February 25, 2023
Pranjal Gupta

Agriculture Support Services - GST Rates SAC CODE 9986

Agriculture is the backbone of India's economy, and the sector employs more than half of the country's population. The government has been taking several initiatives to support the agriculture sector, including agriculture support services. The implementation of the Goods and Services Tax (GST) has brought a significant change in the taxation system of agriculture support services.

Under the GST regime, agriculture support services fall under the service category with a SAC (Services Accounting Code) code of 9986. Agriculture support services include services such as soil testing, soil conservation, and soil improvement services, among others.

GST Rates for Agriculture Support Services

Under the GST regime, agriculture support services are taxed at a rate of 5%. However, there are some exemptions and exceptions to this rule.

The following agriculture support services are exempt from GST:

  1. Support services to agriculture, hunting, forestry, and fishing such as harvesting, processing, or packing of agricultural produce.
  2. Services provided by the Agricultural Produce Marketing Committee or Board for marketing of agricultural produce.
  3. Services provided by the commission agent for sale or purchase of agricultural produce.

The following agriculture support services are taxed at a rate of 12%:

  1. Services provided by way of renting or leasing of agro machinery or equipment to a farmer for agricultural purposes.

SAC Code for Agriculture Support Services

The SAC code for agriculture support services is 9986. This code is used to classify services under the GST regime. It is essential to know the SAC code of the services you provide to determine the applicable GST rate.


The implementation of the GST has simplified the taxation system for agriculture support services. The GST rates for agriculture support services are reasonable, and there are exemptions and exceptions in place to ensure that the sector is not overburdened with taxes. By knowing the SAC code of the services you provide, you can determine the applicable GST rate and ensure compliance with the GST regulations.


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