HSN SAC Code for Materials Recovery & Recycling Services | 99894

Overview

HSN SAC Code is important for classifying the goods and services for GST compliance, introduced by the Central Board of Indirect Tax and Customs (CBIC). These codes define the nature and functions of various goods or services, which is essential in determining the rate of GST. There are 5 slab rates for GST under SAC, which are Nil, 5%, 12%, 18%, 28%. The length of the SAC code ranges from 4 to 8 digits, depending on the services' classification. The HSN SAC code for Materials Recovery & Recycling Services is 99894, covered under Chapter 99. Learn more about the HSN SAC Code for Materials Recovery & Recycling Services, GST rates (IGST, CSGT, SGST).

What is HSN SAC Code for Materials Recovery & Recycling Services 99894?

SAC HSN Code is vital for goods and services sold in India. Materials Recovery & Recycling Services are covered under 99894 HSN SAC code. The first two digits 99 represent the services chapter, and the next two digits represent the major service category. This numeric code classifies services to determine the applicable GST rates in India. Hence, the HSN SAC code for Materials Recovery & Recycling Services 99894 helps to sort, classify, identify, and determine the applicability of services in India.

HSN Code & GST Rates for Materials Recovery & Recycling Services

Here’s a complete list of HSN SAC codes for Materials Recovery & Recycling Services along with GST rates which comes under under the chapter 99 of 99894. To find more, click on our HSN code finder.

Importance of HSN SAC Code under GST Compliance

• Provide accurate information regarding services: HSN SAC code provides accuracy for many services, including Materials Recovery & Recycling Services (code 99894), helping businesses find correct GST rates.
• Assist in filing GST Returns: Using the right HSN SAC code for services like Materials Recovery & Recycling Services helps businesses file accurate GST returns.
• Accountability and transparency: Using the correct HSN SAC code for Materials Recovery & Recycling Services (99894) fosters transparency and accountability between the government and businesses.

Key Features of HSN SAC Code for Materials Recovery & Recycling Services

• All SAC codes for services like Materials Recovery & Recycling Services begin with the digits ‘99’.
• These digits are further categorized by the nature and characteristics of services.
• These digits provide detailed information about services rendered and related tax liability.
• The length of the HSN SAC code varies according to the total turnover of services rendered by service providers.

GST Rate Associated with HSN SAC Code

Under CBIC guidelines, services associated with HSN SAC codes are taxed under 5 GST slab rates:

• 0%
• 5%
• 12%
• 18%
• 28%

If services are not mentioned or assigned a specific SAC code, an 18% GST will be levied by default.

Disclaimer

To the best of our knowledge, the rates listed above, which are provided, have been revised from the announcement no. 05/2020, dated October 16, 2020. We obtained the HSN code information from the master codes provided on the NIC's GST e-Invoice system. Variations may occur as a result of government upgrades. Please keep in mind that we cannot be held accountable for any incorrect information. If you need information about the "effective date" for each GST or cess rate, please go to the CBIC website.

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Who needs to get HSN SAC Code for Materials Recovery & Recycling Services?

According to Notification Number 78/2020, CT(R), dated 10th November 2020, service providers with an annual aggregate turnover exceeding Rs. 5 crore in the previous year must use a 6-digit HSN SAC code for invoices and GSTR-1. This notification came into effect on April 1, 2021. For registered B2B businesses with annual turnovers under Rs. 5 crore, a 4-digit SAC code is applied. B2C businesses (composition dealers) may opt to use a 4-digit SAC code. For unregistered dealers, selecting an SAC code is not required.

Conclusion

HSN SAC Code is crucial for recognizing services under GST compliance. Many services rendered by businesses in India are associated with HSN SAC codes according to the five GST tax slab rates. Businesses should assess the services they provide to determine the appropriate HSN SAC code.

Frequently Asked Questions