SAC codes
SAC code for works contract: 995414
A works contract supplies goods and labour as one job on immovable property. Here is the usual code for commercial work, the rate and the exceptions.
In short
A works contract for a commercial building is billed under SAC 995414, usually at 18% GST. In SimpleERP each running bill carries the code, and a ship-to address per site sets 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 995414 at a glance
| Item | Value |
|---|---|
| 6-digit SAC | 995414: Construction services of commercial buildings, such as offices, showrooms, malls and hotels |
| 4-digit group | 9954 |
| Chapter 99 heading | Construction services |
| Usual GST rate | 18% for most private works contracts |
| Reverse charge | Forward charge for most suppliers. |
| Exemption | Some works for government bodies are exempt or concessional, as notified. |
| Who typically bills it | Civil contractors, fit-out contractors and builders |
Sources: CBIC: classification of services (SAC), CBIC: GST rates and notifications. Verified .
Which SAC code goes on a works contract invoice?
The usual SAC code for works contract is 995414: construction services of commercial buildings, such as offices, showrooms, malls and hotels. It sits in group 9954, construction services, under chapter 99, the chapter that holds every service code in the GST classification. Heading 9954 splits construction by the kind of building, and 995414 covers commercial buildings. Residential, industrial and repair work have their own codes in the same group.
What GST rate applies to works contract?
Most works contracts for private clients are charged at 18% GST under forward charge. Some contracts for government bodies have had different rates. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.
- Residential buildings go under 995411, industrial buildings under 995413
- Repair, renovation and alteration of buildings sits under 995419
- Some government works carried concessional rates, and the September 2025 changes touched these entries; check
A works contract invoice line in SimpleERP
Kaveri Builders sends Lakshmi Steel Furnitures running bill 3 for its showroom extension, ₹6,00,000 for work done this month. The line carries SAC 995414 at 18%, so the bill shows CGST ₹54,000 and SGST ₹54,000.
- SAC 995414 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?
Works contracts are under forward charge, as notified, so the contractor charges GST. There is no [reverse charge](/glossary/reverse-charge-mechanism) entry for them; the exceptions are rate and exemption entries for some government work.
- Pure labour contracts for some government and housing schemes are exempt, as notified; check
- Flats sold by a promoter follow their own notified scheme, not the 18% works contract rate
- Input tax credit on works contracts for the client's own building is restricted; the client's CA will check
FAQ
Questions, answered
Is SAC mandatory on my works contract invoice?
Yes, on B2B bills: four digits (9954) up to ₹5 crore turnover and six digits above it. Contractors with mixed projects find six digits useful, since residential and commercial work then group apart in the HSN summary.
Can I use 9954 instead of 995414?
Up to ₹5 crore turnover, 9954 is enough on B2B invoices. Above it, use 995414 or whichever six-digit code matches the building. The six digits matter most when one contractor builds both homes and offices.
Does reverse charge apply to works contract?
Supply of labour alone through an agency is under 998519, forward charge, as notified. A works contract supplies goods and services together, also under forward charge. Neither is under reverse charge, though some government contracts have their own entries.
What if my client is in another state?
For a works contract the place of supply is the site, not the client's office. A Bengaluru company's building in Coimbatore is CGST and SGST for a Tamil Nadu contractor. In SimpleERP a ship-to address per site sets the place of supply.
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
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