{"id":46029,"date":"2024-02-05T23:48:02","date_gmt":"2024-02-05T18:18:02","guid":{"rendered":"https:\/\/www.techjockey.com\/blog\/?p=46029"},"modified":"2026-01-02T14:44:12","modified_gmt":"2026-01-02T09:14:12","slug":"gst-rate-hsn-code-for-software-and-services","status":"publish","type":"post","link":"https:\/\/www.techjockey.com\/blog\/gst-rate-hsn-code-for-software-and-services","title":{"rendered":"GST Rate &amp; HSN Code for Software and Software Services"},"content":{"rendered":"\n<style>\n.lh-callout, .lh-featured-snippet {\n    border: 1px solid #e9e9ea;\n    border-left: 8px solid #ff492c;\n    border-radius: 20px;\n    margin-bottom: 20px;\n    padding: 35px;\n    position: relative;\n}\n<\/style>\n<div class=\"lh-callout lh-featured-snippet\" class=\"has-background\" style=\"background-color:#FAC7B917\">\n  <p><strong>Summary:<\/strong> Navigating through the taxation system is quite complex, especially in the case of HSN code and GST rate. This article addresses these tax intricacies and mentions different HSN codes available for software services.<\/p>\n<\/div>\n\n\n\n<p>The HSN code for software services serves as a universal language for trade, enabling businesses to navigate the complexities of cross-border software services transactions efficiently. It enhances transparency, simplifies taxation, and ensures that the appropriate duties and tariffs are applied.<\/p>\n\n\n\n<p>Adhering to the HSN coding system contributes to a more organized and harmonized global trade environment for software services. Let&#8217;s find out more about HSN code for software development and the applicable GST rate.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-meant-by-hsn-code-for-software-services\"><span class=\"ez-toc-section\" id=\"what_is_meant_by_hsn_code_for_software_services\"><\/span>What is Meant by HSN Code for Software Services?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>HSN Code is a standardized system for classifying goods and services into various categories. It is used for classifying services for taxation and payment.<\/p>\n\n\n\n<p>HSN Code for software services is used to categorize software-related services. These services are categorized under Group 99831 of SAC codes pertaining to information technology services.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-gst-applicability-on-software-and-software-services\"><span class=\"ez-toc-section\" id=\"gst_applicability_on_software_and_software_services\"><\/span>GST Applicability on Software and Software Services<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>GST is applicable to various software services such as <a href=\"https:\/\/www.techjockey.com\/category\/supply-chain-management-software\">supplying software<\/a> in various formats, supplying them online, exporting services, or <a href=\"https:\/\/www.techjockey.com\/category\/einvoicing-software\">creating e-invoice<\/a>. Here is the detailed breakdown of GST applicability on all the software services and the ones exempted from GST below:<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img decoding=\"async\" width=\"700\" height=\"470\" src=\"https:\/\/cdn.techjockey.com\/blog\/wp-content\/uploads\/2024\/02\/05232749\/GST-Applicability-on-Software-and-Software-Services.jpg\" alt=\"GST Applicability on Software and Software Services\" class=\"wp-image-46032\" srcset=\"https:\/\/cdn.techjockey.com\/blog\/wp-content\/uploads\/2024\/02\/05232749\/GST-Applicability-on-Software-and-Software-Services.jpg 700w, https:\/\/cdn.techjockey.com\/blog\/wp-content\/uploads\/2024\/02\/05232749\/GST-Applicability-on-Software-and-Software-Services-300x201.jpg 300w, https:\/\/cdn.techjockey.com\/blog\/wp-content\/uploads\/2024\/02\/05232749\/GST-Applicability-on-Software-and-Software-Services-260x175.jpg 260w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/figure><\/div>\n\n\n<ul>\n<li><strong>Software Supply in Various Forms:<\/strong> According to Schedule II of the CGST Act, tasks like \u201cdevelopment, design, programming, customization, adaptation, upgradation, enhancement, and implementation of information technology software&#8221; comes under the services supplied, (No. 5 (2)(d) of Schedule \u2013II of the GST law). On the other hand, when the pre-developed software is delivered via any medium, storage, or encryption keys, it will be considered as goods supply falling under 8523 heading.<\/li>\n\n\n\n<li><strong>Online Software Supplies:<\/strong> Providing <a href=\"https:\/\/www.techjockey.com\/\">computer software online<\/a> has a unique classification. Accessing and downloading software with updates is considered as an OIDAR (Online Information Database Access and Retrieval) service. Therefore, any service related to software provision will be headed under an OIDAR service.