SAC Codes for Software and IT Services: How to Classify Correctly
Find the right Services Accounting Code (SAC) for software consulting, SaaS, tech support, and website design to avoid audit errors.
Classifying Software Services
Under GST, software services are classified under SAC Code 998313 (Information technology consulting and support services) or 998314 (Internet website hosting services). Mismatches on invoices can lead to queries from tax departments and delays in refund processing.
Why Correct Classification Matters
If you mistakenly declare software consultancy under a hardware code or different service code, your client may face credit matching issues, and tax authorities may inspect the supply place rules applicable to that specific category.
CA Amit Sharma
Verified Advisory LeadAmit is a Chartered Accountant (ICAI membership #409214) and FEMA compliance advisor with over 8 years of experience advising technology startups, digital marketing agencies, and remote professionals on zero-rated GST exports, DTAA declarations, and RBI inward remittance audits.
Disclaimer: The information provided above is for educational purposes only and does not constitute formal legal or financial advice. Please verify details using official circulars issued by the Central Board of Indirect Taxes & Customs (CBIC) and RBI.