Services (SAC) 18% GST Updated 21 Apr 2026

SAC Code 9982
Legal Services

SAC 9982 covers legal services provided by advocates and law firms. Under reverse-charge mechanism (RCM): client pays 18% GST, not the lawyer.

SAC Code

9982

GST Rate

18%

Preferred UQC

NOS

Rate details & exceptions

Reverse Charge Mechanism. Legal services provided by individual advocates or law firms to any business entity fall under RCM — the business entity client pays 18% IGST/CGST+SGST directly to government, the lawyer does not collect GST. Legal services to individual consumers (not businesses) → lawyer charges forward at 18%.

What SAC 9982 covers

SAC 9982 applies to the following products and variants. If your item isn't in the list, consult a CA or search the CBIC HSN master for the exact sub-heading.

  • Advocacy / representation in court
  • Legal drafting (contracts, MoAs, agreements)
  • Legal advisory & opinion
  • Arbitration services
  • Company law compliance (ROC filings via advocate)
  • Tax litigation representation

How to enter SAC 9982 on an invoice

On a GST-compliant invoice, add the following for each line item:

  • SAC code: 9982
  • Description: Legal Services (or your specific SKU name)
  • UQC: NOS
  • Quantity, rate per unit, taxable value
  • GST rate: 18% (split as CGST + SGST for intra-state, or IGST for inter-state)

21bill auto-fills SAC 9982 and the 18% rate the moment you type "legal services" in the item description — so you don't memorise codes.

Questions people ask about SAC 9982

Does my lawyer charge GST on their invoice?

If you are a business entity (registered or unregistered), the lawyer does NOT add GST to their invoice. You pay 18% GST directly to government under RCM when filing GSTR-3B. If you are an individual consumer using a lawyer for personal matters (not for business), the lawyer adds 18% to the invoice normally.

Can I claim ITC on legal fees under RCM?

Yes. When you pay 18% on a lawyer's bill under RCM, you get full ITC for that 18% (assuming the legal service is for business purposes). Net effect: zero cash tax out-of-pocket, but you must record it correctly in GSTR-3B. Record the purchase manually as a standard vendor bill in 21bill; full RCM auto-detection (flagging legal / foreign-vendor / GTA transport as RCM supplies) is on our 2026 roadmap.

Does a law firm need GST registration?

Yes, once annual turnover crosses ₹20L (₹10L special-category states), law firms must register. Even under RCM, registration is required for compliance — the firm needs to report its services and turnover, even if it doesn't collect GST from business clients.

Related codes

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⚠️ This page is a working reference, not tax advice. GST rates and classifications change — confirm with your CA or the latest CBIC notification before filing. Last reviewed 21 April 2026.