<\/li>\n\n\n\n<li><strong>Exemptions:<\/strong> Specific software like the one issued by the government is exempt from GST. Moreover, specific types of software have a 0% GST rate depending on the usage and beneficiaries they are serving.<\/li>\n\n\n\n<li><strong>Supply Place:<\/strong> In-state<\/li>\n<\/ul>\n\n\n\n<p><strong>In-State Sales:<\/strong> When both the supplier and receiver are in the same state, then CGST and SGST are applied.<\/p>\n\n\n\n<p><strong>Interstate Sales:<\/strong> When the supplier and receiver are present in different locations, then IGST is applied.<\/p>\n\n\n\n<ul>\n<li><strong>Software Services Import:<\/strong> As the software imported comes under HSN Code 997331, it is considered a service import. Businesses that import software do not need a Bill of Entry. But they need to pay the required IGST on a Reverse Charge Mechanism (RCM) basis, as Notification 10\/2017-IT from June 2017.<\/li>\n\n\n\n<li><strong>Software Services Export:<\/strong> Software exported to Special Economic Zone (SEZ) and developers are 0% rated within GST, implying the tax payment is not necessary. However, exporters could claim input tax credit upon all resources utilized to develop export services.<\/li>\n\n\n\n<li><strong>Invoicing and e-Invoicing:<\/strong> e-Invoicing is compulsory for <a href=\"https:\/\/www.techjockey.com\/blog\/features-of-business-management-software\">business-to-business software<\/a> transactions and firms having a turnover of more than INR 5 crore.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-hsn-code-and-gst-rate-on-software-and-software-services\"><span class=\"ez-toc-section\" id=\"hsn_code_and_gst_rate_on_software_and_software_services\"><\/span>HSN Code and GST Rate on Software and Software Services<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>HSN code for software development services covers plenty of services and each service has a different code and GST rate.<\/p>\n\n\n\n<p>For example, discs with information technology software has 85243111 HSN code and it has a 0% GST rate. Here is the complete list of all software services along with their HSN codes and applicable GST rate.<\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table><tbody><tr><td><strong>HSN Code<\/strong><\/td><td><strong>Description<\/strong><\/td><td><strong>GST Rate<\/strong><\/td><\/tr><tr><td>49119910<\/td><td>hardcopy (printed) of computer software<\/td><td>12%<\/td><\/tr><tr><td>85232990<\/td><td>other for recording sounds<\/td><td>18%<\/td><\/tr><tr><td>85238020<\/td><td>discs with information technology software<\/td><td>18%<\/td><\/tr><tr><td>85238090<\/td><td>other<\/td><td>18%<\/td><\/tr><tr><td>85243111<\/td><td>discs with information technology software<\/td><td>0%<\/td><\/tr><tr><td>85244011<\/td><td>magnetic tapes with IT software<\/td><td>0%<\/td><\/tr><tr><td>85249112<\/td><td>information technology software on disc or on cd rom<\/td><td>0%<\/td><\/tr><tr><td>99831<\/td><td>management consulting and management services; information technology services<\/td><td>18%<\/td><\/tr><tr><td>998311<\/td><td>consultation in management areas: finance, strategy, hr, marketing, operations, and logistics\n                <\/td><td>18%<\/td><\/tr><tr><td>998312<\/td><td>enterprise advisory services, inclusive of pr consultancy<\/td><td>18%<\/td><\/tr><tr><td>998313<\/td><td>IT guidance and maintenance services<\/td><td>18%<\/td><\/tr><tr><td>998314<\/td><td>designing and formulating it solutions<\/td><td>18%<\/td><\/tr><tr><td>998315<\/td><td>services for IT system hosting and infrastructure setup<\/td><td>18%<\/td><\/tr><tr><td>998316<\/td><td>management of IT systems and networking<\/td><td>18%<\/td><\/tr><tr><td>998319<\/td><td>additional it-related services, not elsewhere classified<\/td><td>18%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-input-tax-credit-availability-on-software-services-gst\"><span class=\"ez-toc-section\" id=\"input_tax_credit_availability_on_software_services_gst\"><\/span>Input Tax Credit Availability on Software Services GST<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img decoding=\"async\" width=\"700\" height=\"470\" src=\"https:\/\/cdn.techjockey.com\/blog\/wp-content\/uploads\/2024\/02\/05232757\/Input-Tax-Credit-Availability-on-Software-Services-GST.jpg\" alt=\"Input Tax Credit Availability on Software Services GST\" class=\"wp-image-46034\" srcset=\"https:\/\/cdn.techjockey.com\/blog\/wp-content\/uploads\/2024\/02\/05232757\/Input-Tax-Credit-Availability-on-Software-Services-GST.jpg 700w, https:\/\/cdn.techjockey.com\/blog\/wp-content\/uploads\/2024\/02\/05232757\/Input-Tax-Credit-Availability-on-Software-Services-GST-300x201.jpg 300w, https:\/\/cdn.techjockey.com\/blog\/wp-content\/uploads\/2024\/02\/05232757\/Input-Tax-Credit-Availability-on-Software-Services-GST-260x175.jpg 260w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/figure><\/div>\n\n\n<p>Yes, Input Tax Credit is available on software services GST for businesses who use software for operational activities. However, those using this software for personal use cannot claim Input Tax Credit.