GST Rates & Registration for IT with SAC Codes

1 for Goods and Services is decided by the GST Council in India. GST rate for IT services is based on the SAC code, a services classification system devised by the service tax department in India. All services supplied in India are taxed under the five slabs of 0%, 5%, 12%, 18% and 28%. On the other hand, goods are taxed based on HSN code, a goods classification system internationally adopted by over 200 countries in the course of import and export. Goods are taxed under seven slabs namely, 0%, 0.25%, 3%, 5%, 12%, 18% and 28%. In this article, we look at the GST rate for IT services in detail.

GST Registration for IT Service Providers

GST registration would be required for most IT service providers as they could be involved in providing an inter-state supply of services or OIDAR services. Under GST Act, GST registration is mandatory for any person who provides taxable services of more than Rs.20 lakhs per annum (In all states, except for the Special Category States) or involved in inter-state supply of goods and/or services or providing OIDAR services or online services. (Know more about

GST Registration

in India).

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to read on HSN Code and GST Rate for Medicines and Pharmaceuticals

SAC Code for IT Service Providers

The services provided by IT service providers could fall under various headings of the SAC code. The following are some of the relevant headings under SAC code for IT service providers:

Information Technology Services

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

Internet Telecommunications Services

SAC Code 998431 - On-line text-based information such as online books, newspapers, periodicals, directories etc SAC Code 998432 - On-line audio content SAC Code 998433 - Online video content SAC Code 998434 - Software downloads SAC Code 998439 - Other on-line contents

Maintenance, Repair and Installation Services

SAC Code 998712 - Maintenance and repair services of office and accounting machinery SAC Code 998713 - Maintenance and repair services of computers and peripheral equipment SAC Code 998716 - Maintenance and repair services of telecommunication equipment and apparatus SAC Code 998733 - Installation services of office and accounting machinery and computers SAC Code 998734 - Installation services of radio, television and communications equipment and apparatus.

Other Types of IT Services

SAC Code 998144 - Research and development originals in computer-related sciences SAC Code 998593 - Telephone-based support services SAC Code 998598 - Other information services n.e.c.

GST Rate for IT Service Providers

IT services attract 18% GST under the default GST rate for services. Know more about GST through the

IndiaFilings GST Portal

or file GST returns using LEDGERS

GST Accounting Software

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Frequently Asked Questions

Common questions about GST Rates & Registration for IT Services in India.

A SAC code, or Services Accounting Code, is a classification system devised by the service tax department in India to categorize various services for taxation purposes under GST. Every service provided in India is assigned a unique SAC code, which determines the applicable GST rate.

GST registration is mandatory for IT service providers if their annual taxable turnover exceeds Rs. 20 lakhs (except for special category states), or if they are involved in inter-state supply of services, or if they provide Online Information and Database Access or Retrieval (OIDAR) services.

The default GST rate for IT services in India is 18%. This rate applies to most IT services, including consulting, software development, hosting, infrastructure management, and other related services.

Unlike services, which have five GST rate slabs (0%, 5%, 12%, 18%, and 28%), goods are taxed under seven slabs (0%, 0.25%, 3%, 5%, 12%, 18%, and 28%) based on their HSN (Harmonized System of Nomenclature) codes.

Yes, IT services can fall under various SAC code headings, depending on the nature of the service provided. The article lists several relevant SAC codes for services such as management consulting, business consulting, IT consulting, software development, hosting, infrastructure management, and more.

Yes, the article mentions SAC codes for internet telecommunications services, including online text, audio, video content, software downloads, and other online content, under the range of 998431 to 998439.

The article lists SAC codes 998712 for maintenance and repair of office and accounting machinery, 998713 for maintenance and repair of computers and peripherals, 998716 for maintenance and repair of telecommunication equipment, 998733 for installation of office and accounting machinery and computers, and 998734 for installation of radio, television, and communications equipment.

Yes, the article mentions SAC code 998144 for research and development originals in computer-related sciences.

According to the article, the SAC code for telephone-based support services is 998593.

Yes, the article lists SAC code 998598 for other information services not elsewhere classified (n.e.c.), which could potentially cover various types of IT services not specifically mentioned under other SAC codes.