IT Consulting Services Under SAC Code 998313
IT consulting services focus on using technology to solve business problems. Consultants review existing IT systems, plan new IT solutions, design architectures and guide implementation of hardware and software. Many MSMEs depend on IT consulting services to select the right software, move to cloud and improve data security. Under GST, these IT consulting services are classified under SAC 998313. This SAC code and its GST rate decide how GST applies on IT consulting, IT solutions consulting and related professional fees.
IT Consulting Services GST Rate for SAC Code 998313
Management consulting, business consulting, IT consulting and software development services under these SAC codes are treated as professional and technical services under GST. The taxable value normally includes consulting fees, project based charges and retainers, excluding any pure reimbursements that are recovered from clients at actuals with proper supporting documents.
Post the September 2025 rationalisation, most taxable consulting and software development services generally fall within the 18% GST slab with input tax credit for eligible registered recipients. Export of services may qualify as zero rated supplies subject to conditions, and any special notifications for particular service categories should be reviewed before raising invoices.
The table below explains the prevailing GST treatment for SAC code 998313, indicating the usual 18% slab for taxable consulting or software development services and any notified exceptions.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 998313 | Information technology (IT) consulting and support services | 18% with ITC | 18% with ITC | IT consulting under 998313 appears with 18% in SAC charts; again, 5/12/18 and a nil concession only applied to a limited sports event window. Under GST 2.0, IT services are treated as typical 18% professional services. |
Consulting firms and software development companies using this SAC code should mention service value, GST rate in % and GST amount clearly on tax invoices. The same SAC and rate should be mirrored in GSTR 1 and GSTR 3B so that clients can claim input tax credit properly and remain comfortable during any GST assessment or audit.
Explore Other SAC Codes Under 9983
These SAC codes fall under the business and management consulting services group 9983, which covers management consulting, business consulting, IT consulting and software development services. Each six digit SAC within this group focuses on a different style of consulting or technical delivery for GST purposes.
These are the main related six-digit SAC codes under 9983.
Consulting and IT service providers should select the SAC that most accurately describes their primary engagement, whether it is management consulting, wider business consulting, IT consulting services or software development services. Using the correct SAC and GST rate in % makes billing transparent, supports input tax credit for clients and reduces the risk of disputes during GST scrutiny.
Conclusion
IT consulting services under SAC 998313 help businesses plan and implement technology solutions, from system design to IT strategy. Professional fees for these services normally attract 18% GST with input tax credit for registered clients. IT consultants should use SAC 998313 on their invoices, apply the correct GST rate in %, show GST separately and match the same classification and rate in GST returns.
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
-
What is SAC code 998313 in GST?
SAC 998313 is used for IT consulting and IT solutions advisory services. It covers professional advice on technology choices, system architecture, IT policies and digital roadmaps. These services focus on planning and guidance rather than hands on development or hardware supply.
-
Does SAC 998313 cover IT consulting and IT solutions advisory services?
Yes. Services like technology audits, system assessment, software selection, IT roadmap design and digital transformation strategy normally fall under SAC 998313. The consultant analyses the client’s current setup, recommends improvements and helps plan future investments without necessarily writing code or directly implementing the systems.
-
What GST rate applies to IT consulting under SAC 998313?
IT consulting services under SAC 998313 are generally taxed at 18%. GST is charged on retainers, project fees and success based advisory charges. Export of services may be zero rated when conditions are met, so providers should check place of supply rules and keep proper agreements and documents.
-
Should system assessment and IT strategy work use SAC 998313?
Yes. When the core work is assessment of existing systems, gap analysis, IT budgeting or strategy planning, invoices should usually mention SAC 998313. If the same vendor later develops software or manages infrastructure, those activities are classified separately under other SAC codes related to development or hosting services.
-
Is ITC allowed on GST paid for SAC 998313 services?
Businesses can normally claim ITC on GST paid for SAC 998313 services when IT consulting supports their taxable operations, such as improving ERP, security or digital sales platforms. If the advice relates mainly to exempt activities or personal use, ITC may not be available. Clear project documentation helps.