12 GST HSN Code For Services

 The HSN (Harmonized System of Nomenclature) code system is primarily used for goods, while the SAC (Services Accounting Code) system is used for services. Below are some common SAC codes for services that attract a GST rate of 12% in India:

SAC Codes for Services with 12% GST Rate

1. 9954: Construction Services

   • Description: Construction of buildings, civil engineering works, and specialized construction activities.
   • Examples: Residential or non-residential buildings, roads, bridges, tunnels.

2. 9965: Goods Transport Services

   • Description: Services related to the transportation of goods.
   • Examples: Transportation of goods by road, rail, air, and sea (excluding courier services).

3. 9971: Financial and Related Services

   • Description: Financial services, including insurance and pension services, other than life insurance.
   • Examples: Banking services, asset management services, stock brokerage services.

4. 9988: Manufacturing Services on Physical Inputs (Goods) Owned by Others

   • Description: Services involving the processing, assembly, labeling, packing, etc., of goods owned by others.
   • Examples: Job work services, subcontracting services.

5. 9992: Medical and Healthcare Services

   • Description: Services related to human health care and social work activities.
   • Examples: Hospital services, medical and dental services.

Detailed Examples:

1. Construction Services (SAC 9954)

   • Example: A contractor building residential apartments or commercial offices. The service provided for the construction will attract 12% GST under SAC 9954.

2. Goods Transport Services (SAC 9965)

   • Example: Transporting goods via rail from one state to another. This transport service is taxed at 12% GST.

3. Financial and Related Services (SAC 9971)

   • Example: A bank providing asset management services to its clients. These services fall under this SAC and are taxed at 12% GST.

4. Manufacturing Services (SAC 9988)

   • Example: A company providing job work services such as assembling electronic components provided by another company. These services attract 12% GST.

5. Medical and Healthcare Services (SAC 9992)

   • Example: Private hospitals providing non-critical healthcare services. Such services might fall under 12% GST, depending on the specific nature of the service and prevailing exemptions.

Application in Invoicing and Compliance

When invoicing for services, it is essential to use the correct SAC code to ensure compliance with GST regulations. Proper classification helps in accurate tax filing and reduces the risk of disputes or penalties from tax authorities.