SAC code · 18% GST
SAC code for software and website development
If you build software or websites for clients, your code is 998314— “Information technology design and development services”, taxable at 18%. If you advise, support or maintain rather than build, it is 998313. Almost everything else you will see recommended for web work is wrong.
Which code is yours
| Code | Official description | Use it when |
|---|---|---|
| 998314 | Information Technology Design and Development Services | Custom software development and design — the most common freelance dev SAC |
| 998313 | IT Consulting and Support Services | IT advisory, architecture review and ongoing technical support |
| 998315 | Hosting and IT Infrastructure Provisioning | Server hosting, cloud infrastructure and managed-service provisioning |
| 998319 | Other IT Services (Not Elsewhere Classified) | The residual IT bucket — use only when nothing else fits |
| 998365 | Sale of Internet Advertising Space | Selling ad space on a site or app you own |
| 998391 | Specialty Design Services | Industrial, fashion, graphic and other specialty design |
The 998365 mistake
A great many pages — including, until recently, one of ours — list 998365 as the code for “web page design”. It is not. In the CBIC Scheme of Classification, 998365 is “Sale of internet advertising space”: the code a publisher uses when selling ad inventory on a site they own. Filing your web-development income under it describes a completely different business to the department.
Build a website for a client, and you are on 998314. Sell banner space on your own site, and 998365 is right. Design work that is not software — brand identity, print, interior — is 998391.
“HSN code for website development”
There isn't one, and the search is worth answering plainly because so many people run it. HSN classifies goods; services are classified by SAC. Both live under the same numbering umbrella, and GST portals label the field “HSN/SAC”, which is where the confusion starts. What goes in that field for a developer is 998314.
The rate, and what happens when the client is abroad
18% throughout — CGST 9% + SGST 9% for a client in your own State, IGST 18% for one outside it. A foreign client is an export of service and zero-rated under Section 16 of the IGST Act: file a Letter of Undertaking and you charge no GST at all; skip the LUT and you must pay IGST and reclaim it. Either way the receipts count toward your registration threshold.
Frequently asked
- What is the SAC code for software development?
- 998314 — "Information technology design and development services" in the CBIC Scheme of Classification. It covers custom software, application development, and website and web-application development. GST is 18%.
- What is the SAC code for website development?
- Also 998314. Website development is IT design and development, and it does not have a separate code. It is frequently listed online as 998365, which is wrong — 998365 is "Sale of internet advertising space", the code for a publisher selling ad inventory, not for building anything.
- Is there an HSN code for website development?
- No. HSN codes classify goods; services use SAC codes. "Website development HSN code" is a common search but the answer is a SAC — 998314. The two systems sit under the same eight-digit umbrella, which is why the terms get mixed up.
- What is the difference between 998313 and 998314?
- 998313 is "Information technology consulting and support services" — advising, troubleshooting, maintaining. 998314 is "Information technology design and development services" — building the thing. If you are writing the software, you are on 998314. These two are widely quoted the wrong way round, so check the direction before you file.
- What GST rate applies to software development services?
- 18%, split as CGST 9% + SGST 9% when your client is in your State, or IGST 18% when they are not. Exporting to a foreign client is zero-rated under Section 16 of the IGST Act — with an LUT you charge nothing, without one you pay IGST and claim a refund.
- Does the SAC code have to be on my invoice?
- Only if you are registered. A registered person must show the SAC on a tax invoice (six digits above ₹5 crore turnover, four digits below). If you have no GSTIN you issue a plain invoice with no GST and no SAC on it.
Not registered yet? Check whether you have crossed the threshold — and if you have, HourSlip puts the right SAC on every invoice automatically.