This SAC chapter applies to service providers engaged in maintenance, repair, servicing, or installation of…
SAC 9951 – Construction Services
This heading covers construction-related services involving buildings, civil structures, installations, and associated works. Taxability depends on the nature of construction, type of recipient, and intended use of the structure, as prescribed under GST rate notifications.
Important Classification Notes
- Construction services are generally taxable at 18%, unless specifically notified otherwise.
- Concessional rates (e.g. 5% or 1%) may apply for specified residential or affordable housing projects, subject to conditions.
- Classification must be read with Notification No. 11/2017 – Central Tax (Rate) and subsequent amendments.
- Works contract services involving transfer of property in goods are deemed supply of services under GST.
SAC 9951 – Detailed Classification with GST Rate
| SAC | Technical Description | GST Rate |
|---|---|---|
| 995111 | Services involving the construction, erection, or completion of single or multiple residential buildings intended for use as dwelling units, including associated civil and structural works. | 18% |
| 995112 | Services involving the construction, erection, or completion of buildings other than residential buildings, including commercial, institutional, and mixed-use structures. | 18% |
| 995113 | Services relating to the construction of industrial buildings such as factories, manufacturing plants, workshops, and similar structures designed for industrial operations. | 18% |
| 995114 | Services relating to the construction of commercial buildings including offices, business centres, shopping complexes, malls, and other premises used for commercial activities. | 18% |
| 995115 | Services involving the construction of residential complexes comprising multiple dwelling units, apartments, or housing projects, including related civil works. | 18% |
| 995116 | Services relating to the construction of educational, institutional, or public utility buildings such as schools, colleges, hospitals, government buildings, and similar establishments. | 18% |
| 995117 | Services involving on-site assembly, erection, or installation of prefabricated buildings or structural components forming part of a building or civil structure. | 18% |
| 995118 | Specialised construction services including demolition, site preparation, earthmoving, excavation, drilling, foundation work, piling, and other preparatory or support activities. | 18% |
| SAC (8-Digit) | Technical Description | GST Rate | Conditions / Notes |
|---|---|---|---|
| 99511100 | General construction services of residential buildings | 18% | Other than projects eligible for concessional or exempt rates |
| 99511200 | General construction services of non-residential buildings | 18% | Includes commercial, institutional, and industrial buildings |
| 99511300 | Construction services of industrial buildings | 18% | Factories, plants, workshops, and similar structures |
| 99511400 | Construction services of commercial buildings | 18% | Offices, malls, business centres, and similar premises |
| 99511500 | Construction services of residential complexes | 18% | Subject to specific exemptions or concessional entries |
| 99511600 | Construction services of educational and institutional buildings | 18% | Includes schools, colleges, hospitals (construction only) |
| 99511700 | Assembly and erection services of prefabricated buildings | 18% | On-site assembly of prefabricated structures |
| 99511800 | Specialised construction services | 18% | Demolition, site preparation, excavation, drilling, and foundation work |
Note: Services Accounting Codes (SAC) are prescribed up to 6 digits under GST law.
The 8-digit format shown above is for presentation and system consistency only; taxability and classification are governed by the corresponding 6-digit SAC and applicable rate notifications.