SAC codes
SAC code for installation services: 995461
Installation inside a building is a construction trade under 99546; installing a machine on a factory floor sits under 99873.
In short
Electrical installation work uses SAC 995461, with plumbing, HVAC and lift installation in the same 99546 family, usually at 18%. SimpleERP carries the code on each installation line, beside the HSN codes of any goods you supply.
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 995461 at a glance
| Item | Value |
|---|---|
| 6-digit SAC | 995461 (995462 plumbing, 995463 HVAC, 998732 machinery) |
| 4-digit group | 9954: construction services |
| Chapter 99 heading | Electrical installation services including electrical wiring and fitting services, fire alarm installation services |
| Usual GST rate | 18% (as notified; check the GST portal) |
| Reverse charge | Forward charge for most suppliers: the installer charges GST |
| Exemption | Pure labour installation for original works on a single residential unit is exempt as notified |
| Who typically bills it | Electrical, plumbing, HVAC and fire safety contractors, and equipment installers |
Sources: CBIC: classification of services (SAC), CBIC: GST rates and notifications. Verified .
Which SAC code goes on an installation services invoice?
For electrical work use 995461, electrical installation services including electrical wiring and fitting services, fire alarm installation services. It sits in group 9954, construction services, under chapter 99 (services), in the 99546 family of installation services: 995462 for water plumbing and drain laying, 995463 for heating, ventilation and air conditioning, 995466 for lifts and escalators.
Installing equipment that is not part of the building, such as a press or a conveyor, is 998732, installation services of industrial, manufacturing and service industry machinery and equipment. Volt Line Electricals in Salem, Tamil Nadu, wiring the new paint shop at Lakshmi Steel Furnitures, bills the wiring labour under 995461.
What GST rate applies to installation services?
Installation services are usually taxed at 18%. Wiring labour of ₹75,000 for a factory in your state carries ₹6,750 CGST and ₹6,750 SGST. When you supply the cables, switchgear and fittings as well, the job can become a works contract. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.
- Labour only: installation service under the 99546 code
- Material plus labour on a building: often a works contract
- Equipment sold with installation: the main supply usually decides the rate
- Machinery installation on a factory floor: 998732
An installation services invoice line in SimpleERP
Save Electrical installation as a service with SAC 995461 and the unit Nos, points or Sq ft. Goods you supply go on their own lines with their HSN codes.
- SAC 995461 prints on the installation line
- Place of supply picks CGST plus SGST or IGST; for building work it is the site's state
- The HSN/SAC summary for GSTR-1 keeps labour and material apart
- Goods lines take stock out of the godown when the invoice posts
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?
Installation work is under forward charge. The exemption that comes up is the same one labour contractors use: pure labour contracts of construction, erection, commissioning or installation of original works pertaining to a single residential unit, not part of a residential complex, are exempt as notified. Wiring a new independent house with the owner's material can qualify; a flat in a complex does not.
- Forward charge for business clients
- Single independent house, labour only: exempt as notified
- Repairs and rewiring of existing work are not original works
- Composite jobs with material: check the works contract entry
FAQ
Questions, answered
I sell a water pump and charge for installing it. Do I need two codes?
If the pump is the main supply and installation is incidental, the whole may be one composite supply taxed at the pump's rate. If you price and contract them separately, the pump takes its HSN code and the installation 995462 or the code your CA confirms. Decide by the contract.
Is wiring a new independent house exempt?
A pure labour contract for installation of original works on a single residential unit, not part of a residential complex, is exempt as notified. If you also supply the cables and switches, it is no longer pure labour and becomes taxable. Keep the contract that shows labour only.
My site is in Karnataka but my business is in Tamil Nadu. Which tax applies?
For work on a building the place of supply is where the building is, so a Tamil Nadu installer working on a Karnataka site charges IGST. If you have a registration in Karnataka, bill from that one instead. In SimpleERP each registration is a branch with its own GSTIN.
Which code do I use for installing machines in a factory?
Use 998732, installation services of industrial, manufacturing and service industry machinery and equipment, when the machine is not part of the building. Electrical work in the building that feeds the machine stays under 995461.
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 moreGST invoice for contractors
A free tax invoice format for works contracts and labour bills, with SAC 9954, the site address and place of supply.
Read moreSAC code
The code that classifies services for GST, as HSN codes do for goods.
Read more
Run your whole business from one simple place.
Seven days free. No card. Your first GST invoice in minutes.