SAC Code for Website & Software Development

SAC Code for Website & Software Development

SAC Code for Website & Software Development

Under GST, all tax invoices raised by a supplier of goods or services must contain the respective HSN code or SAC code. SAC Code is applicable for services and stands for Services Accounting Code. SAC code was initially introduced by the Service Tax department and was later adopted under GST as well. In this article, we look at the SAC code and GST rate applicable for website and software development services in India.

SAC Code for Website & Software Development

Website and software development fall under Group 99831 of SAC codes which pertains to management consulting and management services or information technology services. Under this category, website and software development would fall under the category of Information technology (IT) design and development services which has a SAC code of 998314.

Group 99831Management consulting and management services; information technology services.
998311Management consulting and management services including financial, strategic, human resources, marketing, operations and supply chain management.
998312Business consulting services including pubic relations services
998313Information technology (IT) consulting and support services
998314Information technology (IT) design and development services
998315Hosting and information technology (IT) infrastructure provisioning services
998316IT infrastructure and network management services
998319Other information technology services n.e.c

GST Rate for Website & Software Development

The GST rate applicable for website & software development is 18%.

SAC Code for Technology Consulting Services

If no development or design of software is involved and only technology consulting services are rendered, SAC code 998313 can be used. Hence, SAC code 998313 can be used by social media marketing agencies, digital marketing agencies, freelancers and SEO agencies for billing consulting and support services.

In case, the technology service rendered does not fall into any of the above category, then SAC code 998319 can be used.

GST Rate for Technology Consulting Services

The GST rate applicable for technology consulting services is 18%.

HSN Code for Software

Software Classified as Goods under GST
Software Classified as Goods under GST

Software development is a service only if the entire process is completed and provided as a service or under a SAAS model. If after software development, a developer sells the software by making the software available in physical CD or DVD or USB medium, the sale would be classified as a supply of goods.

Under such a circumstance, SAC code will not be applicable, HSN code must be mentioned on the tax invoice.

Know more about classification of software under GST.

Other Related Guides

How GST Works in India How GST Works in India GST acts as a type of value-added tax and a proposed comprehensive indirect tax levy on manufacture, sale, and consumption of ...
Opting In And Out Of Composition Scheme 2020-21 Opting In And Out Of Composition Scheme 2020-21 Due to the impact of Corona Virus, the lives of the people became highly unstable and the Governments...
GST on Affordable Housing GST on Affordable Housing To boost the real estate sector and also taking a step forward towards achieving the housing for all target, recently Gover...
CGST Sixth Amendment Rules-2019 CGST Sixth Amendment Rules-2019 On October 9, 2019, the Government of India (GoI) has notified Sixth Amendment Rules, 2019, which have made some impo...
Deductions And Deposits Of TDS Under GST Deductions And Deposits Of  TDS Under GST Vide notification no. 50/2018 – Central Tax dated 13th October, 2018, the Government has notified 1st Octob...

Post by IndiaFilings is committed to helping entrepreneurs and small business owners start, manage and grow their business with peace of mind at an affordable price. Our aim is to educate the entrepreneur on the legal and regulatory requirements and be a partner throughout the entire business life cycle, offering support to the company at every stage to make sure they are compliant and continually growing.