The usual SAC code for custom software development is 998314 — IT design and development services. If your work is advising on technology or supporting systems rather than building them, 998313 (IT consulting and support) is closer; 998319 is the catch-all for other IT services that fit neither. Pick by what the client is actually paying for, put the same code on your GST invoice and in Part 2B of your EDF, and confirm the choice with your CA.
Key takeaways
- 998314: designing and developing software, apps and websites.
- 998313: IT consulting, advisory and support work.
- 998319: other IT services not covered by more specific codes.
- 998315 is for hosting and IT infrastructure — relevant if you run servers or cloud environments for clients.
- The code on your invoice and in EDF Part 2B should match, invoice by invoice.
What SAC codes are and why the digits matter
SAC stands for Services Accounting Code — the six-digit services classification used under GST. Every SAC for services begins with 99. The middle digits narrow the family, and the last digits identify the specific service. For IT work, you are almost always in the 9983 group (professional, technical and business services), then 99831 (management consulting and IT-related services).
On an export invoice, the SAC tells the reader — your CA, a GST officer, your AD bank — what kind of service you supplied. On the EDF, the SAC code column in Part 2B does the same job for each invoice row.
The three main IT codes compared
| SAC | Description | Typical work | Example invoice line |
|---|---|---|---|
| 998313 | IT consulting and support services | Technology advisory, architecture reviews, troubleshooting, support desks for existing systems | "IT advisory — cloud migration assessment, October 2026" |
| 998314 | IT design and development services | Building custom software, mobile apps, web applications, APIs, databases | "Development of inventory management web app — Sprint 7" |
| 998319 | Other information technology services | IT work that doesn't fit the specific codes | "Data migration services — legacy CRM to new platform" (if not better classified elsewhere) |
| 998315 | Hosting and IT infrastructure provisioning | Hosting, managed servers, cloud infrastructure you provide | "Managed hosting — production environment, October 2026" |
The descriptions above are plain-English summaries. Check the official SAC wording with your CA, especially where a contract bundles several kinds of work.
Choosing between them: a practical test
Ask what the client would say they bought.
- "You built us an app." → 998314.
- "You told us what to build and helped us decide." → 998313.
- "You keep our existing system running and fix issues." → often 998313 (support), though some CAs treat ongoing maintenance with new feature work as 998314.
- "You host and run the servers." → 998315.
- "You did something IT-related that none of these describe." → 998319, after checking nothing more specific fits.
Avoid using 998319 as a default just because it feels safe. A vague code invites a question; a precise one answers it.
Mixed contracts and retainers
Many software exporters sell a bundle: a monthly retainer covering development, support and hosting. You have two sensible options.
- Split the invoice into lines, each with its own SAC and amount. This is the clearest approach when the contract prices the elements separately.
- Use the code for the main service when the contract treats everything as one composite supply with a dominant element. Whether a supply is composite is a GST judgement — your CA should make it.
Example: Quillbyte Technologies Pvt Ltd bills a Canadian client CAD 12,000 a month (about ₹7,30,000). The contract prices development at CAD 9,000, support at CAD 2,000 and hosting at CAD 1,000. Quillbyte's invoice shows three lines: 998314, 998313 and 998315. In the EDF, Part 2B has a single row for the invoice (one invoice = one row), with a description such as "Software development, support and hosting" and the SAC field showing the main code or all three, depending on what the bank's format accepts. Ask your bank once how it prefers multi-SAC invoices shown.
How the SAC links to purpose codes and the EDF
SAC is a GST concept. The purpose code is a separate RBI code on the inward remittance — for software, P0802 (software consultancy/implementation) or P0807 (off-site software exports) are common. The two systems don't map one-to-one, but they should tell a consistent story.
| If your SAC is… | Purpose codes often seen | Notes |
|---|---|---|
| 998314 (development) | P0807 or P0802 | Off-site development is commonly P0807 |
| 998313 (consulting/support) | P0802 | Implementation and consultancy |
| 998315 (hosting) | Confirm with bank | Depends on how the bank classifies the service |
Always confirm the purpose code with your bank — our purpose code finder is a starting point, not a final answer.
On the EDF, the SAC sits in Part 2B alongside the invoice number, date, currency, amount, net realisable value and description of services. If you need to look up a code quickly, the SAC code finder searches by keyword.
GST and invoice wording for software exports
The SAC doesn't change your zero-rating. Export of services is a zero-rated supply under Section 16 of the IGST Act when the Section 2(6) conditions are met. If you export under LUT, the invoice should carry: "Supply meant for export under LUT without payment of IGST". Our export invoice generator adds that line and a SAC field automatically.
This is general information, not legal or tax advice.
Frequently asked questions
What is the SAC code for software development services?
998314, which covers IT design and development services such as building custom software, mobile apps and web applications. Confirm with your CA if your contract bundles development with other services.
What is the difference between SAC 998313 and 998314?
998313 is IT consulting and support — advising on technology and supporting existing systems. 998314 is IT design and development — building new software. The deciding question is whether you mainly advise and support, or mainly build.
When should I use SAC 998319?
Use it for IT services that genuinely don't fit a more specific code. It's a residual category, so check 998313, 998314 and 998315 first. Overusing 998319 can make your invoices look imprecise.
Does the SAC code on the EDF have to match my invoice?
It should. Part 2B has a SAC code column for each invoice row, and your bank and GST records are easier to reconcile when the codes agree. If an invoice has several SACs, ask your bank how it wants them shown.
Is the SAC code the same as the purpose code?
No. SAC is a GST services classification; the purpose code is an RBI code attached to the foreign remittance. They should be consistent, but they come from different systems.
Bottom line
For most software exporters, 998314 is the core code, with 998313, 998315 and 998319 covering consulting, hosting and the rest. Find the right one with the SAC code finder, use it consistently on invoices and the EDF, and let your CA settle any bundled contract.
This guide is general information for Indian businesses, not legal or tax advice. Rules and bank processes change — confirm specifics with your AD bank or chartered accountant.