--- title: "Software Licensing Services | Professional Software Licensing Solutions" description: "Expert software licensing services covering compliant, reliable, and high-quality solutions tailored to your needs. SAC Code 997331." canonical: "https://busy.in/sac-code-997331/" --- # Software Licensing under SAC Code 997331 Part of [SAC 9973: Leasing or rental services](https://busy.in/sac-code-9973/). Software licensing services cover the grant of rights to use computer software and databases for a fee, usually through subscriptions, term licences or user based models. Businesses rely on software licensing services to run accounting systems, ERPs, CRMs, database platforms and other applications without buying the underlying intellectual property. Under GST, these services are classified under SAC 997331. This SAC code and its GST rate decide how GST is charged on software licence fees and database access charges. ## 997331 SAC Code GST rate Under GST, leasing, rental and licensing services are treated as supply of services even when the underlying item is a movable good or an intangible like software. The taxable value normally includes base rental or licence fees, recurring usage charges and any service components that form part of the agreement price. After the September 2025 GST slab revision, most taxable rental and licensing services that do not enjoy any special exemption or concessional entry are placed in the 18% slab with input tax credit for eligible registered recipients. Service providers should still track the latest notifications to confirm if any specific relief applies to their sector. **The table below explains the current standard GST rate for SAC code 997331 for computer software and database licensing services.** | SAC code | Description | New GST rate (from 22 Sep 2025) | Old GST rate (till 21 Sep 2025) | Notes | | --- | --- | --- | --- | --- | | 997331 | Licensing services for the right to use computer software and databases. | 18% with ITC | 12% with ITC or 18% with ITC | Historic entries showed 12% for some permanent transfers of IPR and 18% for software IPR, plus a time-bound nil rate for certain sports-event related supplies. Recent SAC-specific tools now show 18% as the working rate for this code. With the 12% slab removed from 22 Sep 2025, the typical rate consolidates at 18% with ITC. | In most practical cases these services are taxed at 18%, and eligible registered business customers can claim input tax credit when the service is used for making taxable outward supplies. Service providers should apply the correct GST rate in % on the invoice value, mention the SAC code clearly and follow the same treatment in their GST records so that compliance stays smooth for both sides. ## Practical classification guidance Service providers should map their main offering to the closest SAC code, whether they rent household linen, clothing, tools, other goods or provide software and database access. Using the correct six digit SAC and GST rate in % makes billing transparent, supports proper input tax credit for customers and reduces the chance of classification disputes during GST checks. ## Conclusion SAC 997331 is used for software licensing services where users get rights to use computer software and databases against licence or subscription fees. These services are typically taxed at 18% under GST, and registered customers may claim input tax credit when the software supports taxable business operations. Choosing SAC 997331 and the correct GST rate in % helps both software providers and clients maintain clean invoicing and GST documentation for digital tools. ## Frequently asked questions ### What does SAC code 997331 cover in GST? SAC 997331 covers licensing services for software and databases. It includes granting rights to use standard software, access online databases or install on premise software for a fee. This can be one time licence, subscription based access, or renewal of user rights for business or personal use. ### Does SAC 997331 include licensing and usage rights for software and databases? Yes. When a vendor charges for the right to use software, whether download, cloud based or database access, it usually falls under SAC 997331. The customer does not acquire full ownership of the intellectual property but only usage rights as per licence terms, duration and user count. ### What GST rate applies to software licence fees under SAC 997331? Software and database licensing under SAC 997331 is generally taxed at 18%. GST is charged on licence fees, subscription charges and related support if bundled. Special rules may apply where software is classified as goods, but most standard and SaaS type licences are