GST Rate GuideSAC 998313

SAC Code for Annual Maintenance Charges (AMC) on Software

The SAC code for software annual maintenance charges (AMC) and technical support is 998313 — “Information technology (IT) consulting and support services” — taxed at 18% GST. This guide covers the correct SAC codes for software maintenance, helpdesk and support, hardware AMC, custom development, SaaS and exports, with Input Tax Credit rules.

Quick answer

Software AMC / maintenance & support → SAC 998313 → 18% GST. Use SAC 998713 only for physical hardware/computer AMC. Full ITC is available for business use; exported maintenance is zero-rated.

998313

Software AMC SAC

18%

GST Rate

9987 / 9983

Heading Group

998713

Hardware AMC

SAC Codes for Software Maintenance & Support

Software AMC & Support — SAC 998313 (18%)

Annual maintenance contracts for software — bug fixes, patches, version updates, helpdesk and remote support — are classified as Information Technology consulting and support services under SAC 998313 at 18% GST. This is the code you put on a software AMC invoice.

Technical Support & Helpdesk — 998313

Standalone technical support, troubleshooting, break-fix and helpdesk services for software also fall under SAC 998313 at 18%. AMC and support share the same code because both are IT support services.

Custom Software Development — 998314

Building or customising software is a different service — SAC 998314 (IT design and development services) at 18%. If your contract bundles development plus maintenance, split the SAC codes per line item where possible.

SaaS & Cloud Subscriptions — 998315/998316

Hosted/subscription software is taxed as a service at 18% under SAC 998315 (hosting & IT infrastructure provisioning) or 998316 (IT infrastructure & network management). Maintenance bundled into a SaaS fee follows the subscription's classification.

Hardware / Computer AMC — 998713

When the AMC covers physical hardware, use SAC 998713 (maintenance & repair of computers and peripherals) or 998717 (commercial/industrial machinery), both at 18%. A combined hardware + software AMC is a composite supply taxed at the principal supply's rate.

Exported Software Maintenance — Zero-Rated

Software maintenance and support supplied to a recipient outside India is an export of services — zero-rated (0% GST) with full ITC refund — provided payment is in convertible foreign exchange and a Letter of Undertaking (LUT) is filed.

SAC Code & GST Rate Matrix — Software Maintenance

ServiceGST RateTypeSAC Code
Software AMC / annual maintenance contract18%ServiceSAC 998313
Software technical support & helpdesk18%ServiceSAC 998313
IT consulting & support services18%ServiceSAC 998313
Custom software development18%ServiceSAC 998314
SaaS / cloud subscription18%ServiceSAC 998315/16
AMC for computers & peripherals (hardware)18%ServiceSAC 998713
AMC for commercial/industrial machinery18%ServiceSAC 998717
Software maintenance exported (with LUT)0%Zero-ratedSAC 9983

Need a different service? Use our SAC code search tool to look up any of 680+ Service Accounting Codes, or read the GST on IT & Software Services guide.

Frequently Asked Questions

What is the SAC code for annual maintenance charges (AMC) for software?
The SAC code for software AMC and technical support is 998313 — "Information technology (IT) consulting and support services." It attracts 18% GST. This covers annual maintenance contracts, bug fixes, patches, updates, helpdesk and remote support for software products and applications.
What is the GST rate on software maintenance charges?
Software maintenance and AMC attract 18% GST under SAC 998313. The rate is the same whether the support is billed monthly, quarterly or as a yearly contract, and full Input Tax Credit (ITC) is available when the service is used for business.
Is the AMC SAC code 998313 or 9987?
9987 is the broad heading group "Maintenance, repair and installation (except construction) services," used for repair of physical goods. For software maintenance and IT support specifically, the correct 6-digit code is 998313 (IT consulting and support services), which sits under the 9983 IT-services heading. Use 9987-series codes (e.g. 998713) only when you are physically maintaining hardware.
What SAC code applies to software technical support and helpdesk services?
Technical support, helpdesk, remote troubleshooting and break-fix services for software fall under SAC 998313 at 18% GST — the same code as software AMC, because both are IT support services.
What is the SAC code for hardware or computer maintenance (AMC)?
Physical maintenance and repair of computers and peripheral equipment is SAC 998713 (18% GST), and maintenance of commercial/industrial machinery is SAC 998717. Use these when the AMC covers physical hardware rather than software. A combined hardware + software AMC is classified by its principal supply.
How should a combined software + hardware AMC be classified under GST?
A single AMC that bundles software support and hardware maintenance is a composite supply. It is taxed at the rate of the principal supply — the dominant element of the contract. Both software support (998313) and computer hardware repair (998713) are taxed at 18%, so the effective GST is 18% either way; the chosen SAC should reflect the principal component.
Is GST charged on AMC for software exported outside India?
Software maintenance and support supplied to a recipient outside India is treated as an export of services and is zero-rated (0% GST) when payment is received in convertible foreign exchange and a Letter of Undertaking (LUT) is filed. Full ITC remains available and is refundable.
Can Input Tax Credit be claimed on software AMC payments?
Yes. GST paid at 18% on software AMC and support (SAC 998313) is fully creditable as ITC when the software is used for business purposes, subject to the usual ITC conditions under Section 16 of the CGST Act.

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