Everything You Need To Know About "S" In Gst For Short

Introduction

GST or Goods and Services Tax is a comprehensive indirect tax that was introduced in India on July 1, 2017. It is a destination-based tax that subsumed many indirect taxes like Central Excise, Service Tax, VAT, and others. GST has made the taxation system more transparent, efficient, and uniform across the country. In this article, we will discuss everything you need to know about “S” in GST for Short.

What is “S” in GST for Short?

The “S” in GST for Short stands for “SAC” or “Services Accounting Code.” SAC is a unique code that is used to classify services under GST. It is a 5-digit code that is based on the Harmonized System of Nomenclature (HSN) code. SAC is used to identify the type of service provided by the supplier and to determine the applicable GST rate on that service.

Why is SAC Important Under GST?

SAC is an important aspect of GST as it helps in the efficient and accurate classification of services for the purpose of taxation. SAC helps in identifying the correct GST rate applicable to a particular service, thus avoiding any confusion or disputes related to taxation. SAC also helps in the generation of GST invoices and filing of GST returns.

How to Find the SAC Code for a Service?

The SAC code for a service can be found on the official GST portal or on the SAC code list issued by the Central Board of Indirect Taxes and Customs (CBIC). The SAC code list is available on the GST portal under the “Downloads” section. The SAC code list is updated from time to time, and it is important to use the latest version of the list to ensure accuracy.

How is SAC Different from HSN Code?

SAC is different from the HSN code as SAC is used to classify services, while HSN code is used to classify goods. HSN code is a 4 or 8-digit code that is used to identify the type of goods for the purpose of taxation. HSN code is also based on the Harmonized System of Nomenclature (HSN) code. SAC and HSN code are both important under GST as they help in the efficient and accurate classification of goods and services for the purpose of taxation.

What are the Different Types of SAC Codes?

There are different types of SAC codes based on the type of service provided. Some of the common types of SAC codes are:

Consulting services (9983)
Advertising services (9984)
Transportation services (9965)
Telecommunication services (9985)
Financial services (9971)
Legal services (9982)
Healthcare services (9993)

What is the GST Rate on Services?

The GST rate on services varies depending on the type of service provided. There are four GST rates applicable on services:

5% (for services like transportation, job work, etc.)
12% (for services like hotels, telecom, etc.)
18% (for services like IT, financial, etc.)
28% (for services like casinos, racing, etc.)

How to Calculate GST on Services?

The GST on services can be calculated by multiplying the taxable value of the service by the applicable GST rate. The taxable value of the service is the total amount charged for the service, including any additional charges like taxes, fees, etc. The GST amount can be calculated by multiplying the taxable value by the applicable GST rate.

What are the Documents Required for GST on Services?

The documents required for GST on services are:

Invoice
Bills of supply
Credit note
Debit note
Receipt voucher
Payment voucher

How to Generate GST Invoice for Services?

The GST invoice for services should include the following details:

Name, address, and GSTIN of the supplier
Name, address, and GSTIN of the recipient
Invoice number and date
Description of the service provided
Quantity and unit of measurement (if applicable)
Taxable value of the service
Applicable GST rate and amount
Total amount payable

What is the Due Date for Filing GST Returns for Services?

The due date for filing GST returns for services is the 20th of the next month. For example, the GST returns for the month of January should be filed by the 20th of February. It is important to file the GST returns on time to avoid any penalties or late fees.

What are the Penalties for Non-Compliance with GST on Services?

The penalties for non-compliance with GST on services are:

Rs. 10,000 or 10% of the tax due, whichever is higher, for not filing GST returns
Rs. 100 per day or Rs. 5,000, whichever is lower, for late filing of GST returns
Rs. 10,000 or 100% of the tax due, whichever is higher, for providing incorrect information in GST returns