Intellectual Property Rights Services Under SAC Code 997339
Intellectual Property Licensing services allow businesses to use specialised resources or knowledge without owning them fully. In day to day work, clients pay a fee or royalty so that they can access these rights or research outputs for their own projects, products or operations.
SAC 997339 is used when the main service is licensing services for the right to use other intellectual property products and other resources not elsewhere classified. In simple terms, this code applies where the core agreement is about giving permission or carrying out focused research instead of selling physical goods.
In real life, these services are common in areas like other intellectual property products, content and data licensing. Using the correct SAC 997339 under GST helps both service providers and clients keep invoices clear and GST treatment consistent.
Intellectual Property Rights Services GST Rate for SAC Code 997339
From a GST point of view, intellectual property licensing 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 research based professional 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 services are used for making taxable supplies, subject to normal ITC conditions.
The table below summarises the latest standard GST rate for SAC code 997339.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 997339 | Licensing services for the right to use other intellectual property products and other resources n.e.c | 12% with ITC or 18% with ITC | 18% with ITC | Residual intellectual-property licensing under 997339 is now typically shown at 18% GST with ITC. Older tables mentioning 12% plus narrow nil exemptions are effectively rationalised by shifting the 12% portion into the standard 18% services slab. |
In practice, service providers who offer intellectual property licensing should apply 18% GST on the taxable value, quote SAC 997339 on tax invoices and keep the same classification in their GST records so that billing and input tax credit remain simple to review.
Explore Other SAC Codes Under 9973
SAC 997339 is part of the broader heading 9973, which covers leasing, rental and licensing services for different kinds of property and rights. Within this heading, each six digit SAC defines a specific type of leasing or licensing arrangement so that GST classification stays clear.
Below is a list of related six-digit SAC codes under 9973.
When selecting a code from the 9973 family, businesses should choose the SAC that best describes the central activity, whether it is intellectual property licensing or some other related service in the same group. Correct use of the six digit SAC and GST rate in % helps avoid disputes, keeps pricing transparent and makes input tax credit planning easier for both sides.
Conclusion
SAC 997339 is meant for intellectual property licensing where clearly defined rights or research work are supplied in return for a fee or royalty. These services are generally taxed at 18% under GST, with ITC normally available to eligible registered recipients when they use the service for taxable business activities. By classifying bills under SAC 997339 and applying the correct GST rate in %, businesses can keep their contracts, invoices and GST compliance neat and easy to support during reviews or audits.
Important Disclaimer
The entire content on this page has been arranged to the best of the author's understanding and is subject to periodic updates as per the law for the time being in force. The above does not constitute professional advice or a formal recommendation. While due care has been taken in preparing this content, the existence of mistakes and omissions cannot be ruled out. BUSY Infotech Private Ltd. and its associates will not be held responsible for any loss or damage arising from any inaccurate or incomplete information in this document. We recommend consulting a professional tax consultant before acting on the information contained in this piece of content.
Frequently Asked Questions
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What does SAC code 997339 cover in GST?
SAC 997339 covers project management and project management consultancy (PMC) services for construction and infrastructure projects. It includes planning, coordination, monitoring and control of project schedule, cost, quality and safety on behalf of owners, from pre construction to completion and handover phases.
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Does SAC 997339 include end to end project management and PMC services for construction projects?
Yes. When a PMC firm handles planning, tender support, contractor coordination, site supervision, progress review and quality reporting for a project, the service is normally classified under SAC 997339. The PMC does not usually perform actual construction but manages multiple contractors and consultants on behalf of the client.
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What GST rate applies to PMC fees under SAC 997339?
PMC and project management services under SAC 997339 are generally taxed at 18%. GST is charged on retainers, milestone based fees and success linked payments. For government or public projects, parties should verify whether any special tax treatment or exemptions apply based on recent GST notifications or schemes.
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Should builders and infrastructure companies bill their PMC work using SAC 997339?
Yes. Developers, engineering firms or independent PMCs offering dedicated project management services should mention SAC 997339 on their invoices. This separates PMC work from design, construction, supply or O&M contracts. Clear classification helps in GST reporting, tender documentation and in applying the correct tax treatment to each contract.
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Can developers claim ITC on GST paid for SAC 997339 services?
Developers and project owners can usually claim ITC on GST paid for SAC 997339 when the project leads to taxable supplies, such as sale of commercial units or taxable works contracts. For projects linked to exempt supplies or personal use, ITC is restricted. Proper documentation is essential for compliance.