SAC code
SAC code for software development: 998314
Software 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
- Custom software built to a client's specification.
- Back-end systems, APIs and integrations.
- Feature work on a client's product, billed by the hour, the sprint or the milestone.
When it is a different code
On an export invoice
An example: Northwind Labs Inc., a client in United States, is billed in USD on 15 October 2026 under an LUT.
| Description | SAC | Quantity | Rate | Amount |
|---|---|---|---|---|
| Development of order-tracking API, October sprint | 998314 | 120 hours | $45.00 | $5,400.00 |
| IGST at 0%, export under LUT | $0.00 | |||
| Total | $5,400.00 |
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 | Northwind Labs Inc., United States |
| Service and SAC | Development of order-tracking API, October sprint · 998314 |
| Currency and value | $5,400.00 |
| 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
- Selling licences or subscriptions to your own software product is a different supply from building software to order, and its classification can differ. Check it with your CA before you use 998314 for it.
- A development retainer stays under 998314 for as long as the work is building or changing software.
- 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 software development?
- 998314: Information technology (IT) design and development services. It sits under heading 9983, other professional, technical and business services.
- Is GST charged on software 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 the SAC code the same for websites and mobile apps?
- Yes. Website, web app and mobile app development all fall under 998314. See web development and mobile app development.
- What is the difference between 998313 and 998314?
- 998314 is for designing and building software; 998313 is for IT consulting and support. If you advise, it is 998313; if you build, 998314.
Related
- SAC code for IT consulting and support998313: Information technology (IT) consulting and support services
- SAC code for web hosting and cloud infrastructure998315: Hosting and information technology (IT) infrastructure provisioning services
- SAC code for website design and development998314: Information technology (IT) design and development services
- SAC code for mobile app 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.