Internet Backbone Under SAC Code 998421

Internet Backbone Services keep large volumes of internet traffic moving between cities, data centres and international routes. They form the core links that internet service providers and big organisations depend on for high capacity connectivity.

This code is used when the main work is long distance data carriage and backbone connectivity, not last mile internet to retail users. It helps telecom carriers and wholesale providers bill network capacity in a clear and consistent way under GST.  These services now support most routine online work for users.

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998421 SAC Code GST Rate

Review old and new GST rates for Internet Backbone under 998421 SAC Code.

From a GST perspective, internet backbone services are treated as supply of telecommunication services. The taxable value usually includes recurring rental, usage based charges, activation fees and any bundled add ons provided under the same plan.

After the September 2025 GST changes, most internet and data communication services that are not specifically exempt continue under the standard 18% slab. Registered business subscribers can generally claim input tax credit when these services are used for their taxable activities and proper documentation is maintained.

The table below shows the latest standard GST rate for SAC code 998421.

SAC Code

998421

Description

Internet backbone services

New Rate

18 %
Standard

Old Rate

18 %

Notes

Internet backbone services are listed with a GST rate of 18% under heading 9984 and the new structure continues to keep these in the standard 18% services slab.

In everyday billing, service providers offering internet backbone services should apply 18% GST on taxable charges, mention SAC 998421 on invoices and follow the same code in GST records so that communication revenue is easy to track and explain.

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Explore More SAC Codes Under 9984

Practical Classification Guidance

For the 9984 group, this code will usually apply where the main offering is clearly internet backbone services. Other codes in the heading should be chosen when the service matches fixed line, mobile, pure data or another named category more closely.

Conclusion

This code is meant for internet backbone services where communication or content is delivered over the internet as a defined service. The code is generally taxed at 18% under GST, and using it consistently with the correct rate in % helps both providers and customers keep billing and compliance simple.

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.