SAC code
SAC code for mobile app development: 998314
Mobile app development is classified under SAC 998314, “Information technology (IT) design and development services”. Billed to a client abroad, it is usually an export: zero-rated, and listed on your monthly EDF.
Checked against the rules on 6 October 2026
The code
- SAC code: 998314
- Description: Information technology (IT) design and development services
- Heading: 9983, Other professional, technical and business services
- GST in India: 18% (9% CGST and 9% SGST, or 18% IGST).
- On an export: zero-rated; under an LUT, no IGST on the invoice.
What 998314 covers
- iOS and Android apps built for a client.
- Cross-platform apps, such as Flutter or React Native.
- App updates and new features after launch.
When it is a different code
On an export invoice
An example: Coastline Health Pty Ltd, a client in Australia, is billed in AUD on 15 October 2026 under an LUT.
| Description | SAC | Quantity | Rate | Amount |
|---|---|---|---|---|
| Android and iOS app, milestone 2 of 3 | 998314 | 1 milestone | A$7,500.00 | A$7,500.00 |
| IGST at 0%, export under LUT | A$0.00 | |||
| Total | A$7,500.00 |
The invoice also carries the client's country, your LUT reference and the endorsement “Supply meant for export under letter of undertaking without payment of integrated tax”. The client and figures are made up.
On the monthly EDF
| On the EDF | For this invoice |
|---|---|
| Buyer and country | Coastline Health Pty Ltd, Australia |
| Service and SAC | Android and iOS app, milestone 2 of 3 · 998314 |
| Currency and value | A$7,500.00 |
| Value in rupees | At the exchange rate on the invoice |
Raised in October 2026, it goes on October's EDF, due at your bank by 30 November 2026. The payment has to reach India by 15 July 2027.
Purpose code for the payment
When the client pays, the inward remittance is usually reported under RBI purpose code P0802, software consultancy and implementation. Check it on the FIRC or FIRA you get for the payment.
Worth knowing
- Have the client hold their own app store developer accounts and pay the store fees directly. It keeps your invoice to your own service.
- Milestone billing works well with the EDF: each milestone invoice goes on the EDF for the month it was raised.
- On GST invoices, a business with turnover above ₹5 crore shows all six digits; up to ₹5 crore, at least four on invoices to businesses. The EDF asks for the SAC on every line, so use the full code.
Questions people ask
- What is the SAC code for mobile app development?
- 998314: Information technology (IT) design and development services. It sits under heading 9983, other professional, technical and business services.
- Is GST charged on mobile app development for a foreign client?
- Not when it is an export. If all five conditions are met, the service is zero-rated, and under an LUT the invoice carries no IGST. For a client in India, GST is 18%.
- Is app development for a foreign client an export?
- Yes, when the five conditions are met: you are in India, the client and the place of supply are outside India, you are paid in foreign exchange, and you are not billing your own branch. See the five conditions.
Related
- SAC code for web hosting and cloud infrastructure998315: Hosting and information technology (IT) infrastructure provisioning services
- SAC code for IT consulting and support998313: Information technology (IT) consulting and support services
- SAC code for software development998314: Information technology (IT) design and development services
- SAC code for website design and development998314: Information technology (IT) design and development services
- Export Declaration Form (EDF) for servicesFrom 1 October 2026 every Indian exporter of services, freelancers included, files one EDF a month with their AD bank.
- When is a service an export under GST? The five conditionsA service counts as an export, and is zero-rated, only if all five conditions in section 2(6) of the IGST Act are met.
This page explains the rules in general. It is not tax or legal advice for your business; check anything you act on with your CA.