GST rate on freelance services and the SAC codes that apply

Two questions come up the day a freelancer registers for GST: what rate do I charge, and what is this SAC code my client's accountant keeps asking for? The short answers are 18% and a six-digit service classification you pick once — here is the longer version.

Why 18% is the default

GST puts services into rate slabs, and 18% is the residual slab — anything not specifically listed elsewhere lands there. Professional and technical services (IT, design, consulting, marketing, writing) are not listed elsewhere, so essentially all freelance service work attracts 18%. The lower slabs cover specific categories like certain transport or job-work; assume 18% and verify your service against the official rate schedule once, rather than hoping a lower slab applies.

One rate, two ways to split it

• Client in your state: split as CGST 9% + SGST 9% — two lines on the invoice.
• Client in another state: one IGST line at 18%.
• Client outside India, paid in foreign currency: usually a zero-rated export under LUT — no tax charged, covered in the international clients guide.

The switch between the first two is the place of supply field — which is why the invoice format requires it.

SAC codes freelancers actually use

The Services Accounting Code classifies what was sold. All services start with 99; the third and fourth digits name the group; the last two the specific service. The codes that cover most freelance work:

• 998313 — IT consulting and support
• 998314 — IT design and development (the workhorse for developers)
• 998311 — management consulting
• 998361 — advertising services
• 998391 — specialty design services (graphic, interior, fashion)

Pick the code that best matches the substance of what you deliver, verify it against the official SAC list once, and reuse it on every invoice for that kind of work. Consistency matters more than agonizing between two adjacent codes — what raises questions is the same service appearing under different codes across invoices.

How many digits must appear on the invoice?

The mandatory digit count depends on turnover — smaller businesses may show four digits on B2B invoices, larger ones six on everything. In practice, just show the full six-digit code: every threshold is satisfied, and your client's accounting software maps it automatically.

Quote GST on top, always

Registered B2B clients claim your GST back as input credit, so "₹50,000 + 18% GST" costs them ₹50,000. A quote that silently included GST costs you ₹7,627 of it. Put "+ GST" on quotes, proposals, and rate cards, and let the GST invoice generator do the split arithmetic on the invoice itself.

General information, not tax advice — rates, codes, and thresholds change. Confirm specifics with a professional.