Software HSN Code (SAC 9983) and GST Rate
Software development, IT design, hosting, SaaS and software licences.
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- SAC code
- 9983
- GST rate
- 18%
- Chapter
- 99: Services (SAC)
- Before 22 Sep 2025
- No change
What is the SAC code for software?
Software falls under SAC 9983.
Custom software and app development is SAC 998314, hosting 998315 and licences to use software 997331, all at 18%. Packaged software on a pen drive or disc can be goods of 852380, also at 18%. Most software export invoices are zero rated under a letter of undertaking.
| Code | Description |
|---|---|
| 998314 | Information technology design and development services |
| 998315 | Hosting and IT infrastructure provisioning |
| 998316 | IT infrastructure and network management |
| 997331 | Licensing services for the right to use computer software |
| 852380 | Packaged software on media (goods) |
GST rate on software
The GST rate on software is 18%. 18% on software development, licences, SaaS and packaged software. Exports of software services are zero rated if the export conditions are met.
| GST rate | Within a state | Between states |
|---|---|---|
| 18% | CGST 9% + SGST 9% | IGST 18% |
Compare other goods on the GST rates list.
Which SAC digits to write on your invoice
The number of digits depends on your aggregate turnover in the previous financial year.
| Turnover last year | Digits | Write |
|---|---|---|
| Up to Rs 5 crore | 4 on B2B invoices, optional on B2C | 9983 |
| Above Rs 5 crore | 6 on every invoice | 998314, 998315, 998316 |
Sample GST invoice line for software
Here is how a line for software looks on a tax invoice within one state: 1 × project milestone at Rs 1,50,000.00 each, taxed at 18%. The figures are an example, not a market price.
| Item | SAC | Qty | Rate (Rs) | Taxable (Rs) | CGST (Rs) | SGST (Rs) | Total (Rs) |
|---|---|---|---|---|---|---|---|
| Software | 9983 | 1 × project milestone | 1,50,000.00 | 1,50,000.00 | 13,500.00 | 13,500.00 | 1,77,000.00 |
Sold to a buyer in another state, the same line carries IGST of Rs 27,000.00 instead of CGST and SGST. Make the full invoice with the GST invoice format: it fills in the tax split, round off and amount in words.
Chapter 99 at a glance
Chapter 99 (Services (SAC)) covers: Services under GST, coded with a Services Accounting Code (SAC) that starts with 99.
Other pages in chapter 99
- Works ContractSAC 9954 · 18%
- RestaurantSAC 9963 · 5%
- Hotel AccommodationSAC 9963 · 5% or 18%
- TransportationSAC 9964 and 9965 · 5% or 18%
- Taxi and CabSAC 9964 · 5% or 18%
- Air TicketSAC 9964 · 5% or 18%
- FreightSAC 9965 · 5% or 18%
- CourierSAC 9968 · 18%
- InsuranceSAC 9971 · Exempt or 18%
- RentSAC 9972 · Exempt or 18%
- Legal ServicesSAC 9982 · 18%
- Manpower SupplySAC 9985 · 18%
Related HSN codes
Products often bought, sold or invoiced together with software:
Частые вопросы
What is the HSN or SAC code for software?
Software falls under SAC 9983: software development, IT design, hosting, SaaS and software licences. Common 6 digit codes are 998314 for information technology design and development services and 998315 for hosting and IT infrastructure provisioning.
What is the GST rate on software?
18% on software development, licences, SaaS and packaged software. Exports of software services are zero rated if the export conditions are met.
How many digits of the software SAC code go on a GST invoice?
If your aggregate turnover in the previous financial year was up to Rs 5 crore, write the 4 digit code 9983 on B2B invoices (optional on B2C invoices). Above Rs 5 crore, write 6 digits, such as 998314, on every invoice.
Rates checked on 13 October 2026 against the GST rate notifications in force (GST 2.0 from 22 September 2025). Descriptions are in our own words and are a guide, not a ruling: for a disputed or high value item, check the notification or ask your tax adviser.