SAC Code 9987
IT Services (software, hosting, support)
SAC 9987 covers information technology services — software development, hosting, maintenance, IT support. Standard GST is 18%.
SAC Code
9987
GST Rate
18%
Preferred UQC
NOS
Rate details & exceptions
Custom software development (9987 31), software maintenance (9987 34), hosting services (9987 32), cloud infra, SaaS subscriptions sold to Indian customers — all 18%. Software products sold as packaged goods (HSN 8523) — also 18% but under goods-HSN rules.
What SAC 9987 covers
SAC 9987 applies to the following products and variants. If your item isn't in the list, consult a CA or search the CBIC HSN master for the exact sub-heading.
- Custom software development
- Software maintenance & support
- Website development & hosting
- Cloud infrastructure (IaaS/PaaS)
- SaaS subscriptions (billed to Indian customers)
- IT consulting (implementation-heavy)
How to enter SAC 9987 on an invoice
On a GST-compliant invoice, add the following for each line item:
- SAC code:
9987 - Description: IT Services (software, hosting, support) (or your specific SKU name)
- UQC:
NOS - Quantity, rate per unit, taxable value
- GST rate: 18% (split as CGST + SGST for intra-state, or IGST for inter-state)
21bill auto-fills SAC 9987 and the 18% rate the moment you type "it services (software, hosting, support)" in the item description — so you don't memorise codes.
Questions people ask about SAC 9987
SAC 9987 vs 9983 — which for software work?
SAC 9987 for hands-on IT work (coding, hosting, deployment, ongoing maintenance). SAC 9983 for advisory/consulting (architecture review, strategy, technical audit) where no artifact is built. Both 18%. Most freelancers use 9987 for development contracts and 9983 for strategy retainers.
Do I charge GST on software exported to a foreign client?
Services exported to foreign clients with payment in forex are zero-rated (no GST charged) if you've filed an LUT (Letter of Undertaking) with the GST department. Without LUT, you pay 18% IGST then claim refund. LUT renewal is annual, every April.
Is SaaS subscription from US provider GST-chargeable?
If you (Indian GST-registered business) subscribe to a foreign SaaS tool, you pay 18% IGST under reverse charge (RCM). You claim it back as ITC if the subscription is for business use. Your accountant should track this. In 21bill, record the foreign SaaS subscription as a standard vendor bill — full RCM auto-detection + auto-offset entries are on our 2026 roadmap.
Any special rate for software for govt / charity?
No blanket exemption. Software sold to government departments or registered charities attracts the standard 18%. Some specific central-government procurement categories have IGST exemption notifications — rare and vertical-specific; consult a CA for eligibility.
Related codes
- 18%
SAC 9983 — Consulting & Professional Services
SAC 9983 covers management, technical, and professional consulting services. Standard GST is 18%. Most freelan…
- 18%
SAC 9982 — Legal Services
SAC 9982 covers legal services provided by advocates and law firms. Under reverse-charge mechanism (RCM): clie…
Related on 21bill
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Request access⚠️ This page is a working reference, not tax advice. GST rates and classifications change — confirm with your CA or the latest CBIC notification before filing. Last reviewed 21 April 2026.