GST Rate on Software license
The GST rate on software license is 18%, under SAC code 997331 (licensing for software use, subscription). Here is the full breakdown, a worked example, and related rates in Services.
GST rate breakdown for software license
- GST rate: 18%
- Intra-state: 9% CGST + 9% SGST
- Inter-state: 18% IGST
- SAC code on the invoice: 997331
- Also covers: subscription license, saas subscription
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 license
- 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 license
What is the GST rate on software license?
The GST rate on software license is 18%. Intra-state it is 9% CGST + 9% SGST; inter-state it is 18% IGST. Software license falls under SAC code 997331.
What is the HSN code for software license?
Software license falls under SAC code 997331, which covers licensing for software use, subscription. Show this code on every GST tax invoice line for software license.