When is it mandatory to mention SAC Code on invoices / GST returns — are there turnover-based thresholds or conditions?
1. Yes — the requirement depends on the aggregate turnover of the service provider in the previous financial year.
2. If the turnover exceeds ₹5 crore, then all six digits of the SAC code must be disclosed on invoices and in GST returns (e.g. when filing returns like GSTR-1).
3. If the turnover is up to ₹5 crore, then for B2B transactions a 4-digit prefix of the SAC code may suffice.
4. For B2C transactions (or to unregistered persons) when turnover is below threshold, including SAC may be optional (depending on specific rules).
5. Failure to comply (e.g. omitting SAC where mandatory) may lead to non-compliance risks — wrong classification, audit queries, issues with input tax credit (for recipients) or GST return mismatches.
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