GST and SAC code for manpower supply services
The correct SAC code and GST rate for manpower and labour supply services, plus when reverse charge applies.
Key takeaways
- Manpower supply uses a SAC code, not an HSN code.
- The standard GST rate on manpower supply is 18%.
- Pure labour to government bodies can attract specific exemptions, check the notification.
Manpower supply is a taxable service under GST, billed under a Service Accounting Code (SAC), not an HSN code (HSN is for goods). Getting the code and rate right on every invoice keeps your input credit clean and your clients happy.
SAC code vs HSN code
Services are classified under SAC codes; goods under HSN. Manpower and labour supply is a service, so your invoices carry a SAC code. Manpower recruitment and supply services fall under SAC heading 9985.
The GST rate on manpower supply
Manpower supply is generally taxed at 18% GST. Charge it on your invoice unless a specific exemption applies to the service or the recipient.
When reverse charge or exemption applies
Certain pure-labour services provided to government or specified bodies can be exempt or fall under reverse charge, where the recipient pays the GST. These depend on the exact notification and the nature of the work, so confirm before you bill.
Frequently asked questions
What is the SAC code for manpower supply?+
Manpower recruitment and supply services fall under SAC heading 9985. Use the specific sub-code that matches your exact service on the invoice.
What is the GST rate on labour supply?+
The standard rate is 18%. Some pure-labour services to government bodies may be exempt under specific notifications, so verify before invoicing.
manpowertenders Editorial Desk
Research on tenders, staffing and labour compliance. This guide is general information, not legal or tax advice; confirm specifics against the official rules before acting.