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SAC 9985
SAC Code for Labour Charges and Manpower Supply
Labour charges and manpower supply are services, so they use a SAC code, not an HSN code. They fall under SAC 9985 (support services). Supply of labour or staff is taxed at 18%.
- SAC code
- 9985
- GST rate
- 18%
- Rates as of
- GST 2.0 (from 22 Sep 2025)
- Last checked
Labour Charges & Manpower Supply SAC code list with GST rates
| SAC code | Description | GST |
|---|---|---|
| 998513 | Contract staffing services | 18% |
| 998514 | Temporary staffing services | 18% |
| 998515 | Long-term staffing (payrolling) services | 18% |
| 998519 | Other employment and labour supply services | 18% |
| 9988 | Job work (labour on goods owned by someone else) | Depends on goods (commonly 5% or 18%) |
Labour supply vs job work vs works contract
If you supply workers to a client, use 9985 (for example 998519) at 18%. If you process goods that belong to your client, that is job work under SAC 9988, where the rate depends on the goods and process. If you carry out construction work, use 9954 (construction services).
A labour charge on an invoice should be described with the actual nature of the service so the right SAC code and rate apply.
GST calculator for labour charges & manpower supply
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Frequently Asked Questions
What is the SAC code for labour charges?
Labour and manpower supply fall under SAC 9985; 998519 covers other labour supply services.
What is the GST rate on labour charges?
18% for labour and manpower supply.
What is the SAC code for manpower supply?
998513 for contract staffing and 998519 for other labour supply, both at 18%.
Is there an HSN code for labour charges?
No. Labour charges are services and use SAC codes (chapter 99), not HSN codes for goods.
What is the GST on job work labour charges?
Job work falls under SAC 9988 and the rate depends on the goods and process, commonly 5% or 18%.
Is TDS deducted on labour supply payments?
Payments for labour contracts generally attract TDS under Section 194C at 1% or 2% above the thresholds.
How many digits of the HSN or SAC code must be shown on an invoice?
Businesses with aggregate turnover up to ₹5 crore must show 4 digits on B2B invoices; above ₹5 crore, 6 digits are mandatory on all invoices.
What happens if the wrong HSN or SAC code is used?
A wrong code can lead to the wrong tax rate, mismatches in returns and possible demands with interest and penalty. Correct the classification and, if tax was underpaid, pay the difference with interest.
Where can the GST rate for a code be verified?
Check the current CBIC rate notifications for the exact tariff entry, description and conditions. Rates on this page reflect GST 2.0, effective 22 September 2025.
Is this page an official classification ruling?
No. Taxzentic is an independent reference. Classification depends on the exact product or service; seek professional advice or an advance ruling for disputed items.