Skip to content50% off₹750/user/month ₹1,500
SimpleERP
Start free trialTalk to us
SimpleERP
Sign inStart free trial

SAC codes

SAC code for ERP implementation: 998313

Setting up an ERP, mapping a client's processes and training their team is IT consulting; writing new modules for them is development.

Start free trialTalk to us

In short

ERP implementation, configuration and go-live support use SAC 998313, IT consulting and support services, usually at 18%, with 998314 for custom code. SimpleERP keeps each phase on its own line with its own code.

Illustration of GST tax invoice INV-2026-27-0213 to Ravi Stores with CGST 9% and SGST 9%, round off, a UPI QR code and the amount in words.

The data

SAC 998313 at a glance

ItemValue
6-digit SAC998313 (998314 for custom development)
4-digit group9983: other professional, technical and business services
Chapter 99 headingInformation technology (IT) consulting and support services
Usual GST rate18% (as notified; check the GST portal)
Reverse chargeForward charge for most suppliers: the implementation partner charges GST
ExemptionNo general exemption; an implementation for a client outside India can be a zero-rated export
Who typically bills itERP implementation partners, IT consultants and freelance functional consultants
Codes from the CBIC services classification; rates as notified on the verified date. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.

Sources: CBIC: classification of services (SAC), CBIC: GST rates and notifications. Verified .

Which SAC code goes on an ERP implementation invoice?

Use 998313, information technology (IT) consulting and support services. It sits in group 9983, other professional, technical and business services, under chapter 99 (services). Process study, configuration, data migration, user training and go-live support all fit. Custom modules, reports or integrations you write are 998314, IT design and development, covered on the software development page.

Nexa Business Systems in Chennai, Tamil Nadu, implements an ERP for Lakshmi Steel Furnitures in Coimbatore: the setup and training milestone bills under 998313, and a custom dealer report under 998314.

What GST rate applies to ERP implementation?

ERP implementation is usually taxed at 18%. A ₹2,40,000 implementation milestone for a client in your state carries ₹21,600 CGST and ₹21,600 SGST; for a client in another state, ₹43,200 IGST. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.

  • Setup, migration, training and support: 998313
  • Custom modules and integrations: 998314
  • Software licences or subscriptions you resell can carry a different code
  • Travel and stay recovered at cost go on their own lines

An ERP implementation invoice line in SimpleERP

Save Implementation, Custom development and Annual support as services with their SAC codes. Each milestone invoice then carries the right code on each line, with the milestone named in the description.

  • SAC 998313 prints on the implementation line, 998314 on development
  • Place of supply picks CGST plus SGST or IGST from the customer's state
  • The HSN/SAC summary for GSTR-1 shows consulting and development apart
  • Receivables ageing shows which milestone invoices are unpaid

Illustration of the keyboard-first invoice editor with a focused line, live tax totals and shortcut hints.

An implementation milestone under SAC 998313 and a custom report under 998314.

When is reverse charge or an exemption involved?

ERP implementation is under forward charge, and there is no general exemption for business clients. The case that comes up is a client outside India: when the export conditions are met, the service can be zero-rated under a letter of undertaking. SimpleERP has a Zero rated tax rate for those lines, and bills in rupees only.

  • Forward charge for clients in India
  • Client abroad: zero-rated, see zero-rated supply
  • No exemption for small or first-time ERP buyers
  • Ongoing support after go-live: same code, its own invoice

Sources

FAQ

Questions, answered

I implement an ERP and also resell its licences. Same SAC code?

No. Your implementation work is 998313. Licences or subscriptions you resell are a separate supply with their own code, which depends on how the software is delivered. Put them on separate lines and confirm the licence code with your CA.

Is data migration consulting or development?

Moving a client's masters and opening balances into the new system is usually part of implementation under 998313. Building a custom migration tool that the client keeps can be development under 998314. Choose by what you deliver.

My client is in another state. Which tax do I charge?

For a registered business client, the place of supply is the client's location, so a consultant in Tamil Nadu billing a client in Telangana charges IGST at 18%. SimpleERP reads the state from the customer's GSTIN and picks IGST.

I work as a freelance functional consultant for an implementation partner. Who do I bill?

You bill the partner who engaged you, under 998313, and they bill the end client. If your turnover is below the registration threshold and you are not otherwise required to register, you bill without GST.

Related

Run your whole business from one simple place.

Seven days free. No card. Your first GST invoice in minutes.

Start free trialTalk to us