What is the HSN / SAC Code for Website Development in India?
One of the most frequent accounting and legal questions Indian business owners, startups, and IT agencies ask is: what is the website development HSN code and GST rate in India? When hiring a website development company or issuing invoices for web design, using the correct code is essential for tax compliance and Input Tax Credit (ITC).
Under the Indian Goods and Services Tax (GST) system, physical goods use HSN (Harmonized System of Nomenclature) codes, while services use SAC (Services Accounting Code). For website development, web design, and digital software engineering, the official GST classification code is SAC 998314.
SAC 998314 falls under Chapter 99, Heading 9983 ('Other professional, technical and business services'), specifically covering 'Information technology design and development services'.
What is the Applicable GST Rate on Website Development Services?
The applicable GST rate for website development, website design, UI/UX design, and web application engineering in India is 18%. This tax rate applies uniformly across all digital engineering and IT consultancy services.
The breakdown of the 18% GST depends on whether the transaction is intra-state or inter-state:
- Intra-State Supply (Client and agency in the same state, e.g., Tamil Nadu to Tamil Nadu): 9% CGST (Central GST) + 9% SGST (State GST) = 18% Total
- Inter-State Supply (Client in one state and agency in another, e.g., Tamil Nadu to Karnataka or Maharashtra): 18% IGST (Integrated GST)
- Export of Website Development Services (Client located outside India): 0% GST (Zero-Rated Supply) when transacted under a valid Letter of Undertaking (LUT) with payment received in convertible foreign currency
Invoice Requirements for Website Development & Design Services
A compliant GST tax invoice issued by a website development company must clearly display specific statutory information to ensure the client can seamlessly claim Input Tax Credit (ITC):
1. 6-Digit SAC Code: Explicitly state 'SAC: 998314' alongside the service item description (e.g., 'Next.js Website Design & Custom Web Development Services').
2. GSTIN of Both Parties: Valid 15-digit GST identification numbers for both the technology agency and the recipient business.
3. Place of Supply (POS): Clearly indicate the two-digit state code where services are deemed provided.
4. HSN/SAC Summary Table: A separate taxable value, CGST/SGST/IGST breakdown, and total invoice amount in words and figures.
Claiming Input Tax Credit (ITC) on Website Development Expenses
Because a business website is an essential operational marketing and sales asset, any registered business in India that purchases website development services can claim 100% Input Tax Credit (ITC) on the 18% GST charged on the invoice.
To claim ITC, ensure that the vendor files their GSTR-1 on time so the credit reflects automatically in your company's GSTR-2B statement. At Cosuniq Technologies, all client invoices are fully compliant with SAC 998314, enabling our corporate clients across Chennai, Coimbatore, and pan-India to offset their input tax immediately.
Partner with an Accountable Web Development Company
Working with an established, GST-compliant technology partner gives you financial predictability, legal peace of mind, and enterprise-grade code. Explore our website development services or reach out to Cosuniq Technologies for a clear, GST-compliant project proposal.
Cosuniq Engineering & Finance Team
Specialized insights and engineering practices from Cosuniq Technologies. We design, build, and scale high-performance web applications, mobile platforms, and digital systems.