GST rates and HSN code for Software products.
| Chapter | Description | HSN Code | Rate (%) | CESS (%) | Effective Date | Rate Revision |
|---|---|---|---|---|---|---|
| Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles | Discs, Tapes, Solid-State Non-Volatile Storage Devices, Smart Cards And Other Media For The Recording Of Sound Or Of Other Phenomena, Whether Or Not Recorded, Including Matrices And Masters Production Of Discs, But Excluding Products Of Chapter 37 – Other | 85238020 | 18% | – | 01/07/2017 | – |
| Discs, Tapes, Solid-State Non-Volatile Storage Devices, Smart Cards And Other Media For The Recording Of Sound Or Of Other Phenomena, Whether Or Not Recorded, Including Matrices And Masters Production Of Discs, But Excluding Products Of Chapter 37 – Other | 85238090 | 18% | – | 01/07/2017 | – | |
| Records, Tapes And Other Recorded Media For Sound Or Other Similarly Recorded Phenomena, Including Matrices And Masters For The Production Of Records, But Excluding Products Of Chapter 37 – Other Magnetic Tapes: – Of A Width Exceeding 4 Mm But Not Exceedi | 85245220 | 18% | – | 01/07/2017 | – | |
| Printed books, newspapers, pictures and other <strong>products</strong> of the printing industry; manuscripts, typescripts and plans | Other Printed Matter, Including Printed Pictures And Photographs – Other : Other : Hard Copy (Printed) Of Computer Software | 49119910 | 18% | – | 01/07/2017 | – |
| Services | Licensing Services For The Right To Use Other Intellectual Property Products And Other Rescources N.E.C | 997339 | 18% | Nil Provided that Director (Sports), Ministry of Youth Affairs and Sports certifies that the services are directly or indirectly related to any of the events under FIFA U-17 Women’s World Cup 2020. | 1/01/2019 25/01/2018 1/07/2017 | – |
| Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks | Synthetic Organic Colouring Matter, Whether Or Not Chemically Defined; Preparations As Specified In Note 3 To This Chapter Based On Synthetic Organic Colouring Matter; Synthetic Organic Products Of A Kind Used As Fluorescent Brightening Agents Or As Lumin | 32041552 | 18% | – | 01/07/2017 | – |
| Other Colouring Matter; Preparations As Specified In Note 3 To This Chapter, Other Than Those Of Heading 3203, 3204 Or 3205; Inorganic Products Of A Kind Used As Luminophores, Whether Or Not Chemically Defined – Pigments And Preparations Based On Titanium | 3206 | 18% | – | 01/07/2017 | – | |
| Synthetic Organic Colouring Matter, Whether Or Not Chemically Defined; Preparations As Specified In Note 3 To This Chapter Based On Synthetic Organic Colouring Matter; Synthetic Organic Products Of A Kind Used As Fluorescent Brightening Agents Or As Lumin | 32041246 | 18% | – | 01/07/2017 | – | |
| Synthetic Organic Colouring Matter, Whether Or Not Chemically Defined; Preparations As Specified In Note 3 To This Chapter Based On Synthetic Organic Colouring Matter; Synthetic Organic Products Of A Kind Used As Fluorescent Brightening Agents Or As Lumin | 32041563 | 18% | – | 01/07/2017 | – | |
| Synthetic Organic Colouring Matter, Whether Or Not Chemically Defined; Preparations As Specified In Note 3 To This Chapter Based On Synthetic Organic Colouring Matter; Synthetic Organic Products Of A Kind Used As Fluorescent Brightening Agents Or As Lumin | 32041482 | 18% | – | 01/07/2017 | – | |
| Iron and steel | Other Alloy Steel In Ingots Or Other Primary Forms; Semi-Finished Products Of Other Alloy Steel – Other : Other : Billets | 72249091 | 18% | – | 01/07/2017 | – |
| Flat-Rolled Products Of Stainless Steel, Of A Width Of 600 Mm Or More – Not Further Worked Than Cold-Rolled (Cold Reduced) : Of A Thickness Of 0.5 Mm Or More But Not Exceeding 1 Mm : Other | 72193490 | 18% | – | 01/07/2017 | – | |
| Pharmaceutical <strong>products</strong> | Medicaments (Excluding Goods Of Heading 3002, 3005 Or 3006) Consisting Of Mixed Or Unmixed Products For Therapeutic Or Prophylactic Uses, Put Up In Measured Doses (Including Those In The Form Of Transdermal Administration Systems) Or In Forms Or Packings | 30041090 | 12% | – | 01/07/2017 | – |
