GST · SAC 998396 · FY 2026–27

SAC 998396: Trademarks and Franchises

SAC 998396 (Trademarks and Franchises) 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: Original trademarks and franchise systems created on your own account.

Rate source: Notification 11/2017-Central Tax (Rate), Heading 9983

18%

Domestic
0% export (LUT)

Heading

9983 — professional & technical services

Domestic rate

18% (9+9 / IGST)

Export (LUT)

0%

Reverse charge

No — forward charge

What falls under 998396

The CBIC Scheme of Classification defines 998396 as "Trademarks and franchises" — original trademarks and franchises, i.e. the legally registered ownership of a brand name, produced on your own account with the intent of letting others use it. The explanatory notes exclude licensing: permitting someone else to use a trademark or run a franchise is 997336, a heading 9973 service with its own rate entries. Filing or drafting trademark documents is legal documentation, 998213; managing trademark or franchise rights for someone else is 998599. Verified 2026-09-24: this entry previously described licensing as 998396.

A registered brand name you created

A franchise system you built

Brand concepts developed on your own account

Not this code — ip filings, licensing paperwork and certification → 998213 · supplying an original design you created on your own account → 998392

On the invoice

Invoice INV-0092SAC 998396

A registered brand name you created₹5,00,000

CGST @ 9% + SGST @ 9% (same state — else IGST 18%)+ ₹90,000

Amount due₹5,90,000

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

Meghna, a Mumbai-based brand strategist (MH, state code 27), builds and registers an original brand and franchise system on her own account and supplies it to a Mumbai retail chain (MH, state code 27). Rs. 5,00,000. Intra-state → CGST 9% + SGST 9%.

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 (9983) is enough on B2B invoices; above that, 6 digits are required. Printing the full 6-digit code (998396) 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 998396 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 — the services rate table, at the serial for the code's heading (9982, 9983, 9985, 9992 or 9996 as applicable), as amended, including 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 998396 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

SAC 998396: Trademarks and Franchises

What falls under 998396

On the invoice

FAQ

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

GST that fills itself in.