GST Rate on Software development
The GST rate on software development is 18%, under SAC code 998313 (it design and development services (custom software, websites)). Here is the full breakdown, a worked example, and related rates in Services.
GST rate breakdown for software development
- GST rate: 18%
- Intra-state: 9% CGST + 9% SGST
- Inter-state: 18% IGST
- SAC code on the invoice: 998313
- Also covers: website design, app development, custom software
Rates reflect the GST 2.0 structure effective 22 September 2025 (slabs 0%, 5%, 18%, 40%). Confirm the current rate on the official GST portal before invoicing.
Worked example: GST on software development
- Taxable value: ₹10,000
- GST (18%): ₹1,800
- Within state: ₹900 CGST + ₹900 SGST
- To another state: ₹1,800 IGST
- Invoice total: ₹11,800
FAQs about GST on software development
What is the GST rate on software development?
The GST rate on software development is 18%. Intra-state it is 9% CGST + 9% SGST; inter-state it is 18% IGST. Software development falls under SAC code 998313.
What is the HSN code for software development?
Software development falls under SAC code 998313, which covers it design and development services (custom software, websites). Show this code on every GST tax invoice line for software development.