GST on web hosting: rate, SAC code and TDS explained

Not tax advice: This guide is a general explanation based on official CBIC and Income Tax Department material as of October 2026. Tax rules, rates and section numbers change, and your treatment depends on your facts. Confirm with your chartered accountant before you book, claim or deduct anything.

The short version

• Hosting is a taxable service under GST. It is not exempt.
• SAC code: CBIC's classification scheme lists 998315 as "Hosting and information technology (IT) infrastructure provisioning services", within group 99831 (management consulting and information technology services).
• Rate: the GST Council's services rate schedule taxes services not specified elsewhere at 18%, which is the rate generally applied to IT services such as hosting. Always check the rate printed on your invoice.
• Split: within the same state, 18% is charged as CGST plus SGST. Between states, it is charged as IGST.
• TDS: practice varies, and the TDS sections were renumbered under the Income-tax Act, 2025 from 1 April 2026. Ask your CA.

What a SAC code is, and why it matters

GST classifies goods by HSN (Harmonised System of Nomenclature) codes and services by SAC (Services Accounting Code). Hosting is a service, so it has a SAC code. When people search for "web hosting HSN code", the answer is the SAC code.

The code matters for three reasons:

1. It appears on tax invoices, and GST invoicing rules require the HSN or SAC code on invoices, with the number of digits depending on the supplier's turnover.
2. It links the service to the correct rate entry.
3. It is reported in GST returns.

In CBIC's classification scheme, the codes near hosting are:

SAC	Description (CBIC classification scheme)
998313	Information technology (IT) consulting and support services
998314	Information technology (IT) design and development services
998315	Hosting and information technology (IT) infrastructure provisioning services
998316	IT infrastructure and network management services
998319	Other information technology services n.e.c.

Website design and development usually falls under a different code from hosting, so a combined invoice from an agency may show more than one SAC. Domain registration is classified by each supplier according to how they view the service; check the code on your registrar's invoice rather than assuming it matches hosting.

The GST rate on hosting

The GST Council's schedule of rates for services, published by CBIC, places "all other services not specified elsewhere" at 18% with full input tax credit. Hosting has no specific lower rate entry, so 18% is the rate you will normally see on hosting invoices.

GST rates are set by notification on the GST Council's recommendation and can be revised. Before relying on any rate, check the current rate notifications on the CBIC website and the rate printed on your invoice.

CGST, SGST and IGST

How the 18% is shown depends on the place of supply:

Situation	How 18% is charged
Supplier and recipient in the same state	9% CGST + 9% SGST
Supplier and recipient in different states	18% IGST

Example: a hosting bill with a taxable value of ₹2,388 attracts ₹429.84 of GST at 18%. Within a state, that appears as ₹214.92 CGST and ₹214.92 SGST. Between states, it appears as ₹429.84 IGST. The total payable is ₹2,817.84 either way.

What a correct hosting tax invoice shows

If you are GST registered and want to claim credit, check that the invoice includes:

• The supplier's name, address and GSTIN.
• Your legal name, address and GSTIN. Add these to your hosting account before the invoice is generated; many billing systems cannot change an invoice afterwards.
• Invoice number and date.
• Description of the service and the SAC code.
• Taxable value, rate, and the CGST, SGST or IGST amounts.
• Place of supply.

ODHOST note: ODHOST invoices are available in the ODHOST client area, and applicable taxes are shown at checkout. If you need particular details on your invoice, such as your GSTIN, open a support ticket before you order.

Input tax credit

A GST registered business can generally claim input tax credit on hosting used in the course of business, provided it holds a valid tax invoice, the service has been received, the supplier has reported the invoice and the other statutory conditions are met. Hosting for a personal blog, or for purposes outside the business, is a different matter. Your CA will know whether any restriction applies to your case.

Hosting from a foreign provider

If you pay a provider outside India in US dollars, there is usually no Indian GST on the invoice. That does not mean no GST applies:

• Registered businesses: CBIC's reverse charge list covers services supplied by a person in a non-taxable territory to a recipient in India. In that case the Indian business usually pays IGST itself under reverse charge and may then claim credit.
• Individuals and unregistered buyers: some online services from abroad are taxed under the OIDAR rules, where the foreign supplier is expected to charge GST.

These rules are technical. Show a foreign hosting bill to your CA rather than booking it as a plain expense. Our guide on hosting for an Indian business covers other differences between Indian and foreign providers.

TDS on web hosting: handle with care

TDS is where advice online is least consistent, so treat this section as orientation only.

Payments up to 31 March 2026 were governed by the Income-tax Act, 1961. Practitioners took different views on hosting payments: some treated them as payments for work under a contract (section 194C), some as fees for technical services (section 194J), some as rent for the use of equipment (section 194-I), and some as outside TDS altogether for standard, off the shelf hosting. Thresholds also meant many small hosting bills attracted no TDS in practice.

Payments from 1 April 2026 are governed by the Income-tax Act, 2025, which the Income Tax Department confirmed came into force on that date. Most non salary TDS provisions are consolidated in section 393 of the new Act, with payment types listed in tables instead of separate sections. The underlying question, which category a hosting payment falls into, has not gone away.

What to do:

1. Ask your CA to classify your hosting payments in writing and to note the relevant section 393 table entry and threshold.
2. Apply the same treatment consistently across hosting, domain and cloud bills.
3. If you deduct TDS, give the provider the TDS certificate so they can claim the credit.

We have deliberately not stated a TDS rate here, because the right rate depends on the classification your CA chooses.

A checklist for your accounts team

1. Add your GSTIN and legal name to the hosting account before ordering.
2. Check that the invoice shows a SAC code, the rate and the CGST, SGST or IGST split.
3. Confirm the place of supply is correct.
4. Book Indian hosting invoices for input tax credit if eligible.
5. Route foreign hosting bills to your CA for reverse charge treatment.
6. Get a written TDS position from your CA under the Income-tax Act, 2025.

For the full cost picture, including GST on top of hosting prices, see our guide on web hosting cost in India. Plan prices are on the pricing page, and the steps to pay an invoice and renew hosting are in our help centre.