the 18% standard rate, and export zero-rating under LUT is unchanged.

Notification reference: Notification 11/2017-CT(R) dated 28 June 2017, serial 20, Heading 9982 — "Legal and accounting services" — 9% CGST + 9% SGST (18%). Unchanged by Notification 15/2025-CT(R) (GST 2.0, from 22 September 2025).

For the CA reading this

The deadline sheet you already send, with your name on it

Every statutory date for the month — GST returns, advance tax, and the dates your client's own customers owe them: when the TDS they withheld must reach the department, and when the certificate is due. Add your firm's name and forward it as it stands. No signup, no email, nothing to accept.

Firm name (optional)Month

Download the image

The image is the one that travels on WhatsApp. Dates are statutory, not advice — the sheet says which rows bind whom.

Sources

Rates as notified for FY 2026–27 and can change. General information, not tax advice. Verify with your CA before you file.

Billing 998223 as a freelancer

Use Case

GST on Export of Services Without an LUT: What It Costs and What You Can Still Do

9 min read →Tax Guide

GST Registration Limit for Freelancers: Have You Already Crossed It?

9 min read →Tax Guide

Your Client Wants a GST Bill and You Have No GST Number

9 min read →

Related codes

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