GST Rates on Services in India 2026: Complete List with SAC Codes

When you raise a GST invoice for a service in India, two things are non-negotiable: the correct GST rate and the correct SAC code. Get either wrong and your client cannot claim Input Tax Credit — and you could face scrutiny from the GST department.

This guide is the most comprehensive reference for service providers in 2026. It covers every major service category across all five GST slabs — Nil, 5%, 12%, 18%, and 28% — along with their SAC codes, special rules for restaurants and hotels, the export vs. exempt distinction, and answers to the most common questions.

1. What Are SAC Codes and How Are Services Taxed Under GST?

India's GST framework taxes goods and services separately. Goods use HSN (Harmonised System of Nomenclature) codes, while services use SAC (Services Accounting Code) codes. SAC codes were developed by the Central Board of Indirect Taxes and Customs (CBIC) and are based on the United Nations' Central Product Classification (UNCPC).

Structure of a SAC Code

SAC codes are typically 6 digits long:

• First 2 digits — always 99 for all services
• Next 2 digits — the service chapter/heading (e.g., 84 for telecom)
• Last 2 digits — the specific sub-heading

The Five GST Rate Slabs for Services

2. Nil-Rated / Exempt Services Nil / Exempt

These services attract 0% GST. The supplier does not collect any tax and generally cannot claim ITC on inputs used for these services. The list below covers the major categories notified by the GST Council.

3. Services Taxed at 5% GST 5%

The 5% slab covers essential services where the government wants to keep the tax burden low — primarily transport, basic food services, and a few other categories.

4. Services Taxed at 12% GST 12%

The 12% slab is a mid-tier bracket that covers business class air travel, certain construction services, and a handful of other categories.

5. Services Taxed at 18% GST 18%

This is by far the largest GST slab for services. If your service does not appear in any other slab, it almost certainly falls here. All B2B professional services, technology, telecommunications, financial services, and most business support services attract 18% GST.

6. Services Taxed at 28% GST 28%

The 28% slab for services is narrow but significant. It is reserved for entertainment, gambling, and luxury services that the government considers non-essential or socially sensitive.

7. Special Cases: Restaurants, Hotels & Online Gaming

Restaurant Services — 5% vs. 18%

Restaurants are one of the most commonly confused areas of GST. The rate depends on the premises and whether liquor is served:

Hotel Accommodation — Rate Based on Room Tariff

GST on hotel stays is determined by the declared tariff per room per night:

Online Gaming (Post-October 2023)

Following the 51st GST Council meeting, a constitutional amendment was made to bring online gaming into a clear tax framework. From 1 October 2023, all online real-money games — whether classified as games of skill or games of chance — attract 28% GST on the full face value of deposits (buy-in amount), not on the net margin or platform fee.

This covers platforms like Dream11, MPL, rummy sites, poker platforms, and fantasy sports apps. The amendment effectively collapsed the earlier distinction between "skill games" (18%) and "chance games" (28%).

8. Exempt vs. Zero-Rated: Critical Distinction for Exporters

Both exempt services and zero-rated services carry 0% GST on the output — but they are legally very different and the difference can mean lakhs of rupees in ITC refunds.

9. How to Find the Right SAC Code for Your Service

Finding the correct SAC code is a 3-step process:

1. Start broad: Identify which major section your service falls under (IT, healthcare, transport, professional, etc.)
2. Check the CBIC classification: Visit cbic-gst.gov.in or gst.gov.in and navigate to the Services Classification scheme under Notification No. 11/2017 Central Tax (Rate)
3. Narrow to the sub-heading: Match your specific service description to the closest 6-digit SAC

Quick Reference: Common SAC Chapters

10. Frequently Asked Questions

Do small businesses need SAC codes on invoices?

Yes. Any GST-registered business providing services must mention the SAC code on every tax invoice. Businesses with annual turnover below ₹5 crore may use only the 4-digit chapter heading (e.g., 9983) instead of the full 6-digit code, but it is best practice to use the full code. Unregistered businesses do not issue GST invoices and do not need SAC codes.

What if I provide multiple services with different GST rates?

You must invoice each service separately with its own SAC code and GST rate. You cannot average them or lump them together. For example, if you provide IT services (18%) and transportation (5%) to the same client, they must appear as separate line items on the invoice, each with the correct rate. Mixing rates on a single line item is non-compliant.

What is the GST rate on IT and software services in India?

All IT services — software development, web design, app development, IT infrastructure management, cloud services, data processing, and IT support — attract 18% GST. The primary SAC codes are 998314 (software development), 998313 (IT infrastructure), and 998316 (hosting and cloud). This applies to both domestic clients and inter-state services within India.

Are healthcare and medical services exempt from GST?

Yes. Healthcare services provided by a clinical establishment, an authorised medical practitioner, or a paramedic are fully exempt from GST (Nil rated). This covers hospitals, clinics, nursing homes, diagnostic centres, ambulance services, and veterinary care. However, cosmetic procedures and plastic surgery for aesthetic purposes are generally taxable at 18% unless the procedure is medically necessary.

What is the difference between exempt services and zero-rated services?

Both carry 0% GST on output, but they differ fundamentally in ITC treatment. Exempt services (e.g., healthcare, basic education) deny the supplier any ITC on inputs. Zero-rated services (exports, SEZ supplies) allow the supplier to claim a full refund of ITC paid on inputs used to provide those services. This makes zero-rated treatment far more financially beneficial for service exporters. See Section 8 above for the full comparison.

What GST rate applies to restaurant services in India in 2026?

It depends on the establishment: 5% GST (no ITC) for non-AC restaurants and those without a liquor licence; 18% GST (with ITC) for restaurants in AC premises, restaurants serving liquor, and restaurants inside hotels with room tariff above ₹7,500/night. Food ordered via Swiggy/Zomato is taxed at 5% collected by the aggregator regardless of the restaurant type.

Is GST charged on rent for a commercial property?

Yes. Renting of commercial immovable property (offices, shops, warehouses, industrial buildings) attracts 18% GST under SAC code 997212. However, renting of residential property to a registered GST person for their personal use is exempt. Renting of residential property by a registered person for commercial purposes was made taxable under RCM (Reverse Charge Mechanism) from July 2022 onwards.