An IT services invoice should separate support, infrastructure management, hosting and project work, because each has its own SAC: 998313 for IT consulting and support, 998315 for hosting, 998316 for infrastructure and network management. All are taxed at 18%. Show the service period for annual maintenance contracts, ticket or device counts for managed services, and any hardware supplied separately with its own HSN and rate, since goods sold alongside services keep their own classification.
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Firewall configuration and security hardening, one-time project
998316
1 OTH
35,000.00
35,000.00
18%
On-site engineer visit beyond AMC scope
998313
4 NOS
2,500.00
10,000.00
18%
Taxable value
₹1,95,000.00
GST (CGST + SGST, or IGST if inter-state)
₹35,100.00
Invoice total
₹2,30,100.00
Sample prices are illustrative. Check the GST rate for your exact item or service before billing.
Extra fields a it services company invoice needs
Contract or AMC period
An annual maintenance contract runs from one date to another. Printing the start and end dates helps the customer track renewals and shows which month's tax the invoice belongs to.
Devices or users covered
Managed services are priced per endpoint, server or user. Listing counts lets the customer verify the bill and makes mid-term additions easy to invoice as separate lines.
Service level reference
Many contracts reduce fees when uptime targets are missed. Quoting the SLA report or credit applied shows how the billed amount was reached and avoids a separate credit note later.
Ticket or call log summary
For pay-per-call support, the number of tickets resolved in the period supports the quantity billed and answers the first question every IT manager asks.
Hardware lines with HSN
When the company also supplies laptops, switches or cables, those are goods with their own HSN and GST rate. Keeping them as separate lines prevents goods being billed under a service code.
Data centre location for hosting
For hosting services, the facility and region help the customer with data-localisation checks and do not change GST, but they reduce compliance questions from regulated clients.
Standard GST invoice fields
Rule 46 of the CGST Rules applies to every tax invoice, including this one:
✓Supplier name, address and GSTIN
✓Consecutive invoice number (max 16 characters, unique for the year)
The SAC list splits IT services into consulting and support (998313), design and development (998314), hosting and infrastructure provisioning (998315), infrastructure and network management (998316) and other IT services (998319). None of these was touched by the September 2025 rate changes, so all stay at 18%. A single invoice can therefore carry several codes at the same rate. Splitting them correctly matters for the HSN summary in GSTR-1, which large taxpayers must report at six digits, and for clients that run analytics on their spend by category.
Mixed supplies of hardware and service
An IT firm that sells a firewall appliance and installs it is usually making a composite supply where the principal supply decides the rate, or two separate supplies if priced separately. Where hardware and service are priced separately on the invoice, each takes its own rate: networking equipment goes under its own HSN at the applicable goods rate, and installation at 18%. Printing them as separate lines with separate codes is the cleanest way to show the supply was not a single bundled service.
E-invoicing and e-way bills
Once the company's aggregate turnover crosses ₹5 crore, every B2B invoice must carry an IRN and QR code from the Invoice Registration Portal. Pure services need no e-way bill, but when you move hardware worth more than ₹50,000 to a client site, an e-way bill is needed for that consignment even if the invoice also carries service lines.
Annual contracts billed in advance
Collecting a full year of AMC fees upfront is common. GST is due on the invoice raised at the start, not spread over the year. If the client cancels mid-term, issue a credit note for the unused portion within the time allowed rather than adjusting the next year's invoice.
Pass-through cloud and licence costs
IT firms often resell cloud credits or third-party licences inside a managed services contract. If the firm buys these in its own name and recharges them, they are part of its taxable supply and carry GST on the full recharged amount, with the firm taking credit on the purchase. Only where the client contracts directly with the cloud provider and the firm merely pays on the client's behalf can the amount be treated as a pure-agent cost outside the taxable value. Most resale arrangements fail that test, so treat recharged licences as a normal taxable line with the code that matches what is supplied, and keep the vendor invoice on file to support the input credit.
Common billing mistakes
✕Billing a laptop supplied with setup under SAC 998313 at 18%, hiding the goods line that should carry its own HSN.
✕Spreading GST on an annual AMC across twelve months when the full-year invoice was raised and paid on day one.
✕Ignoring SLA penalties on the invoice and settling them by side discounts, so the books never show the reduced taxable value.
✕Not generating an e-invoice for a corporate client after the company's turnover crossed ₹5 crore.
IT Services Company GST invoice: FAQ
What GST rate applies to IT support services?
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IT consulting and support under SAC 998313, and network and infrastructure management under 998316, attract 18% GST with full input tax credit.
Is software development billed under the same code?
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No. Custom software design and development goes under SAC 998314; support after delivery goes under 998313. Both are taxed at 18%.
Do I need an e-way bill for on-site support?
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Not for the service itself. An e-way bill is needed only when goods, such as replacement hardware, are moved and the consignment value exceeds ₹50,000.
How do I bill a foreign client for remote IT support?
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If the client is outside India and payment comes in foreign exchange, bill it as an export of services under LUT without IGST, quoting the LUT reference.
Should hardware and support be on one invoice?
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They can be, provided each is a separate line with its own HSN or SAC and its own rate. Separate pricing shows the supplies are distinct and stops goods being taxed at a service rate or the other way round.