SAC codes
SAC code for solar installation: 995461
Installation billed alone and a full supply-and-install contract are taxed differently. Here is the code for the installation, the rate and the split rule.
In short
Solar installation billed on its own is usually under SAC 995461 at 18% GST. In SimpleERP the panels and inverter carry their HSN codes, the installation carries its SAC, and each line is taxed at its own rate.
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: Electrical installation services, including electrical wiring and fitting |
| 4-digit group | 9954 |
| Chapter 99 heading | Construction services |
| Usual GST rate | 18% on installation billed on its own |
| Reverse charge | Forward charge for most suppliers. |
| Exemption | No common exemption, as notified. |
| Who typically bills it | Rooftop solar installers and EPC contractors |
Sources: CBIC: classification of services (SAC), CBIC: GST rates and notifications. Verified .
Which SAC code goes on a solar installation invoice?
The usual SAC code for solar installation is 995461: electrical installation services, including electrical wiring and fitting. It sits in group 9954, construction services, under chapter 99, the chapter that holds every service code in the GST classification. We use 995461 because a rooftop system is wired into the building's electrical installation, which is construction work under 9954. Some installers use a code from heading 9987 for freestanding equipment, so confirm with your CA.
What GST rate applies to solar installation?
Installation billed as a separate service is usually charged at 18% GST. Supply of a solar system together with installation has followed a notified split instead. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.
- Under the notified rule for solar systems supplied with installation, 70% of the value has been treated as goods and 30% as service; check
- The rate on solar devices moved in the September 2025 changes, so check the goods rate before you quote
- Panels, inverters and structures sold on their own carry their own HSN codes
A solar installation invoice line in SimpleERP
Suryodaya Solar Systems installs and commissions a 10 kW rooftop system at Lakshmi Steel Furnitures and bills the installation separately at ₹15,000. The line carries SAC 995461 at 18%, so the invoice shows CGST ₹1,350 and SGST ₹1,350.
- SAC 995461 sits on the line from the saved service, so nobody types it per invoice
- Place of supply picks CGST and SGST for a client in your state, or IGST for one in another
- The HSN/SAC summary groups every line by code, ready for the GSTR-1 HSN table
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?
Solar installation is under forward charge, as notified: the installer charges GST. There is no [reverse charge](/glossary/reverse-charge-mechanism) entry for it, and no general exemption for rooftop systems.
- Government subsidy schemes change what the customer pays, not the GST on your invoice; check the scheme terms
- A combined supply-and-install contract should be priced and invoiced with the split your CA confirms
- Annual maintenance of a solar plant is a separate service with its own code
FAQ
Questions, answered
Is SAC mandatory on my solar installation invoice?
Yes, on B2B invoices: four digits (9954) up to ₹5 crore turnover and six digits above it. On a supply-and-install invoice each line needs its own code, HSN for the panels and SAC for the installation.
Can I use 9954 instead of 995461?
Up to ₹5 crore turnover, 9954 meets the rule on B2B invoices. Above it, use 995461 or the code your CA confirms. The full code keeps installation apart from civil work under 9954 in your HSN summary.
Does reverse charge apply to solar installation?
No. Solar installation is under forward charge, as notified, so your invoice carries the GST. If you hire labour through an agency, that agency charges you GST under 998519. Reverse charge is limited to notified services, such as security from non-corporate agencies.
What if my client is in another state?
Installation on a building takes the location of the property as the place of supply. A rooftop in Coimbatore is CGST and SGST for a Tamil Nadu installer, whatever the owner's registered state. In SimpleERP a ship-to address per site sets it.
Related
Keep reading
GST billing for solar installers
Rooftop quotations priced by kW that become GST invoices for panels, inverters and installation, with instalments tracked to the last rupee.
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
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