A SAC code is the six-digit GST classification for a service, and as an exporter you use the same code in three places: your export invoice, your GST return and the SAC column of EDF Part 2B. Most Indian service exporters end up using a handful of codes, such as 998314 for IT design and development or 998311 for management consulting, but the right one depends on what your contract actually delivers, so confirm your choice with your CA.
Key takeaways
- SAC stands for Services Accounting Code. Every service code starts with 99 and has six digits.
- Exports under LUT carry no IGST, but you still need the correct SAC on the invoice.
- Part 2B of the EDF has a SAC column for every invoice row. Use the code from that invoice, not a generic one.
- A business can legitimately use more than one SAC code if it sells different kinds of service.
- The SAC code and the RBI purpose code are different systems. One is for GST, the other for foreign exchange reporting.
Why the code matters even at zero rate
Export of services is a zero-rated supply under Section 16 of the IGST Act. If you export under LUT, you charge no IGST at all. It is tempting to think the SAC code is then a formality. It is not.
The code tells the tax department what you supplied. It drives how your supply is reported, it is checked if you claim a refund, and it should line up with the description on your EDF. A software firm whose invoices say 998361 (advertising) will raise eyebrows, even if no tax was charged. Our glossary entry on the SAC code explains the structure.
The codes service exporters use most
Below are the codes that come up most often for Indian businesses billing foreign clients. The descriptions are summaries; read the full official description and confirm with your CA before adopting one.
| SAC | Short description | Typical exporters |
|---|---|---|
| 998311 | Management consulting and management services | Strategy, operations and business consultants |
| 998313 | IT consulting and support services | IT advisory, support desks, managed IT support |
| 998314 | IT design and development services | Custom software, web and app development |
| 998315 | Hosting and IT infrastructure provisioning | Hosting, cloud infrastructure management |
| 998319 | Other information technology services | IT services not covered by the codes above |
| 998361 | Advertising services | Ad agencies, media planning and buying |
| 998371 | Market research services | Survey, research and consumer insight firms |
| 998222 | Accounting and bookkeeping services | Outsourced bookkeeping, accounts preparation |
| 998393 | Other specialty design services | Graphic, packaging and similar design studios |
If none of these fits, use our SAC code finder to search by keyword, then take the shortlist to your CA.
Choosing between neighbouring codes
The most common confusion is inside the 9983 group, especially among the IT codes.
998313 or 998314
998314 is about designing and developing something: an application, a website, a platform. 998313 is about advising on and supporting IT systems. A firm that builds a new mobile app for a client is closer to 998314. A firm that runs a 24x7 support desk for that same app after launch is closer to 998313. If one contract does both, split the invoice lines or ask your CA which code reflects the main supply. Our deeper piece on SAC codes for software and IT services works through more examples.
998311 or 998313
Management consulting covers advice on strategy, organisation and operations. IT consulting is advice about technology systems. A digital transformation engagement can sit in either, depending on whether the core deliverable is a business recommendation or a technology plan.
998361 or 998371
Advertising is about creating and placing promotional content. Market research is about gathering and analysing information. An agency that runs a client's paid campaigns is in 998361; one that runs consumer surveys is in 998371.
A business with more than one code
Pinecrest Digital LLP in Jaipur does three things for overseas clients: website development, paid advertising management and occasional market research reports. In February 2027 it raises three invoices:
| Invoice | Client | Service | SAC | Amount |
|---|---|---|---|---|
| PD/2027/018 | Oakridge Dental, Canada | New website build | 998314 | CAD 7,800 |
| PD/2027/019 | Bloom & Vine, Australia | Monthly paid ads management | 998361 | AUD 3,200 |
| PD/2027/020 | Northgate Foods, UK | Market study, plant-based snacks | 998371 | GBP 4,500 |
All three go on Pinecrest's single EDF for February 2027, due 30 March 2027, as three Part 2B rows. Each row carries the SAC from its own invoice. Using one "main" code across all three would be wrong.
Where the SAC code appears
| Document | Where | Notes |
|---|---|---|
| Export invoice | Line item | Required for GST invoices; also add LUT wording if exporting under LUT |
| GST return | Export supplies reporting | Ask your CA which table and level of detail applies to you |
| EDF Part 2B | SAC column of each invoice row | Must match the invoice |
| GST refund claim | Supporting documents | Only relevant if you paid IGST or claim unused ITC |
The SAC code should be identical in all of them. Keeping it in your invoice template saves you retyping, and our free export invoice generator has a SAC field for each line.
SAC code vs purpose code
Exporters sometimes assume the bank's purpose code and the GST SAC code are the same thing. They are not.
- SAC code: a GST classification you choose and print on your invoice.
- Purpose code: an RBI code attached to the inward remittance, such as P0802 for software consultancy or P1006 for business and management consultancy. It appears on your FIRA or bank advice.
They should tell a consistent story. An invoice with 998314 paired with a purpose code for advertising suggests something is off. If your bank tagged a remittance with the wrong purpose code, ask it to correct it. This is general information, not legal or tax advice.
Frequently asked questions
Do I need a SAC code on an export invoice if no GST is charged?
Yes. An export under LUT carries no IGST, but it is still a GST supply and the invoice should show the correct SAC code. The code is also needed in the SAC column of EDF Part 2B.
Can one company use different SAC codes for different clients?
Yes, if the services are genuinely different. Each invoice, or each line on an invoice, should carry the code that matches what was supplied. On the EDF, each Part 2B row uses the code from its own invoice.
What SAC code should a software development company use?
Custom software and app development usually falls under 998314, IT design and development services. Support and maintenance may sit under 998313. Confirm the right code for your contracts with your CA.
Is the SAC code the same as the purpose code on my FIRA?
No. SAC is a GST code you put on your invoice. The purpose code is an RBI code attached to the foreign remittance by your bank. They should be consistent with each other, but they come from different systems.
What happens if I used the wrong SAC code on earlier invoices?
Speak to your CA about whether and how to correct it in your GST records. For the EDF, tell your bank if a Part 2B row carried the wrong code and ask how it wants it corrected.
Bottom line
Pick the SAC code that describes what your contract actually delivers, use it consistently across invoice, return and EDF, and check it with your CA once rather than guessing every month. Start with our free SAC code finder, and pair it with the purpose code finder so both codes tell the same story.
This guide is general information for Indian businesses, not legal or tax advice. Rules and bank processes change — confirm specifics with your AD bank or chartered accountant.