| Medicaments (Excluding Goods Of Heading 3002, 3005 Or 3006) Consisting Of Mixed Or Unmixed Products For Therapeutic Or Prophylactic Uses, Put Up In Measured Doses (Including Those In The Form Of Transdermal Administration Systems) Or In Forms Or Packings | 30041040 | 12% | – | 01/07/2017 | – | |
| Medicaments (Excluding Goods Of Heading 3002, 3005 Or 3006) Consisting Of Mixed Or Unmixed Products For Therapeutic Or Prophylactic Uses, Put Up In Measured Doses (Including Those In The Form Of Transdermal Administration Systems) Or In Forms Or Packings | 30045035 | 12% | – | 01/07/2017 | – | |
| Immunological Products, Mixed, Not Put Up In Measured Doses Or In Forms Or Packings For Retail Sale | 30021400 | 12% | – | – | – | |
| Medicaments (Excluding Goods Of Heading 3002, 3005 Or 3006) Consisting Of Mixed Or Unmixed Products For Therapeutic Or Prophylactic Uses, Put Up In Measured Doses (Including Those In The Form Of Transdermal Administration Systems) Or In Forms Or Packings | 30049041 | 12% | – | 01/07/2017 | – | |
| Essential oils and resinoids, perfumery, cosmetic or toilet preparations | Essential Oils (Terpeneless Or Not), Including Concretes And Absolutes; Resinoids; Extracted Oleoresins; Concentrates Of Essential Oils In Fats, In Fixed Oils, In Waxes Or The Like, Obtained By Enfleurage Or Maceration; Terpenic By-Products Of The Deterpe | 33012928 | 18% | – | 01/07/2017 | – |
| Lac; gums, resins and other vegetable saps and extracts | Vegetable Saps And Extracts; Pectic Substances, Pectinates And Pectates; Agar-Agar And Other Mucilages And Thickeners, Whether Or Not Modified, Derived From Vegetable Products Mucilages And Thickeners, Whether Or Not Modified, Derived From Vegetable Produ | 13023220 | 18% | – | 01/07/2017 | – |
| <strong>Products</strong> of animal origin, not elsewhere spcified or inculded | Animal Products Not Elsewhere Specified – Or Included; Dead Animals Of Chapter 1 Or 3, – Unfit For Human Consumption – Other : – Products Of Fish Or Crustaceans, Molluscs – Or Other Aquatic Invertebrates; Dead Animals – Of Chapter 3 : – Other | 05119190 | 5% | – | 01/07/2017 | – |
In the digital age, software is ubiquitous, powering everything from our smartphones to complex industrial systems. For businesses involved in the sale or licensing of software products in India, understanding the correct Harmonized System of Nomenclature (HSN) code and the applicable Goods and Services Tax (GST) rate is a critical aspect of compliance. The classification of software under GST can be nuanced, depending on whether it’s treated as “goods” or “services” and how it’s delivered.
When software is supplied on physical media like CDs, DVDs, or USB drives, or as pre-packaged, “off-the-shelf” software, it is generally treated as “goods” under GST. This distinction is crucial for HSN code application.
The primary HSN chapter for such software is Chapter 85: Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles.
Specifically, the HSN codes that apply to software on physical media are often found under:
The landscape shifts significantly when software is delivered as a service, is customized, or involves licensing intellectual property rights. In these cases, software is treated as a “service” under GST, and Service Accounting Codes (SAC codes) from Chapter 99: Services are applicable.
Navigating the GST landscape for software requires a clear understanding of your specific offering. Always refer to the latest GST notifications and seek professional advice for complex scenarios to ensure accurate compliance.
The GST rate for most software products and services in India is 18%.
Pre-packaged software sold on a disc typically falls under HSN code 85238020.
The GST rate for software on physical media is 18%.
The GST rate for custom software development services is 18%.
Software licensing services, where you gain the right to use software, generally fall under SAC code 997339.
The distinction exists because software can be supplied as a tangible product (goods) or as an intangible right to use or a custom development (services), leading to different HSN/SAC classifications and GST implications.
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