<\/p>\n\n\n\n<ul>\n<li><strong>For Businesses:<\/strong> Businesses could claim Income Tax Credit when they are <a href=\"https:\/\/www.techjockey.com\/blog\/free-procurement-software\">buying software for operational activities<\/a> like <a href=\"https:\/\/www.techjockey.com\/blog\/best-graphic-design-software\">graphic designing software for a designing firm<\/a>.<\/li>\n\n\n\n<li><strong>For Consumers:<\/strong> Any person buying software for their personal usage such as <a href=\"https:\/\/www.techjockey.com\/blog\/free-video-editing-software-tools\">video editing software<\/a> or antivirus cannot claim Income Tax Credit because it is not related to any business activity.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-hsn-code-for-software-services-for-gst-software-users\"><span class=\"ez-toc-section\" id=\"hsn_code_for_software_services_for_gst_software_users\"><\/span>HSN Code for Software Services for GST Software Users<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img decoding=\"async\" width=\"700\" height=\"470\" src=\"https:\/\/cdn.techjockey.com\/blog\/wp-content\/uploads\/2024\/02\/05232753\/HSN-Code.jpg\" alt=\"HSN-Code\" class=\"wp-image-46033\" srcset=\"https:\/\/cdn.techjockey.com\/blog\/wp-content\/uploads\/2024\/02\/05232753\/HSN-Code.jpg 700w, https:\/\/cdn.techjockey.com\/blog\/wp-content\/uploads\/2024\/02\/05232753\/HSN-Code-300x201.jpg 300w, https:\/\/cdn.techjockey.com\/blog\/wp-content\/uploads\/2024\/02\/05232753\/HSN-Code-260x175.jpg 260w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/figure><\/div>\n\n\n<p><a href=\"https:\/\/www.techjockey.com\/blog\/top-10-best-billing-software-invoicing-for-small-businesses-in-india\">GST software<\/a> can be used for paying GST on software-related services. For example, it helps you to find a taxable base for software services after considering any exemptions in accordance with GST compliance and regulations. This will ensure you are paying the correct tax amount according to the HSN code applicability.<\/p>\n\n\n\n<p>Additionally, GST software can also track software services GST-related tasks transactions and import details directly when you <a href=\"https:\/\/www.techjockey.com\/blog\/types-of-gstr-returns\">file GST returns<\/a>. This assists in simplifying GST return filing and reducing data discrepancies.<\/p>\n\n\n\n<p><strong>Conclusion<\/strong><\/p>\n\n\n\n<p>The Harmonized System of Nomenclature (HSN) code for software services plays an important role in classifying and identifying these services in international trade. It delivers a standardized system that facilitates smooth communication across borders.<\/p>\n\n\n\n<p>Software services are categorized under specific HSN codes based on their nature and characteristics, allowing for accurate documentation and streamlined regulatory processes.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-faqs-related-to-gst-rate-amp-hsn-code-for-software\"><span class=\"ez-toc-section\" id=\"faqs_related_to_gst_rate_hsn_code_for_software\"><\/span>FAQs Related to GST Rate &amp; HSN Code for Software<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"saswp-faq-block-section\"><ol style=\"list-style-type:none\"><li style=\"list-style-type: none\"><h3><span class=\"ez-toc-section\" id=\"what_is_the_gst_rate_for_software_products_and_services\"><\/span>What is the GST rate for software products and services?<span class=\"ez-toc-section-end\"><\/span><\/h3><p class=\"saswp-faq-answer-text\">The GST rate for software products and services comes under 0% to 18%.<\/p><li style=\"list-style-type: none\"><h3><span class=\"ez-toc-section\" id=\"do_software_upgrades_attract_gst\"><\/span>Do software upgrades attract GST?<span class=\"ez-toc-section-end\"><\/span><\/h3><p class=\"saswp-faq-answer-text\">Software upgrades are generally considered a new software supply service and therefore, the GST depends on the prevailing rates.<\/p><li style=\"list-style-type: none\"><h3><span class=\"ez-toc-section\" id=\"are_there_any_exemptions_in_gst_for_open-source_software\"><\/span>Are there any exemptions in GST for open-source software?<span class=\"ez-toc-section-end\"><\/span><\/h3><p class=\"saswp-faq-answer-text\">While open-source software is free to use, any related services and customization will attract GST payments.