Service Charge HSN Code 9983: Billing, GST Rate & Examples

What is HSN Code 9983?

HSN Code 9983 falls under “Other Professional, Technical, and Business Services” in India’s GST system. This classification is central to billing and taxation for a broad range of consulting, technical support, and business service charges in sectors such as IT, accounting, legal, research, design, and creative work. The Service Accounting Code (SAC) 9983 ensures unified treatment for diverse professional services, whether provided to individuals, companies, or institutions.

GST Rates & Exemptions for HSN Code 9983

The GST rate for all services under HSN 9983 is 18% as of the latest September 2025 update. This slab applies to consultancy, management, engineering, accounting, legal, marketing, and technical services. Only very limited exemptions apply, such as specific government-notified charitable or educational activities. If a service qualifies for exemption, this must be referenced explicitly in GST documentation.

Table Notes

• All rates below apply from 1st April 2025 and include both CGST and SGST or IGST for inter-state billing.
• Services must be categorized correctly for eligibility; misclassification can lead to compliance issues.
• Examples are based on typical 2025 invoice entries seen across industries.

GST Rates Applicable Under 9983

What’s Included in 9983 Services?

Service charges under HSN/SAC 9983 include all professional, technical, and business services offered by consultants, specialists, and firms. Examples include IT consulting, management advice, audit and accountancy, legal services, marketing planning, design, and all project-based technical services. Charges can be billed hourly, monthly, or as lumpsum based on contract terms.

Explore More Check Gimbooks HSN/SAC code & GST Rate finder

Key Exemptions Under GST for 9983

Most professional and technical services billed under 9983 are not GST exempt. Notable exceptions include certain government-registered charitable or educational services and some government fees (e.g., registration fees by authorities). Exemptions must be explicitly referenced on invoices and backed by proper documentation.

Input Tax Credit (ITC) Rules for Service Charges

Registered businesses can claim ITC on GST paid for service charges under HSN 9983. ITC is available for amounts spent on professional services that contribute directly to business operations. For personal services, ITC is not allowed. Proper GST invoicing and recordkeeping are required for successful ITC claims.

GST on Service Charge Billing: Practical Scenarios

• A marketing agency bills a business client for a campaign strategy under SAC 998315, charging 18% GST and providing GST-compliant invoice for ITC.
• IT consulting firms issue invoices with SAC 998314 for digital transformation projects, enabling corporate clients to claim ITC.
• Freelance designers and specialist consultants use relevant SAC codes and charge 18% GST for services subject to professional regulations.

Common Mistakes in Service Charge GST

• Failure to mention the correct SAC code (HSN 9983) on invoices, risking ITC denial.
• Omitting GST where services are clearly taxable.
• Charging GST on exempt charitable or educational activities.
• Incorrect GST rate selection due to outdated compliance knowledge.
• Poor documentation leading to ITC claim rejection during audit.

Conclusion

HSN Code 9983 provides businesses, professionals, and clients clarity and standardization in GST billing and compliance for all professional, technical, and business services. Staying updated, using correct SAC codes, and maintaining clear documentation ensures smooth GST and ITC processes in 2025.

Related read
Labour Charges HSN Code 9985
Transportation HSN Code 9965

FAQs: HSN Code 9983 & Service GST

What is HSN 9983?

HSN/SAC 9983 refers to “Other Professional, Technical, and Business Services,” including consulting, legal, accounting, marketing, and IT services.

What’s the standard GST rate for 9983?

The standard GST rate for professional and technical services under HSN 9983 is 18% in 2025.

Can ITC be claimed on 9983 services?

Yes, ITC can be claimed on GST paid for service charges under HSN 9983 by registered businesses for eligible business expenses.

Which services are exempt from GST under 9983?

Only specific government-notified charitable and educational activities, or some statutory registration services, may be exempt. Check official notifications for details.