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IT Services18% GST RateUpdated July 2026

Calculate GST for Software & SaaS

Calculate GST on SaaS subscriptions, software licenses, custom development, and cloud hosting.

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Quick Summary

HSN/SAC Code#9973
Tax CategoryIT Services
ITC EligibilityEligible for businesses using software or SaaS for operational purposes
Effective DateJuly 1, 2017
Applicable Tax
18%
Standard GST RateHSN Code 9973

GST Rate Explanation

Software applications, downloads, and cloud services (SAC 9973 / HSN 8523) are categorized as intellectual property services and carry a standard 18% rate.

Calculation Mode
Net Amount (Before Tax)₹10,000.00
CGST (Central Tax) (9.0%)₹900.00
SGST (State Tax) (9.0%)₹900.00
Total GST (18%)₹1,800.00
Gross Amount₹11,800.00

Visual Tax Split & Collection Rules

Intrastate Split Allocation
CGST (Central Tax): 9.0%
SGST (State Tax): 9.0%

Within State (CGST + SGST)

When supply is within the same state (intrastate), the CGST and SGST are collected. The total tax is split 50/50 between Central and State governments.

Across States (IGST)

When supply spans across states (interstate), a single Integrated GST of 18% is collected in full by the Central government before allocation.

GST Rate Structure Slabs

Tax SlabCGST (Central)SGST (State)IGST (Integrated)Notes
0%0.0%0.0%0.0%Exempted / Nil rated goods
5%2.5%2.5%5.0%Essential items & services
12%6.0%6.0%12.0%Standard reduced rate items
18%9.0%9.0%18.0%Standard general rate items
28%14.0%14.0%28.0%Luxury / Sin goods & services

GST Calculation Examples

Monthly SaaS subscription fee

Add GST (Exclusive)

Formula: Amount + (Amount × Rate%)

Base Amount: ₹1,500.00

GST (18%): ₹270.00

Total: ₹1,770.00

Remove GST (Inclusive)

Formula: Amount − (Amount / (1 + Rate%))

Total Amount: ₹1,500.00

Base Amount: ₹1,271.19

GST Included: ₹228.81

Enterprise software custom development contract

Add GST (Exclusive)

Formula: Amount + (Amount × Rate%)

Base Amount: ₹1,20,000.00

GST (18%): ₹21,600.00

Total: ₹1,41,600.00

Remove GST (Inclusive)

Formula: Amount − (Amount / (1 + Rate%))

Total Amount: ₹1,20,000.00

Base Amount: ₹1,01,694.92

GST Included: ₹18,305.08

Frequently Asked Questions

Government References & Notifications

Tax Disclaimer Notice

Export of software services to overseas clients is zero-rated (0% GST) subject to filing a LUT (Letter of Undertaking).

Last updated: July 2026