It Infrastructure Management Services Under SAC Code 998316
IT infrastructure management services look after the complete IT backbone of a business, including servers, networks, storage and endpoint devices. Service providers monitor systems, handle updates, manage backups and resolve incidents so that business operations run without major IT disruptions. These services are often offered as managed IT services or network management services on a monthly retainer. Under GST, IT infrastructure management services are classified under SAC 998316. This SAC code and its GST rate decide how GST applies on managed IT and infrastructure support contracts.
It Infrastructure Management Services GST Rate for SAC Code 998316
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 998316, indicating the usual 18% slab for taxable consulting or IT 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 |
|---|---|---|---|---|
| 998316 | IT infrastructure and network management services | 18% with ITC | 18% with ITC | Network management services under 998316 are explicitly listed in professional-service schedules with 18% GST. Old notifications mentioning 5/12/18 + nil relate only to FIFA-event work and are not general-case rates. |
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.
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, web hosting support and software development services. Each six digit SAC within this group focuses on a different style of consulting or technical delivery for GST purposes.
Below is a list of 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 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
IT infrastructure management services under SAC 998316 include full scope management of servers, networks and IT assets through managed IT and network management offerings. Fees for such services generally fall in the 18% GST slab with input tax credit for business recipients. Service providers should classify their work under SAC 998316, charge GST at the right rate in %, present tax amounts transparently and keep GST returns consistent with this treatment.
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 does SAC code 998316 cover in GST?
SAC 998316 covers managed IT services, network management and infrastructure support. It includes monitoring servers, managing networks, applying patches, handling security configurations and providing remote or on site IT administration for clients who outsource day to day management of their hardware and systems to specialised providers.
-
Does SAC 998316 include managed IT services and network management?
Yes. Activities like round-the-clock network monitoring, helpdesk support, endpoint management, server maintenance, backup management and routine IT operations support generally fall under SAC 998316. The service provider focuses on keeping systems available and secure rather than designing high level IT strategy or developing custom applications.
-
What is the GST rate on IT infrastructure management under SAC 998316?
Managed IT and network management services under SAC 998316 are normally taxed at 18%. GST applies on monthly AMC charges, per device fees or bundled infrastructure management contracts. If services qualify as export of services, they may be zero rated. Providers should track client location and contract terms carefully.
-
Should AMC for servers and networks use SAC 998316?
Yes. When annual maintenance contracts cover proactive monitoring, remote support and regular upkeep of servers, networks and other IT assets, invoices generally mention SAC 998316. Hardware sales or spare parts provided under the same engagement may need separate classification and valuation depending on how the contract is structured.
-
Can businesses claim ITC on services billed under SAC 998316?
Registered businesses can usually claim ITC on GST paid for SAC 998316 services when IT infrastructure supports taxable operations, such as billing, production systems or customer platforms. If systems mainly serve exempt activities, ITC may be restricted proportionately. Proper asset mapping and documentation help justify credit claims.