GST on AMC Services: SAC Code, Rate and When to Invoice

Short answer: an annual maintenance contract (AMC) is a maintenance and repair service under SAC group 9987 (for example 998713 for computers and peripherals), taxed at 18% in most cases. A comprehensive AMC that includes parts is usually one composite supply taxed as the service. GST is due on the invoice for each period, or on any advance received earlier.

This guide explains the general GST rules as published by CBIC. Rates, thresholds and notifications change; confirm your own case with your CA before relying on it.

SAC code and rate

• SAC 9987 — maintenance, repair and installation services (except construction).
• Pick the specific six-digit code for what you maintain, e.g. computers and peripherals, electrical equipment or other machinery.
• 18% is the rate for most maintenance services. Check the schedule for anything unusual.

Comprehensive vs non-comprehensive AMC

A non-comprehensive AMC covers labour; parts are billed separately at their own rates. A comprehensive AMC includes parts for one price; since the service is the main supply, the whole is generally taxed as the service.

When to invoice

• Billed upfront for the year: invoice at the start; tax is due then.
• Billed monthly or quarterly: an AMC is a continuous supply of services, so issue the invoice on or before each due date.
• Advance received before invoicing: GST is due on the advance; issue a receipt voucher.

Place of supply

For services on goods, the place of supply is generally where the service is performed — which decides CGST + SGST or IGST.

How Grovia handles AMCs

• AMC contracts with their visits counted, preventive maintenance schedules and renewal dates.
• Support tickets that inherit the contract's response and resolution times.
• AMC invoices on schedule, with SAC codes on the lines, plus receipt vouchers for advances.

Grovia is one platform for service businesses — leads, quotations, GST invoicing, accounts, projects, HR and support. Start a free 14-day trial (no card needed).

Frequently Asked Questions

What is the GST rate on AMC?

18% for most maintenance and repair services under SAC 9987.

What is the SAC code for AMC of computers?

998713, maintenance and repair of computers and peripheral equipment, within group 9987.

Is GST different for a comprehensive AMC with parts?

It is usually treated as one composite supply taxed as the maintenance service.

When is GST payable on an annual AMC paid in advance?

On receipt of the advance or the invoice, whichever comes first.