Web Hosting Under SAC Code 998315

Web hosting services provide the server space, bandwidth and infrastructure needed to keep business websites, portals and web applications live on the internet. Providers offer shared, VPS, dedicated and cloud hosting so that MSMEs can run their sites, online stores and service portals without maintaining their own servers. These web hosting services sit close to cloud infrastructure services and IT server hosting solutions. Under GST, such web hosting services are classified under SAC 998315. This SAC code and its GST rate decide how GST is charged on web hosting plans and related infrastructure support.

Live Demo Available Today

Experience the power of Expert Accounting

Join our guided walkthrough to see how BUSY can transform your business operations.

Trusted by 6,00,000+ Users
4.6 Google Rating
+91
expand_more

* No credit card required

998315 SAC Code GST Rate

Review old and new GST rates for Web Hosting under 998315 SAC Code.

Management consulting, business consulting, IT consulting, web hosting and software related services under these SAC codes are treated as professional and technical services under GST. The taxable value normally includes consulting fees, project charges, monthly retainers and hosting or support fees, excluding any pure reimbursements that are recovered from clients at actuals with proper supporting documents.

Post the September 2025 rationalisation, most taxable consulting and IT service supplies 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 998315, indicating the usual 18% slab for taxable consulting or IT services and any notified exceptions.

SAC Code

998315

Description

Hosting and information technology (IT) infrastructure provisioning services

New Rate

18 %
Standard

Old Rate

18 %

Notes

Hosting and infra provisioning are treated as IT professional services; standard GST-rate references for 9983 show 18% and allow ITC in normal B2B usage. No change flagged in the Sept 2025 rationalisation.

Consulting firms, IT service providers and design studios 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.

Stop worrying about SAC & GST compliance

BUSY auto-applies the correct SAC codes & GST rates, ensuring 100% error-free billing every single time.

Automatic Updates
Error-free GSTR
6,00,000+ Happy Users
+91
expand_more

* No credit card required

Explore More SAC Codes Under 9983

Practical Classification Guidance

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 infrastructure management, web hosting services, general IT services or architectural and design consulting. 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

Web hosting services under SAC 998315 cover the server, bandwidth and infrastructure support needed to keep business websites and applications live. These services are usually taxed at 18% with input tax credit for eligible registered clients, while export of services may enjoy zero rated treatment if conditions are met. Hosting providers should use SAC 998315 on invoices, apply the correct GST rate in %, show GST amounts clearly and align GSTR 1 and GSTR 3B with this classification.

Frequently Asked Questions

Clear answers to common queries about SAC Code 998315 and GST compliance.

What is SAC code 998315 in GST?

SAC 998315 covers web hosting, cloud infrastructure and related server space services. It includes shared hosting, virtual private servers, dedicated servers, managed cloud instances and similar offerings where clients pay for computing resources, storage and connectivity to run their websites or applications on remote infrastructure.

Does SAC 998315 cover web hosting and cloud infrastructure services?

Yes. Services like domain linked hosting, managed servers, storage space, bandwidth, backup hosting and platform hosting are usually classified under SAC 998315. The provider owns or controls the data centre or cloud infrastructure and allocates capacity for customers based on agreed plans and service level commitments.

What GST rate applies to web hosting under SAC 998315?

Web hosting and cloud infrastructure services under SAC 998315 are generally taxed at 18%. GST applies on monthly or yearly subscription charges, setup fees and managed service add ons. For cross border customers, place of supply and export of services rules decide whether tax is charged or not.

Should managed server and VPS plans use SAC 998315?

Yes. When the main service is providing and managing hosting resources such as virtual private servers or dedicated machines, invoices should typically mention SAC 998315. If the same provider also offers software development or consulting, those components are classified separately. Good breakup in invoices avoids confusion in GST returns.

Is ITC available on GST paid for SAC 998315 services?

Businesses can usually claim ITC on GST paid for SAC 998315 services if hosting supports their taxable websites, portals, applications or online stores. Where hosting is used for personal blogs, charitable activities or fully exempt supplies, ITC is not allowed. Keeping separate accounts for business and non business use helps.

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.