[ Strategic Playbook ]

GST Registration Checklist for SaaS

Updated: March 22, 2026 • Programmatic Content

Selling SaaS globally from India requires a GST registration to claim Input Tax Credit (ITC). With Zero-rated supply benefits, your export of software services can effectively be tax-free—but only if you follow the exact registration and LUT filing process.

1. Selecting the Correct SAC Code

For Software as a Service (SaaS), the most common Service Accounting Code (SAC) is 998311 (Software development services) or 998314 (Information technology design and development services). Using the wrong code can lead to complex audit queries or misclassified tax rates later.

2. Documentation: Office Address Proof

A high-friction area in GST registration is the Proof of Business Address. If you operate out of a co-working space or a rented office, you must provide a valid Rent Agreement and a recent electricity bill for the entire building. The 'Principal Place of Business' must be verifiable.

3. Filing the Letter of Undertaking (LUT)

To export services without paying IGST upfront (and then waiting for a refund), you must file a Letter of Undertaking (LUT) at the start of every financial year (Form GST RFD-11). This allows you to export your SaaS at 0% tax, crucial for competitive global pricing.

4. E-Invoicing & Compliance for SaaS

Once registered, if your annual aggregate turnover exceeds the current notification threshold (e.g., ₹5 Crore), you must generate E-Invoices through the IRP portal. Failure to do so will result in an invalid invoice, and your B2B customers won't be able to claim ITC.