GST Calculator & Rules for Software Services

Understanding GST Rules for Indian Software Developers & IT Firms

Software development, custom programming, application maintenance, and website creation are considered supplies of services under GST. The unified tax rate for domestic IT services is fixed at 18%.

SAC Code Breakdown for Software Sector

SAC Code Description GST Rate
998313 Information technology design and development services (custom programming, mobile apps) 18%
998315 Hosting and IT infrastructure provisioning (cloud management, VPS hosting, DB systems) 18%
998311 IT consulting, strategy and architecture services 18%

Frequently Asked Questions

Q: Is GST applicable on SaaS (Software as a Service) subscriptions in India?

Yes. Selling SaaS subscriptions to Indian customers is subject to 18% GST under OIDAR (Online Information Database Access and Retrieval) services category.

Q: What happens if a developer doesn't file an LUT for export?

If an LUT is not filed, the developer must pay 18% IGST on export invoices upfront and then file a refund claim later on the GST portal. Filing an LUT is highly recommended to protect cash flow.

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