treated as services at this rate. ### Are SaaS subscriptions and on premise licences both billed with SAC 997331? Yes. Most SaaS subscriptions, on premise software licences and database access agreements are billed with SAC 997331, unless clearly covered by a more specific code. The difference is in deployment model, not in GST category. Vendors should describe the licence type clearly so customers understand the service received. ### Can businesses claim ITC on GST paid for SAC 997331 licences used for operations? Registered businesses can usually claim ITC on GST paid for SAC 997331 licences where the software supports accounting, operations, production, marketing or other taxable activities. ITC is not allowed on software used mainly for non business or exempt activities. Proper licence invoices and usage records help support credit claims. ## Explore more ### Other SAC services under 9973 - [997311: Transport Equipment Rental](https://busy.in/sac-code-997311/) - [997312: Agricultural Machinery Rental](https://busy.in/sac-code-997312/) - [997313: Construction Equipment Rental](https://busy.in/sac-code-997313/) - [997314: Office Equipment Rental](https://busy.in/sac-code-997314/) - [997315: Computer Rental](https://busy.in/sac-code-997315/) - [997316: Telecom Equipment Rental](https://busy.in/sac-code-997316/) - [997319: Machinery Rental](https://busy.in/sac-code-997319/) - [997321: Projector Rental](https://busy.in/sac-code-997321/) - [997322: DVD Rental](https://busy.in/sac-code-997322/) - [997323: Furniture Rental](https://busy.in/sac-code-997323/) - [997324: Sports Equipment Rental](https://busy.in/sac-code-997324/) - [997325: Linen Rental Service](https://busy.in/sac-code-997325/) - [997326: Clothing Rental](https://busy.in/sac-code-997326/) - [997327: Tool Rental](https://busy.in/sac-code-997327/) - [997329: Equipment Rental](https://busy.in/sac-code-997329/) - [997332: Broadcasting Rights](https://busy.in/sac-code-997332/) - [997333: Image Licensing](https://busy.in/sac-code-997333/) - [997334: Publishing License](https://busy.in/sac-code-997334/) - [997335: Technology License](https://busy.in/sac-code-997335/) - [997336: Trademark Licensing](https://busy.in/sac-code-997336/) - [997337: Mining Exploration License](https://busy.in/sac-code-997337/) - [997338: Spectrum Licensing](https://busy.in/sac-code-997338/) - [997339: Intellectual Property Rights](https://busy.in/sac-code-997339/) ### All SAC headings - [99: All Services Accounting](https://busy.in/sac-code-99/) - [9954: Services in building & construction](https://busy.in/sac-code-9954/) - [9961: Services in wholesale trade](https://busy.in/sac-code-9961/) - [9962: Services in retail trade](https://busy.in/sac-code-9962/) - [9963: Accommodation, food & beverage services](https://busy.in/sac-code-9963/) - [9964: Passenger transport services](https://busy.in/sac-code-9964/) - [9965: Goods transport services](https://busy.in/sac-code-9965/) - [9966: Rental services of transport vehicles](https://busy.in/sac-code-9966/) - [9967: Supporting services in transport](https://busy.in/sac-code-9967/) - [9968: Postal & courier services](https://busy.in/sac-code-9968/) - [9969: Electricity, gas & water supply services](https://busy.in/sac-code-9969/) - [9971: Financial & related services](https://busy.in/sac-code-9971/) - [9972: Real estate services](https://busy.in/sac-code-9972/) - [9973: Leasing or rental services](https://busy.in/sac-code-9973/) - [9981: Research & development services](https://busy.in/sac-code-9981/) - [9982: Legal & accounting services](https://busy.in/sac-code-9982/) - [9983: Professional, technical & business services](https://busy.in/sac-code-9983/) - [9984: Telecommunications & broadcasting supply services](https://busy.in/sac-code-9984/) - [9985: Support services to business](https://busy.in/sac-code-9985/) - [9986: Support services to agriculture, hunting, forestry & more](https://busy.in/sac-code-9986/) - [9987: Maintenance, repair & installation services](https://busy.in/sac-code-9987/) - [9988: Manufacturing services on physical inputs](https://busy.in/sac-code-9988/) - [9989: Services in publishing, printing & bookbinding](https://busy.in/sac-code-9989/) - [9991: Public administration & other services](https://busy.in/sac-code-9991/) - [9992: Education services](https://busy.in/sac-code-9992/) - [9993: Human health & social care services](https://busy.in/sac-code-9993/) - [9994: Sewage & waste collection](https://busy.in/sac-code-9994/) - [9995: Services of membership organizations](https://busy.in/sac-code-9995/) - [9996: Recreational, cultural & sporting services](https://busy.in/sac-code-9996/) - [9997: Other Services](https://busy.in/sac-code-9997/)