HourSlip
Sign inStart free →Start free

GST · SAC 998314 · FY 2026–27

The SAC code for software and website development

It is 998314 — “information technology design and development services” — at 18% GST, for custom software, applications and websites alike. The codes it gets confused with, and what each actually covers, are below.

18%

Domestic
0% export (LUT)

The code

998314

Heading

9983

Export (LUT)

0%

Reverse charge

No — forward charge

The codes people confuse with it

All of these sit at 18%, so the rate is never the problem — the disclosure is. A wrong SAC in GSTR-1 Table 12 is what triggers ITC queries at the client end.

SACWhat it coversHeadingRate
998314Custom software development and design — the most common freelance dev SAC998318%
998313IT advisory, architecture review and ongoing technical support998318%
998315Server hosting, cloud infrastructure and managed-service provisioning998318%
998319The residual IT bucket — use only when nothing else fits998318%
998365Selling ad space on a site or app you own998318%
998391Industrial, fashion, graphic and other specialty design998318%

⚑ 998365 is “sale of internet advertising space” — not a web-development code, despite what most listicles say

Put 998314 on a real invoiceFree GST invoice generator — SAC prefilled, CGST-SGST vs IGST resolved from the client's state. No signup.

FAQ

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.

Rates as notified for FY 2026–27 and can change. General information, not tax advice. Verify with your CA before you file.

For the CA reading this

The deadline sheet you already send, with your name on it

Every statutory date for the month — GST returns, advance tax, and the dates your client's own customers owe them: when the TDS they withheld must reach the department, and when the certificate is due. Add your firm's name and forward it as it stands. No signup, no email, nothing to accept.

Download the image

The image is the one that travels on WhatsApp. Dates are statutory, not advice — the sheet says which rows bind whom.

The right SAC, the right rate, every invoice

GST that fills itself in.

HourSlip stores your SAC codes, resolves CGST-SGST vs IGST from each client's state, and zero-rates exports automatically.

• No card required• Export your data as CSV