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Software Development attracts 18% GST under SAC code 998314. Calculate the exact tax below.
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Software Development is classified under SAC code 998314 for GST purposes. The Services Accounting Code (SAC) is used to classify services under GST. This code must be mentioned on GST invoices when billing for software development.
IT and software development services attract 18% GST since July 2017. This covers custom software, SaaS, and IT outsourcing.
Yes, input tax credit (ITC) is available on software development for registered businesses. If you purchase software development for business purposes, the GST paid (18%) can be claimed as ITC against your output tax liability, subject to conditions under Section 16 of the CGST Act.
Here are example calculations showing GST on software development at 18% for common price points:
| Base Price | GST (18%) | CGST (9%) | SGST (9%) | Total |
|---|---|---|---|---|
| ₹10,000 | ₹1,800 | ₹900 | ₹900 | ₹11,800 |
| ₹50,000 | ₹9,000 | ₹4,500 | ₹4,500 | ₹59,000 |
| ₹1,00,000 | ₹18,000 | ₹9,000 | ₹9,000 | ₹1,18,000 |
| ₹5,00,000 | ₹90,000 | ₹45,000 | ₹45,000 | ₹5,90,000 |
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Other items at 18% GST:
Software Development attracts 18% GST in India under SAC code 998314. For intra-state sales, this is split into 9% CGST and 9% SGST. For inter-state sales, 18% IGST applies.
The SAC code for Software Development is 998314. SAC (Services Accounting Code) is used to classify services under GST. This code should be mentioned on all GST invoices.
To add 18% GST on software development: GST Amount = Base Price × 18/100. Total = Base Price + GST Amount. For example, on ₹50,000: GST = ₹9,000, Total = ₹59,000.
Yes, registered businesses can claim input tax credit on software development purchased for business purposes. The 18% GST paid can be offset against your output GST liability, subject to Section 16 conditions of the CGST Act.
IT and software development services attract 18% GST since July 2017. This covers custom software, SaaS, and IT outsourcing.