IT Services Under SAC Code 998319
IT services under this code cover a wide range of specialised information technology support beyond standard hosting, infrastructure management and software development. Service providers may offer system integration, custom configuration, technical support, migration projects and other specialised IT work based on client needs. These IT services help MSMEs keep their technology landscape stable and secure. Under GST, such IT services are classified under SAC 998319. This SAC code and its GST rate decide how GST is charged on broader IT service engagements.
IT Services GST Rate for SAC Code 998319
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 998319, 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 |
|---|---|---|---|---|
| 998319 | Other information technology services n.e.c | 18% with ITC | 18% with ITC | Residual IT services (support, maintenance, misc. IT work) fall under the same 18% standard slab for 9983. New GST structure (5% / 18% / 40%) leaves this band unchanged for IT. |
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.
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 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 services under SAC 998319 cover specialised technology support that does not fall neatly under other IT codes, including integration, configuration and project based technical work. These services are typically taxed at 18% with input tax credit for registered clients, subject to export and special notification conditions. IT firms should mention SAC 998319 on invoices, apply the proper GST rate in %, and mirror the same in GST returns so that clients can justify input tax credit during assessments.
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 is SAC code 998319 in GST for general IT services?
SAC 998319 is a residual code for specialised IT and digital technology services not covered under specific IT SAC codes. It may include niche tech advisory, small integration work, minor automation projects or other technology services that do not clearly fit under development, hosting or managed services categories.
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Does SAC 998319 cover specialised tech and digital technology services?
Yes. When an IT service is customised and technical but does not squarely fall under software development, hosting, support or consulting codes, it is often classified under SAC 998319. Examples include small integrations, script based automation or unique technology assignments that are one time and narrowly defined.
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What GST rate applies to services under SAC 998319?
Services under SAC 998319 are generally taxed at 18%. GST applies on all professional fees or project charges. Export of services rules still apply if clients are outside India and other conditions are met. Service providers should clearly describe work scope in contracts and invoices for correct classification.
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When should a provider use SAC 998319 instead of specific IT SAC codes?
SAC 998319 is used when the work does not clearly match codes for consulting, development, hosting or managed services. It is a fallback option for unusual technology projects. Providers should first check if another SAC fits better, because using specific codes is generally preferred in GST classifications.
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Is ITC allowed on GST paid for SAC 998319 services?
Businesses can usually claim ITC on GST paid for SAC 998319 services when those services support their taxable supplies, for example by improving systems, automations or digital processes. If the work benefits exempt activities or personal projects, ITC is not allowed. Keeping detailed work descriptions helps in audits.