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

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