Labour Charges SAC Code List with GST Rates
Labour charges are generally treated as a service rather than goods, so a SAC Code is used instead of an HSN code. SAC 9985 covers various support services, but the exact classification depends on the nature of the labour or service supplied. For example, employment and labour supply services have specific classifications within the SAC system.
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HSN Code & GST Rate List for Labour Charges
Showing 13 of 13 HS codes| HSN Code | Description | HS Code | Description | GST% |
|---|---|---|---|---|
| 9985 | Support services, which cover manpower supply and labour charges of every kind. This heading takes in recruitment and placement services, contract and temporary staffing, payroll services, job work and processing, pure labour contracts, warehousing and fumigation work, housekeeping services and general business support. Rates shown are the updated ones applicable from 22 September 2025. | 998511 | Executive or retained personnel search services. Input tax credit is allowed. | 18% |
| 998512 | Permanent placement services for non-executive staff. Input tax credit is allowed. | 18% | ||
| 998513 | Contract staffing services. Input tax credit is allowed. | 18% | ||
| 998514 | Temporary staffing services. Input tax credit is allowed. | 18% | ||
| 998515 | Long-term staffing, also called payroll services. Input tax credit is restricted when billed at the 5% rate. | 5% or 18% | ||
| 998516 | Staffing to permanent placement services. Input tax credit is allowed. | 18% | ||
| 998517 | Co-employment staffing services. Input tax credit is allowed. | 18% | ||
| 998518 / 998519 | Other employment services and labour supply services. Input tax credit is allowed. | 18% | ||
| 9985 – Job Work | Job work and processing services for manufacturing. Input tax credit is allowed at the 18% rate and restricted at the 5% rate. | 5% or 18% | ||
| 9985 – Pure Labour | Pure labour services supplied for construction under PMAY and other notified government schemes. No GST is charged. | 0% (Exempt) | ||
| 9985 – Warehousing / Fumigation / Agri | Agricultural and food warehousing services along with fumigation services. No GST is charged. | Exempt | ||
| 9985 – Housekeeping | Basic housekeeping work such as plumbing and carpentry supplied by small suppliers through e-commerce platforms. Input tax credit is not available. | 5% | ||
| 9985 – Other Support Services | General business support services. Input tax credit is allowed. | 18% |
Disclaimer: The GST rates and HSN codes listed above are compiled from the latest CBIC notifications and NIC's GST e-Invoice system master codes, to the best of our knowledge. Rates are subject to change based on the Government of India and GST Council updates. RegisterKaro is not liable for any discrepancies or decisions made based on this information. For the most accurate and updated "16th October 2020" of GST and cess rates, please visit the official CBIC website. Need help with GST registration or filing? Talk to a RegisterKaro expert.
Related HSN Code Pages
Frequently Asked Questions
Everything you need to know about the HSN code and GST rate for Labour Charges.
For job work services, the relevant classification is generally SAC 9988, rather than an HSN code for goods. Heading 9988 covers manufacturing services on physical inputs (goods) owned by others. The exact classification and GST rate depend on the type of job work being performed. CBIC also confirms that job work is treated as a service under GST.