<\/p><li style=\"list-style-type: none\"><h3><span class=\"ez-toc-section\" id=\"what_is_the_hsn_code_for_computer_service_and_installation\"><\/span>What is the HSN code for computer service and installation?<span class=\"ez-toc-section-end\"><\/span><\/h3><p class=\"saswp-faq-answer-text\">The HSN code for computer service and installation is HSN\/SAC 998713.<\/p><li style=\"list-style-type: none\"><h3><span class=\"ez-toc-section\" id=\"what_is_the_sac_code_for_software_maintenance\"><\/span>What is the SAC code for software maintenance?<span class=\"ez-toc-section-end\"><\/span><\/h3><p class=\"saswp-faq-answer-text\">The SAC code for software maintenance is 998314 that deals with management consulting or IT services.<\/p><\/ul><\/div>","protected":false},"excerpt":{"rendered":"<p>Summary: Navigating through the taxation system is quite complex, especially in the case of HSN code and GST rate. This article addresses these tax intricacies and mentions different HSN codes available for software services. The HSN code for software services serves as a universal language for trade, enabling businesses to navigate the complexities of cross-border [&hellip;]<\/p>\n","protected":false},"author":168,"featured_media":46031,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7515,9183],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v22.2) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>GST Rate &amp; HSN Code for Software and Software Services<\/title>\n<meta name=\"description\" content=\"HSN code for software services covers plenty of services having different GST rates. 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Explore more about these codes & applicable GST rate below.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.techjockey.com\/blog\/wp-json\/wp\/v2\/posts\/46029","og_locale":"en_US","og_type":"article","og_title":"GST Rate &amp; HSN Code for Software and Software Services","og_description":"HSN code for software services covers plenty of services having different GST rates. Explore more about these codes & applicable GST rate below.","og_url":"https:\/\/www.techjockey.com\/blog\/wp-json\/wp\/v2\/posts\/46029","og_site_name":"Techjockey.com Blog","article_publisher":"https:\/\/www.facebook.com\/Techjockey\/","article_published_time":"2024-02-05T18:18:02+00:00","article_modified_time":"2026-01-02T09:14:12+00:00","og_image":[{"width":1200,"height":628,"url":"https:\/\/cdn.techjockey.com\/blog\/wp-content\/uploads\/2024\/02\/05232741\/GST-Rate-HSN-Code-for-Software-and-Software-Services.png","type":"image\/png"}],"author":"Varsha","twitter_card":"summary_large_image","twitter_creator":"@TechJockeys","twitter_site":"@TechJockeys","twitter_misc":{"Written by":"Varsha","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.techjockey.com\/blog\/gst-rate-hsn-code-for-software-and-services#article","isPartOf":{"@id":"https:\/\/www.techjockey.com\/blog\/gst-rate-hsn-code-for-software-and-services"},"author":{"name":"Varsha","@id":"https:\/\/www.techjockey.com\/blog\/#\/schema\/person\/6b8e959336e8c876369bdcc8da086d6d"},"headline":"GST Rate &amp; HSN Code for Software and Software Services","datePublished":"2024-02-05T18:18:02+00:00","dateModified":"2026-01-02T09:14:12+00:00","mainEntityOfPage":{"@id":"https:\/\/www.techjockey.com\/blog\/gst-rate-hsn-code-for-software-and-services"},"wordCount":924,"publisher":{"@id":"https:\/\/www.techjockey.com\/blog\/#organization"},"image":{"@id":"https:\/\/www.techjockey.com\/blog\/gst-rate-hsn-code-for-software-and-services#primaryimage"},"thumbnailUrl":"https:\/\/cdn.techjockey.com\/blog\/wp-content\/uploads\/2024\/02\/05232741\/GST-Rate-HSN-Code-for-Software-and-Software-Services.png","articleSection":["GST Software","Software Guide"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.techjockey.com\/blog\/gst-rate-hsn-code-for-software-and-services","url":"https:\/\/www.techjockey.com\/blog\/gst-rate-hsn-code-for-software-and-services","name":"GST Rate & HSN Code for Software and Software Services","isPartOf":{"@id":"https:\/\/www.techjockey.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.techjockey.com\/blog\/gst-rate-hsn-code-for-software-and-services#primaryimage"},"image":{"@id":"https:\/\/www.techjockey.com\/blog\/gst-rate-hsn-code-for-software-and-services#primaryimage"},"thumbnailUrl":"https:\/\/cdn.techjockey.com\/blog\/wp-content\/uploads\/2024\/02\/05232741\/GST-Rate-HSN-Code-for-Software-and-Software-Services.png","datePublished":"2024-02-05T18:18:02+00:00","dateModified":"2026-01-02T09:14:12+00:00","description":"HSN code for software services covers plenty of services having different GST rates. 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