GST Rate on Software Development Services: 18%

SAC 998314 · 9% CGST + 9% SGST intra-state, or 18% IGST interstate.

Software design and development services attract 18% GST under SAC 998314. Exports of software services to foreign clients are zero-rated under LUT — the reason India's IT industry bills most of its revenue without charging GST.

Worked example at 18%

Taxable value: ₹10,000
CGST (9%): ₹900.00
SGST (9%): ₹900.00
Invoice total: ₹11,800.00

Interstate, the same sale shows a single IGST line of ₹1,800.00. Try your own numbers in the GST calculator.

Classification

Software Development Services is a service classified under SAC 998314 — see the full classification page for the official description, parent and related codes, and digit-length rules. Rates follow GST Council notifications and can change; the rate shown here is the one typically associated with this classification.

Also at 18% GST

Accounting & Bookkeeping SAC 998222 Advertising Services SAC 998361 Biscuits HSN 190531 Ceramic & Vitrified Tiles HSN 690721 Chocolate HSN 1806 Commercial Rent SAC 997212 Cosmetics HSN 330499 Courier Services SAC 996811

Frequently asked questions

Qualifying exports (foreign recipient, payment in convertible forex) are zero-rated: file a Letter of Undertaking and invoice without tax, or pay IGST and claim refund.

For a sale within one state, the 18% splits equally into 9% CGST and 9% SGST. For an interstate sale it is charged as a single 18% IGST — the total tax is the same either way.

SAC code 998314. The code appears on every invoice line and flows into the GSTR-1 summary.

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