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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