GST for IT freelancers and software developers

Software development, IT support and SaaS work are supplies of services under GST. For most developers the picture is straightforward.

Rate and SAC code

IT and software development services are generally taxed at 18% GST, under SAC heading 9983 (IT design and development is 998314). The same rate applies whether you bill hourly, per project or as a retainer.

The export rule developers care about

If you build software for a client outside India and are paid in foreign currency, it is normally an export of services and zero-rated. File a LUT once a year and you can invoice foreign clients without charging IGST, while still claiming input tax credit on your costs. This is the single most valuable thing for a developer with overseas clients to get right.

Indian clients

For clients in India: same state means CGST + SGST, a different state means IGST. Add their GSTIN to the invoice if they are registered, so they can claim the credit.

Registration

Register once turnover crosses ₹20 lakh (₹10 lakh in special-category states). Many developers register earlier because foreign-remittance and B2B clients expect a GSTIN and a LUT in place.

Make a developer invoice free, no signup, with a UPI QR for your Indian clients.