Explore GST rates & SAC codes for cleaning services in India. Stay tax-compliant with accurate billing & classification of cleaning activities.
Navigating the tax landscape for cleaning services in India requires a clear understanding of both the SAC (Services Accounting Code) and the applicable GST (Goods and Services Tax) rates. The SAC code is a uniform system for classifying services under the GST regime, ensuring that tax rates are applied consistently across similar types of services. For businesses and service providers within the cleaning industry, identifying the correct SAC code is crucial for tax compliance and accurate billing.
We will explore the various SAC codes assigned to different cleaning activities, whether they pertain to residential, commercial, or specialized cleaning services. Additionally, we’ll delve into the specific GST rates applicable to these services, detailing how these taxes affect pricing and what it means for both providers and consumers.
GST Rate for Cleaning Services
Below is the GST rate classification for various cleaning services:
| Cleaning Service Category | GST Rate | Exceptions and Notes |
| Disinfecting and Exterminating Services | 18% | – |
| Window Cleaning Services | 18% | – |
| General Cleaning Services | 18% | – |
| Specialized Cleaning Services for Reservoirs and Tanks | 18% | – |
| Sterilisation of Objects or Premises | 18% | – |
| Furnace and Chimney Cleaning Services | 18% | – |
| Exterior Cleaning of Buildings | 18% | – |
| Cleaning of Transportation Equipment | 18% | – |
| Waste Collection, Disposal, and Treatment Services | 18% | – |
| Other Cleaning Services | 18% | – |
| Specialized Cleaning Services (e.g., Oil Rigs, Offshore Installations) | 5% | Certain specialised cleaning services attract a lower 5% GST rate. |
| Turnover Threshold (Annual turnover below Rs. 20 lakhs) | 5% | Businesses with an annual turnover below Rs. 20 lakhs are subject to a 5% GST rate for cleaning services. |
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SAC Code for Cleaning Services
Below is the GST rate classification for various cleaning services including SAC code:
| SAC Code | Description of Services | GST Rate |
| 998531 | Disinfecting and exterminating services | 18% |
| 998532 | Window cleaning services | 18% |
| 998533 | General cleaning services | 18% |
| 998534 | Specialised cleaning services for reservoirs and tanks | 18% |
| 998535 | Sterilisation of objects or premises (operating rooms) | 18% |
| 998536 | Furnace and chimney cleaning services | 18% |
| 999412 | Septic tank emptying and cleaning services | 12% |
| 999421 | Collection services of hazardous waste | 12% |
| 999459 | Other sanitation services n.e.c. | 18% |
| 999811 | Housekeeping services | 18% |
| 999814 | Gardening services | 18% |
| Sewerage, Sewage Treatment, and Septic Tank Cleaning Services | SAC Code |
| Sewerage and Sewage Treatment Services | 999411 |
| Septic Tank Emptying and Cleaning Services | 999412 |
| Waste Collection Services | SAC Code |
| Collection Services of Hazardous Waste | 999421 |
| Collection Services of Non-hazardous Recyclable Materials | 999422 |
| General Waste Collection Services, Residential | 999423 |
| General Waste Collection Services | 999424 |
| Waste Treatment and Disposal Services | SAC Code |
| Waste Preparation, Consolidation, and Storage Services | 999431 |
| Hazardous Waste Treatment and Disposal Services | 999432 |
| Non-hazardous Waste Treatment and Disposal Services | 999433 |
| Remediation Services | SAC Code |
| Site Remediation and Clean-up Services | 999441 |
| Containment, Control, and Monitoring Services and Other Site Remediation Services | 999442 |
| Building Remediation Services | 999443 |
| Other Remediation Services | 999449 |
| Sanitation and Similar Services | SAC Code |
| Sweeping and Snow Removal Services | 999451 |
| Other Sanitation Services n.e.c. | 999459 |
Also Read: GST Rates in India
| Cleaning Services | SAC Code |
| Disinfecting and Exterminating Services | 998531 |
| Window Cleaning Services | 998532 |
| General Cleaning Services | 998533 |
| Specialized Cleaning Services for Reservoirs and Tanks | 998534 |
| Sterilisation of Objects or Premises (Operating Rooms) | 998535 |
| Furnace and Chimney Cleaning Services | 998536 |
| Exterior Cleaning of Buildings of All Types | 998537 |
| Cleaning of Transportation Equipment | 998538 |
| Other Cleaning Services | 998539 |
Compliance Requirements for Cleaning Services under GST
For cleaning services operating under the GST regime in India, strict compliance is crucial. Businesses must maintain accurate documentation, including GST invoices that clearly specify the SAC code, description of the service, amount billed, and the GST charged. This documentation should be retained for a minimum period as stipulated by the GST laws to facilitate audits and compliance checks.
Billing practices must also adhere to GST guidelines, with invoices issued timely and inclusive of all necessary details as per the GST invoice format. It is essential for service providers to regularly update their accounting software and training to keep up with any changes in GST regulations.
Failing to comply with GST regulations can lead to severe penalties, including fines and legal actions. Non-compliance such as delayed filings, incorrect invoicing, or underpayment of taxes due can trigger audits and penalties, emphasizing the importance of meticulous adherence to GST norms for cleaning services.
Conclusion
In conclusion, understanding the SAC codes and GST rates for cleaning services is vital for ensuring compliance and accurate financial management within the industry. By familiarizing themselves with the specific SAC codes that apply to various cleaning services, businesses can ensure accurate tax categorization and streamline their billing processes.
Additionally, a clear grasp of the GST rates helps in setting transparent pricing strategies, which benefits both service providers and consumers. Adherence to these regulations not only aids in avoiding penalties but also enhances business credibility and trustworthiness. Ultimately, this knowledge empowers businesses to navigate the complexities of the tax system effectively, promoting a more organized and compliant cleaning services sector in India.
FAQs
Is there GST on cleaning services?
Yes, GST is applicable to most cleaning services in India at a rate of 18%. However, certain specialised services or businesses with lower turnovers may be subject to a lower 5% GST rate.
Who is responsible for paying GST on cleaning services?
The service provider (the cleaning company or individual) is responsible for collecting GST from the customer and paying it to the government.
How can I register for GST if I am a cleaning service provider?
You can register for GST online through the Goods and Services Tax Network (GSTN) portal. The process involves providing your business details, PAN, and other relevant information.
What are the benefits of registering for GST if I am a cleaning service provider?
Registering for GST offers several benefits, including: Input tax credit: You can claim credit for the GST paid on your inputs (materials and services), which reduces your overall tax liability. Enhanced credibility: GST registration can improve your business's credibility and image in the market. Access to larger clients: Many large businesses and organisations prefer to work with GST-registered vendors. Compliance with regulations: It ensures you are compliant with tax laws and avoid potential penalties.
