Computer Science Research Services Under SAC Code 998144
Computer science research services focus on R and D in software, AI, data science and digital systems. Teams work on software research, new algorithms, security frameworks and technology prototypes for business clients and institutions. Under GST, these computer science research services are classified under SAC 998144. This SAC code and its GST rate decide how GST applies on research retainers, funded projects and technical consulting linked to new software development.
Computer Science Research Services GST Rate for SAC Code 998144
Biotechnology, computer science and scientific research activities under these SAC codes are treated as research and development services under GST. The taxable value normally includes research fees, milestone payments and retainers billed to clients for R and D work, excluding any clearly identified government taxes or out of pocket expenses charged at actuals.
After the September 2025 rationalisation, regular commercial research and development services that are not covered by a special exemption are generally placed in the 18% slab with input tax credit for registered business clients. Certain government funded or educational research projects may continue to enjoy concessional or special treatment as per the latest GST notifications, so providers should check those conditions carefully.
The table below explains the prevailing GST treatment for SAC code 998144, showing the standard 18% slab for taxable research services and cases where notified benefits may apply.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 998144 | Research and development originals in computer related sciences | 18% with ITC | 18% with ITC | Computer-science research outputs fall in the same 9981 family. Existing rate references show 18% GST and there is no contrary entry in the 56th Council FAQ or press release, so 18% continues. |
Research organisations and R and D service providers using this SAC code should mention the SAC, taxable value, GST rate in % and tax amount clearly on invoices. The same classification and rate should be followed in GSTR 1 and GSTR 3B so that business clients can claim input tax credit properly and defend the treatment during any GST audit or review.
Explore Other SAC Codes Under 9981
These SAC codes fall under the wider research and development services group 9981, which covers biotechnology research, computer science research, scientific research services and other specialised R and D activities. Each six digit SAC within this group identifies a different research focus area for GST classification and reporting.
The list below highlights key six-digit SAC codes under 9981.
Universities, labs and private research organisations should choose the SAC that best describes the main research work, for example biotechnology research, computer science research or broader scientific research services. Using the correct SAC and GST rate in % helps clients understand the tax treatment, supports clean input tax credit flow and reduces the chance of disputes during GST assessments.
Conclusion
Computer science research services under SAC 998144 focus on software research, AI, data science and new digital system development. Fees for such research work are generally taxable at 18% with input tax credit for eligible business clients. Service providers should classify projects under SAC 998144, charge GST at the correct rate in %, show tax clearly on invoices and maintain the same treatment in GST returns to keep compliance smooth.
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 998144 cover in GST?
SAC 998144 covers research and development services in software, computer science and digital technologies. It includes advanced algorithm design, AI and machine learning research, new software architectures, cybersecurity R&D and experimental digital systems that go beyond regular software development or routine IT services.
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Does SAC 998144 include software and computer science R&D services?
Yes. When a project aims to create original software technology, new algorithms or experimental platforms rather than standard business applications, it usually falls under SAC 998144. Examples include AI models, new databases, blockchain protocols or advanced simulation engines developed for future commercial or technical use.
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What GST rate is charged on services under SAC 998144?
Services under SAC 998144 are normally taxed at 18%. GST is applied on R&D contracts, development retainers and milestone based payments. Providers and clients should also consider place of supply rules, especially for cross border R&D, because export of services may qualify for zero rating under GST.
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Should AI and digital innovation projects use SAC 998144?
Yes. AI, machine learning and other cutting edge digital innovation projects that aim to create new technology or intellectual property are usually billed under SAC 998144. Routine app building or website work would use other IT SAC codes. Clear project descriptions help avoid confusion in classification.
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Can companies claim ITC on R&D services billed under SAC 998144?
Companies can generally claim ITC on GST paid for SAC 998144 services when the R&D supports their taxable business offerings, such as new software products or platform features. If research is for non business objectives or exempt activities, ITC is restricted. Proper documentation of project goals and outcomes is key.