GST for software and SaaS businesses

Software services and SaaS billing look simple, but they raise recurring GST questions around SAC classification, subscription timing, exports and place of supply.

Domestic billing

For Indian clients, most software and SaaS supplies are invoiced as services with GST charged at the applicable rate, usually 18%.

Overseas clients

When the client is outside India, export-of-services rules become relevant. That is where LUTs, foreign remittance, and zero-rated treatment enter the picture.

Recurring subscriptions

Keep renewal dates, invoice periods and payment records consistent. Subscription businesses suffer when tax and revenue timelines drift apart.