SAC codes
SAC code for fabrication services: 998873
When the customer sends the steel and you cut, bend, weld or coat it, you supply a manufacturing service, not goods.
In short
Fabrication on steel owned by the customer is a job work service under SAC 998873, commonly at 18%, with lower notified entries for some job work. SimpleERP prints the SAC on the line and splits CGST and SGST or IGST.
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
SAC 998873 at a glance
| Item | Value |
|---|---|
| 6-digit SAC | 998873 |
| 4-digit group | 9988: manufacturing services on physical inputs (goods) owned by others |
| Chapter 99 heading | Other fabricated metal product manufacturing and metal treatment services |
| Usual GST rate | Commonly 18%; some job work entries for registered principals carry lower rates (as notified; check the GST portal) |
| Reverse charge | Forward charge for most suppliers: the fabricator charges GST |
| Exemption | No general exemption; when you supply the steel too, it is a sale of goods with an HSN code |
| Who typically bills it | Fabrication shops, laser cutters, powder coaters, platers and welding job workers |
Sources: CBIC: classification of services (SAC), CBIC: GST rates and notifications, GST Council: rate changes effective 22 September 2025. Verified .
Which SAC code goes on a fabrication services invoice?
Use 998873, other fabricated metal product manufacturing and metal treatment services, when the material belongs to your customer. It sits in group 9988, manufacturing services on physical inputs (goods) owned by others, under chapter 99 (services). Cutting, bending, welding, powder coating and plating on the customer's steel all fit.
The test is ownership of the material. If you buy the steel and sell a finished frame, you sell goods under an HSN code such as 7308 or 9403. Lakshmi Steel Furnitures in Coimbatore, Tamil Nadu, sends cut sheets to a powder coating shop that bills the coating as a service under 998873, and the sheets travel both ways on job-work challans.
What GST rate applies to fabrication services?
Fabrication on goods owned by others is commonly taxed at 18%. Job work has its own entries in the rate notification, and some, for named goods and for work done for a registered principal, carry lower rates; several changed on 22 September 2025. A ₹40,000 powder coating bill at 18% inside your state carries ₹3,600 CGST and ₹3,600 SGST. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.
- Steel owned by the customer: service under 998873
- Steel bought by you and sold as a product: goods under its HSN code
- Job work for a registered principal: check the job work entry for those goods
- General job work on other materials has its own page
A fabrication services invoice line in SimpleERP
Save the work as a service with SAC 998873 and a unit such as Kg, Nos or Sq m. Bill by weight or piece count, and mention the customer's challan number in the description.
- SAC 998873 prints on the job work line
- Place of supply picks CGST plus SGST or IGST from the customer's state
- The HSN/SAC summary for GSTR-1 keeps job work and goods sales apart
- Goods sales on the same invoice carry their HSN codes
Illustration of the keyboard-first invoice editor with a focused line, live tax totals and shortcut hints.
When is reverse charge or an exemption involved?
Fabrication job work is under forward charge, and there is no general exemption. The questions that matter are classification and rate: whether the material is the customer's, and whether a lower job work entry applies to those goods for a registered principal. The principal sends the material on a delivery challan; the job worker bills only the processing.
- Forward charge on the fabricator's invoice
- Material comes in on the principal's delivery challan, not an invoice
- Scrap left over belongs to the principal unless agreed otherwise
- Lower job work rates depend on the goods, so check the entry
FAQ
Questions, answered
The customer sends steel sheets and I add my own bolts. Is it still job work?
Small consumables usually do not change the nature of the work, so it stays a service under 998873. If you add significant material of your own, the supply can become goods. Draw the line with your CA and keep it consistent across customers.
Which rate do I use: 18% or a lower job work rate?
It depends on the goods you work on and whether the principal is registered. Fabrication outside the named job work entries is commonly 18%, and several entries changed from 22 September 2025. Check the current rate notification for your goods before you bill.
Do I need to issue a delivery challan when I return the goods?
The material belongs to the principal, so it moves on challans rather than invoices, and the principal usually issues the challan. SimpleERP does not print job-work challans yet, so keep them in your existing format and quote the challan number on your service invoice.
I sell my own fabricated racks and also do job work. How do I keep them apart?
Save racks as goods with their HSN code and job work as a service with SAC 998873. The same invoice can carry both, each line with its own code and rate, and the HSN/SAC summary shows them separately.
Related
Keep reading
GST billing for fabricators
Structural steel billed per kg from the weighbridge slip, tanks and frames per piece, and a shed order invoiced lot by lot.
Read moreGST invoice for services
A GST invoice format for services, with SAC codes and no stock columns, as a free Excel, Word and PDF download.
Read moreSAC code
The code that classifies services for GST, as HSN codes do for goods.
Read more
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