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SAC codes

SAC code for website development: 998314

Building a website is IT design and development, while hosting and domains on the same invoice have codes of their own.

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In short

Website design and development uses SAC 998314, IT design and development services, usually at 18% under forward charge. In SimpleERP the build, hosting and support lines each carry their own SAC code on one invoice.

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 998314 at a glance

ItemValue
6-digit SAC998314 (hosting 998315, support 998313)
4-digit group9983: other professional, technical and business services
Chapter 99 headingInformation technology (IT) design and development services
Usual GST rate18% (as notified; check the GST portal)
Reverse chargeForward charge for most suppliers: the developer charges GST
ExemptionNo general exemption; a website for a client outside India can be a zero-rated export
Who typically bills itWeb studios, freelance developers, digital agencies and IT firms
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 a website development invoice?

Use 998314, information technology (IT) design and development services. It sits in group 9983, other professional, technical and business services, under chapter 99 (services). Design, front-end and back-end build, CMS setup and e-commerce storefront development all fit. Yearly hosting is 998315, hosting and IT infrastructure provisioning, and ongoing support is usually 998313.

Pixel Lane Studio in Bengaluru, Karnataka, building a product catalogue website for Lakshmi Steel Furnitures in Coimbatore, bills the build under 998314 and the first year of hosting as a separate line under 998315.

What GST rate applies to website development?

Website development is usually taxed at 18%. A ₹90,000 build for a client in another state carries ₹16,200 IGST; for a client in your state, ₹8,100 CGST and ₹8,100 SGST. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.

  • Milestone billing: each milestone invoice carries the same code and rate
  • Domain names and hosting you resell are usually separate lines
  • Website for a client abroad: zero-rated under a letter of undertaking when conditions are met
  • Freelancers below the registration threshold do not charge GST

A website development invoice line in SimpleERP

Save Website build, Hosting and Support as three services with their SAC codes. A milestone invoice then has one line per milestone, and the customer's GSTIN decides the tax split.

  • SAC 998314 prints on the build line, 998315 on hosting
  • Place of supply picks CGST plus SGST or IGST from the customer's state
  • The HSN/SAC summary for GSTR-1 shows each code with its taxable value
  • Hours or milestones as the unit, with the milestone named in the description

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

A website build milestone under SAC 998314 and hosting under 998315.

When is reverse charge or an exemption involved?

Website development is under forward charge. The case that comes up is a client outside India: when the service is provided to a client abroad, paid in foreign exchange and the other export conditions are met, it is a zero-rated export, usually billed without tax under a letter of undertaking. SimpleERP has a Zero rated tax rate for those lines, but it does not bill in foreign currency, so the invoice is in rupees.

  • Forward charge for Indian clients
  • Export of service: zero-rated, see LUT
  • No exemption for small business clients in India
  • Custom software beyond a website: see software development

Sources

FAQ

Questions, answered

I build websites and also renew the client's domain every year. Same SAC code?

No. The build is 998314. Hosting is 998315, and a domain you register and resell is often billed with it or under the code your CA advises. Put each on its own line so the HSN/SAC summary shows them apart.

My client is in the US. Do I charge 18% GST on the website?

Usually not, if it qualifies as an export of service: client outside India, payment in foreign exchange and the other conditions. You bill it as zero-rated, often under a letter of undertaking. In SimpleERP the line uses the Zero rated rate and the invoice stays in rupees.

I take 50% advance before I start. When is GST due?

For services, GST is due on the earlier of invoice or receipt of payment, so an advance triggers tax on that amount. Issue a receipt voucher or an advance invoice, then adjust it on the final bill. Ask your CA how to show the adjustment.

Is a website template I sell the same as development?

A ready template downloaded by the buyer is closer to a software licence or online supply than custom development, and it may have a different code. Custom design and build for one client stays under 998314.

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