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Which SAC code applies to consultancy charges?
The CBIC service classification separates consultancy by subject and type of work. Use the descriptions below as starting points, then match them to the engagement’s actual deliverables. CBIC’s classification annexure sets out these categories.
| Work provided | SAC starting point | What the category covers |
|---|---|---|
| Management consulting | 998311 | Management advice, including financial, strategic, human resources, marketing, operations and supply-chain management. |
| Business consulting | 998312 | Business consulting, including public-relations services. |
| IT consulting and support | 998313 | Consulting and support services specifically related to information technology. |
| Corporate tax consulting or preparation | 998231 | Corporate tax consulting and preparation, classified within the tax-services group under Heading 9982. |
| Individual tax preparation or planning | 998232 | Tax preparation and planning services for individuals, classified within Heading 9982. |
These distinctions mean that an invoice description such as “consultancy charges” alone does not establish the SAC. Describe the service in terms of its real output—for example, management strategy advice, IT implementation support or corporate tax preparation—and select the category that corresponds to that work.
How to identify the closest category
- Identify the main deliverable. Look at the scope of work, contract and invoice description. The name of the engagement is less informative than what the consultant actually provides.
- Check whether the work is management advice. Financial, strategic, HR, marketing, operations and supply-chain management advice point toward 998311.
- Separate broader business or PR advice. Business consulting, including public relations, is listed at 998312.
- Use the IT category for IT-specific work. IT consulting and support have a separate listing at 998313; do not default to a general management or business category merely because the provider calls the work “consulting.”
- For tax services, distinguish the client and service. The schedule places corporate tax consulting/preparation at 998231 and individual tax preparation/planning at 998232.
- Review mixed engagements as a whole. If one contract combines advice with goods, maintenance, implementation or another substantial deliverable, the generic word “consultancy” may not resolve classification. Consider the contract facts and relevant GST treatment.
Does consultancy attract 18% GST?
CBIC’s rates page lists a general entry for Heading 9983—other professional, technical and business services—at 9% CGST plus 9% SGST/UTGST, or 18% combined, for services other than specified exceptions. For an inter-state supply, the corresponding tax is generally charged as IGST. The heading-level rate is not a rule that every service called consultancy is always taxed at 18%: check the precise service, any specific rate entry or exemption, place-of-supply treatment and applicable supplier or recipient rules. See the CBIC GST rates page and verify current notifications, including amendments to Notification 11/2017-Central Tax (Rate), for the transaction in question.
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What if the engagement includes goods as well as advice?
Whether an engagement is only a service or also involves goods can matter to its GST treatment. In its explanation of “pure services,” CBIC gives advisory services with no supply of goods as an example. It contrasts this with maintenance that includes replacement parts, which it treats in that example as involving goods and as works-contract services. The example illustrates why the actual scope matters; it does not establish a blanket rule for every consulting contract. Read CBIC’s sectoral FAQs.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What to put on an invoice
Use a description that tells the reader what service was performed rather than relying only on “consultancy charges.” For example, identify management advisory work, business or public-relations consulting, IT consulting/support, or the relevant tax service. The description should accurately reflect the engagement and support the SAC chosen; an invoice label by itself does not settle a disputed classification.
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If an engagement bundles materially different services or supplies goods, review the contract and facts before assigning a single code. Where the classification or tax result materially affects an invoice, get advice from a qualified GST professional.
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