Technology License Under SAC Code 997335

Technology License services involve granting limited rights to use or exploit intellectual property instead of transferring full ownership. In day to day business, companies pay licence fees or royalties for these rights so that they can use existing content or knowledge without creating it from scratch.

For SAC 997335, this mainly covers licensing services for using r&d-based technologies, innovations, and products. and is often linked to related activities such as innovation licensing.

Under GST, these supplies are reported using SAC 997335. Using the right SAC code and rate helps service providers raise clear tax invoices and helps clients understand how GST is being charged on the licence fee.

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997335 SAC Code GST Rate

Review old and new GST rates for Technology License under 997335 SAC Code.

From a GST point of view, technology license fees are treated as supply of services. The taxable value usually includes upfront licence fees, recurring royalties, minimum guarantee amounts, renewal charges and any related service or support fees that form part of the same agreement.

After the September 2025 GST revision, most licensing and intellectual property related services that do not have any special notification continue to fall under the standard 18% slab. Registered business recipients can generally claim input tax credit when these licensed rights are used for making taxable supplies, subject to normal ITC conditions.

The table below gives the prevailing standard GST rate for SAC code 997335.

SAC Code

997335

Description

Licensing services for the right to use R&D products

New Rate

18 %
Standard

Old Rate

12 %

Notes

Licensing of R&D outputs was also mapped with 12% / 18% historically but is now generally listed at 18% GST with ITC for standard supplies. From 22 Sep 2025, the 12% option is rationalised into the 18% slab, leaving 18% as the typical rate.

In practice, businesses that provide technology license should apply 18% GST on the taxable value, mention the correct SAC code on invoices and keep treatment consistent in their GST records so that licence income and related input tax credit remain easy to track.

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Explore More SAC Codes Under 9973

Practical Classification Guidance

When choosing a code from the 9973 group, service providers should pick the SAC that best matches the main right being licensed, whether it is technology license, artwork, publications, technology or trademarks. Using the correct six digit SAC and GST rate in % helps avoid disputes and keeps invoicing and input tax credit planning straightforward for both parties.

Conclusion

SAC 997335 is used for technology license where the service provider grants defined rights in return for a licence fee or royalty. These services are generally taxed at 18% under GST, with input tax credit normally available to eligible registered recipients when the licensed rights support their taxable business activities. By classifying such income under SAC 997335 and applying the correct GST rate in %, businesses can keep their licensing agreements, invoices and GST compliance neat and easy to explain during reviews.

Frequently Asked Questions

Clear answers to common queries about SAC Code 997335 and GST compliance.

What is SAC code 997335 in GST for technology licensing?

SAC 997335 covers licensing of research based technologies, industrial processes and technical know how. It is used when a technology owner grants another company the right to use patents, formulas, designs or proprietary methods for manufacturing, product development or other commercial purposes, in return for fees or royalties.

Does SAC 997335 cover licensing of R&D based technologies and innovations?

Yes. When universities, research labs or companies license process technologies, product designs or patented innovations to manufacturers or partners, those agreements generally come under SAC 997335. The licensee gets defined rights to use the technology in their business, while the licensor retains intellectual property ownership and controls.

What GST rate applies to technology licence fees under SAC 997335?

Technology licensing services under SAC 997335 are usually taxed at 18%. GST is charged on upfront licence fees, ongoing royalties or revenue share. Parties should agree clearly on how consideration is calculated and when GST becomes payable, especially for percentage based royalty linked to production or sales.

Should companies use SAC 997335 when licensing patents or technical know how?

Yes. Companies that license patents, trade secrets or other technical know how to third parties should classify the service under SAC 997335 in their invoices. This helps both sides treat the transaction as a supply of service and handle GST reporting, withholding tax and contract compliance properly.

Can businesses claim ITC on GST paid for SAC 997335 licences used in production?

Businesses can generally claim ITC on GST paid for SAC 997335 licences when the technology is used to manufacture taxable goods or provide taxable services. The licence becomes an important input for their operations. If it supports exempt activities, ITC may be restricted. Documentation should show business use clearly.

Important Disclaimer

The above does not constitute professional advice or a formal recommendation. We recommend consulting a professional tax consultant before acting on the information contained in this piece of content.