SAC - 999611 & 999633
Hi, I have a small business and I have a question about my HSN/SAC code. We provide soundtracks and music composition services. We are currently in a project creating a musical composition for a B2B client, making a soundtrack out of it, and the deliverable is a master file that we will transfer copyright for. This includes music composition, audio engineering, and transfer of ownership of the copyright over this music piece. Will my service fall under SAC 9996? And do i need to provide this on my invoice! thank you!
SAC - 999611 & 999633
Is there any other compliance I should be aware of? Our current turnover is under 5 cr so we need to provide only the first four digits on our invoice, correct?
Your service of providing music composition, audio engineering, and transfer of ownership of the copyright over this music piece will fall under SAC code 9996 - Other miscellaneous services.
It is mandatory to provide the SAC code on your invoice to make it easier for the recipient to identify the service.
In addition to SAC code, you also need to mention the GST rate and amount on the invoice.
Since your turnover is under 5 crore, you can use the HSN/SAC code at 4 digit level instead of 6 digit level while issuing invoices.
Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.
Yes, 9996 is correct. Also HSN should be mentioned in the invoice.
yes 4 digit will work for you
If you are transferring copyright then it will be covered under reverse charges as mentioned in the notification 22/2019: https://gstcouncil.gov.in/sites/default/files/All-rate-notification/notfctn-22-2019-cgst-rate-english.pdf
Hence, you need not issue gst inoivce nor charge gst.
Further since you don't have to pay GST you need not mention HSN code.
Hope you find the information helpful, if yes do rate if 5 and provide your valuable feedback for my improvement.
In reference to your query please note that your transaction would fall under RCM under SL 9/9A of Notification No. 13/2017- Central Tax (Rate) as amended from time to time. Subject to this you would be raising a tax invoice and promptly disclose your HSN / SAC code as 9996 as also clearly mentioning that tax is payable under Reverse charge basis by the recipient.
Since your turnover is less than INR 5 Cr., your understanding w.r.t. quoting 4 digits HSN is correct.
Please advise in case of any further clarifications.
Thanks & Regards,
CA Aditya Dhanuka.
SAC 999611,999632, 999633