SAC codes
SAC codes and GST rates for civil and interior contractors
A factory shed, a road stretch, the plumbing in a block of flats or the false ceiling in an office. Each contract has a SAC code under 9954 and usually a works contract rate.
In short
Contractors bill construction under SAC group 9954, such as 995414 for commercial buildings and 995421 for roads, usually at 18%. SimpleERP keeps the SAC code on each service and prints it on every running bill.
Illustration of GST tax invoice INV-2026-27-0213 to Ravi Stores with CGST 9% and SGST 9%, round off, a UPI QR code and the amount in words.
The data
The codes and usual rates
| SAC | Service | Usual GST rate | Notes |
|---|---|---|---|
| 995411 | Construction of residential buildings | 18% | Affordable housing and specified projects can differ; check |
| 995412 | Construction of other residential buildings (hostels, old age homes) | 18% | Check exemptions for charitable use |
| 995413 | Construction of industrial buildings | 18% | Factories, warehouses, sheds |
| 995414 | Construction of commercial buildings | 18% | Offices, malls, hotels, halls |
| 995415 | Construction of other non-residential buildings | 18% | Schools, hospitals; government work can differ, check |
| 995416 | Construction of other buildings | 18% | Buildings not classified elsewhere |
| 995419 | Repair, renovation and remodelling of buildings | 18% | Additions and alterations |
| 995421 | Roads, bridges, railways and runways | Check | Rates for government and public works vary; check |
| 995422 | Harbours, dams, waterworks and irrigation | Check | Government irrigation work can differ |
| 995424 | Local water, sewage pipelines and cables | 18% | Check where the client is a government body |
| 995428 | Other civil engineering works | 18% | Civil works not classified elsewhere |
| 995429 | Repair of civil engineering works | 18% | Check for government clients |
| 995461 | Electrical installation | 18% | Wiring, panels, fittings |
| 995462 | Plumbing and drain laying | 18% | Water and sanitary lines |
| 995463 | Heating, ventilation and air conditioning installation | 18% | HVAC and ducting |
| 995472 | Plastering | 18% | Interior and exterior |
| 995473 | Painting | 18% | Building painting work |
| 995474 | Floor and wall tiling | 18% | Tile laying |
| 995476 | Joinery and carpentry | 18% | Doors, windows, false ceilings and fit-outs |
Sources: CBIC: Customs tariff (HSN chapters), GST Council: rate changes effective 22 September 2025, CBIC: GST rates and notifications. Verified .
Which SAC codes does a contractor use most?
Construction services sit under SAC heading 9954. Buildings are 99541, split by the kind of building: residential, industrial, commercial and others, with 995419 for repairs and renovation. Civil works such as roads, bridges, pipelines and plants are 99542, with 995429 for their repair. Installation work such as electrical, plumbing and HVAC is 99546, and finishing such as plastering, painting, tiling and carpentry is 99547.
When a contractor supplies both material and labour on immovable property, the contract is usually a works contract, taxed as a service under these codes. See works contract and labour contract for single-code detail.
How to check a rate before billing
For a private client, most works contracts sit at 18%. The exceptions turn on who the client is and what is being built, so check before you quote a government body or a housing project.
- Private commercial and industrial work is usually 18%.
- Government, local authority and public works have carried lower rates or exemptions under separate entries; check the current notification.
- Affordable housing and specified residential projects can take a lower rate; check with your CA.
- Pure labour contracts for certain housing schemes can be exempt. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.
HSN on invoices and the GSTR-1 HSN summary in SimpleERP
A contractor's running bills are service invoices. In SimpleERP each kind of work is a service product with its SAC and rate, and the site address goes on the invoice as the ship-to address.
- SAC per service: civil works, plumbing and painting each carry their own code.
- Place of supply follows the site for work on immovable property, so a site in another state changes the tax heads.
- HSN summary report groups the month's running bills by SAC and rate for GSTR-1, exportable to CSV.
- Material sold separately carries its own HSN code on a separate line.
Illustration of a profit and loss statement for April to September 2026 with net profit of ₹4,12,800, a GST summary and the lock date.
Inputs and input tax credit for contractors
Cement, steel, pipes, tiles, hired machinery and subcontractors all carry GST that a contractor can usually claim against the tax on running bills. Credit on goods used to build your own immovable property is blocked, so keep your own office or godown work separate.
- Material bills record the supplier's GSTIN, HSN and tax for the GSTR-2B check.
- Subcontractor bills carry the same 9954 codes and are claimed as credit.
- Site expenses such as diesel are claimed through expense claims; diesel itself carries no GST credit.
- The purchase register lists material and subcontractor credit by rate, site by site.
Honest limits
Not included yet
- Measurement books and contract-wise billing against a work order value
- Retention money held back on running bills
FAQ
Questions, answered
What is the SAC code for construction work?
Construction services fall under SAC heading 9954. Buildings are 995411 to 995419, by building type, and civil works such as roads and pipelines are 995421 to 995429. Installation and finishing work have their own codes under 99546 and 99547. Confirm the code for each contract with your CA.
What is the GST rate on a works contract?
A works contract for a private client is usually taxed at 18%. Some works for government bodies, local authorities and affordable housing have carried lower rates or exemptions under separate entries. Rates change, so confirm yours with your CA or the GST portal before you quote.
What is the SAC code for interior work?
Interior fit-out by a contractor usually falls under the finishing codes: 995476 for joinery and carpentry, 995473 for painting and 995474 for tiling, commonly at 18%. Interior design advice without execution sits under 998391. Pick the code that matches the work billed.
Can SimpleERP bill a running bill against a contract?
SimpleERP raises each running bill as a GST invoice with the SAC code, rate and site address. It does not hold contract values, measurement books or retention as separate records, so track the contract value outside and bill each stage as an invoice.
Related
Keep reading
GST billing for contractors
Running bills as invoices against the contract's sales order, SAC 9954 lines, and place of supply taken from the site address.
Read moreConstruction and contractors
Quotations and SAC-coded invoices, material per site, payroll with advances and site expense claims.
Read moreSAC code
The code that classifies services for GST, as HSN codes do for goods.
Read more
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