SAC Code – Website and Software Development

HSN Code or SAC Code has to be stated in all tax invoices that are raised by the goods and services provider. SAC code or Services Accounting Code is applied to services and was initiated by the Service Tax Department afterward followed by GST.

This article furnishes the detailed information about the code and GST rate applied to website and software development.

SAC Code – Development of Website and Software

Group 99831 of SAC code includes the website and software development involving management consulting and information technology services or management services. SAC Code of 998314 includes the IT (Information Technology) design containing the website and software development.

The GST Rate applied to website and software development – 18%.

Group 99831 Management consulting/Services; Information technology services
998311 Services including financial, human resource, strategic, operations, marketing and supply chain management.
998312 Business consulting services – Public relations services
998313 IT (Information Technology) consulting and support services
998314 IT design and development services
998315 Hosting and IT infrastructure provisioning services
998316 Network management and IT infrastructure
998319 Other IT services

Technology Consulting Services – SAC Code

SAC Code 998313 is used by the social media marketing agencies, freelancers, digital marketing agencies and SEO agencies for the purpose of billing consulting and services when only technology consulting services are provided and development or design of software is not included.

The GST Rate applied to technology services – 18%.

HSN Code – Software

If the process of software development is rendered and accomplished as a service or as the SAAS model, then Software development is treated as a Service. Selling the software after completion of the software development by the developer and making it available in CD/DVD/ USB medium, then the sale would be considered as the supply of goods. In this case, SAC Code is not applicable and the tax invoice must include the HSN code.

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