gst-on-construction-services

GST on Construction Services with SAC Codes

GST on Construction Services with SAC Codes

GST rate for all goods and services has been notified by the GST Council in May 2017 in preparation for the July 2017 launch of GST in India. GST Rates in India has been fixed at five slabs namely  nil, 0.25%, 3% 5%, 12%, 18% and 28%. However, the majority of the goods and services fall under the five brackets of 0%, 5%, 12%, 18%, 28%. In this article, we look at the SAC code and GST rate for construction services in India. Know more about GST rate for construction and building materials.

SAC Code for Construction Services

SAC code or Service Accounting Code is a classification methodology used by the Service Tax Department for classifying services in India. As GST rates for services are applicable based on SAC codes, service providers will have a simpler transition into GST. SAC Section 5 pertains to different types of construction services.

Click here to read on GST Rate for Machinery, Mechanical Equipment and Boilers

Construction Services of Buildings

The SAC code and GST rate applicable for construction services of buildings are as under:

SAC Code 995411: Construction services of a single dwelling or multi-dwelling or multi-storied residential buildings.

SAC Code 995412: Construction services of other residential buildings such as old age homes, homeless shelters, hostels etc.

SAC Code  995413 – Construction services of industrial buildings such as buildings used for production activities (used for assembly line activities), workshops, storage buildings and other similar industrial buildings.

SAC Code 995414 – Construction services of commercial buildings such as office buildings, exhibition & marriage halls, malls, hotels, restaurants, airports, rail or road terminals, parking garages, petrol and service stations, theatres and other similar buildings.

SAC Code 995415 – Construction services of other non-residential buildings such as educational institutions, hospitals, clinics including veterinary clinics, religious establishments, courts, prisons, museums and other similar buildings.

SAC Code 995416 – Construction Services of other buildings.

SAC Code 995419 – Services involving Repair, alterations, additions, replacements, renovation, maintenance or remodelling of the buildings covered above.

GST rate of 18% is applicable for construction of a complex, building, civil structure or a part thereof, intended for sale to a buyer, wholly or partly. The value of land is included in the amount charged from the service recipient. Further, input tax credit is allowed but no refund of overflow of input tax credit is allowed.

General Construction Services of Civil Engineering Works

The SAC code and GST rate applicable for general construction services of civil engineering works are as under:

SAC Code 995421 – General construction services of highways, streets, roads, railways and airfield runways, bridges and tunnels.

SAC Code 995422 –  General construction services of harbours, waterways, dams, water mains and lines, irrigation and other waterworks.

SAC Code 995423 – General construction services of long-distance underground/overland/submarine pipelines, communication and electric power lines (cables); pumping stations and related works; transformer stations and related works.

SAC Code 995424 – General construction services of local water & sewage pipelines, electricity and communication cables & related works.

SAC Code 995425 – General construction services of mines and industrial plants.

SAC Code 995426 – General Construction services of Power Plants and its related infrastructure.

SAC Code 995427 – General construction services of outdoor sport and recreation facilities.

SAC Code 995428 – General construction services of other civil engineering works.

SAC Code 995429 – Services involving Repair, alterations, additions, replacements, renovation, maintenance or remodelling of the constructions covered above.

The GST rate applicable for general construction services of civil engineering works is 18%.

Site Preparation Services

The SAC code and GST rate applicable for site preparation services are as under:

SAC 995431 – Demolition services.

SAC 995432 – Site formation and clearance services including preparation services to make sites ready for subsequent construction work, test drilling & boring & core extraction, digging of trenches.

SAC 995433 – Excavating and earthmoving services.

SAC 995434 -Water well drilling services and septic system installation services.

SAC 995435 -Other site preparation services n.e.c.

SAC 995439 – Services involving Repair, alterations, additions, replacements, maintenance of the constructions covered above.

The GST rate applicable for site preparation services is 18%.

Assembly and Erection of Prefabricated Constructions

The SAC code and GST rate applicable for assembly and erection of prefabricating constructions are as under:

SAC Code 995441 – Installation, assembly and erection services of prefabricated buildings.

SAC Code 995442 – Installation, assembly and erection services of other prefabricated structures and constructions.

SAC Code 995443 – Installation services of all types of street furniture (e.g., bus shelters, benches, telephone booths, public toilets, etc.).

SAC Code 995444 – Other assembly and erection services.

SAC Code 995449 – Services involving Repair, alterations, additions, replacements, maintenance of the constructions covered above.

The GST rate applicable for assembly and erection of prefabricated constructions is 18%.

Special Trade Construction Services

The SAC code and GST rate applicable for special trade construction services is as under:

SAC Code 995451 – Pile driving and foundation services.

SAC Code 995452 – Building framing & Roof Framing services.

SAC Code 995453 – Roofing and waterproofing services.

SAC Code 995454 – Concrete services.

SAC Code 995455 – Structural steel erection services.

SAC Code 995456 – Masonry services.

SAC Code 995457 – Scaffolding services.

SAC Code 995458 – Other special trade construction services.

SAC Code 995459 – Services involving Repair, alterations, additions, replacements, maintenance of the constructions covered above.

The GST rate applicable for special trade construction services is 18%.

Installation services

SAC Code 995461 – Electrical installation services including Electrical wiring & fitting services, fire alarm installation services, burglar alarm system installation services.

SAC Code 995462 – Water plumbing and drain laying services.

SAC Code 995463 – Heating, ventilation and air conditioning equipment installation services.

SAC Code 995464 – Gas fitting installation services.

SAC Code 995465 – Insulation services.

SAC Code 995468 – Other installation services.

SAC Code 995469 – Services involving Repair, alterations, additions, replacements, maintenance of the installations covered above.

The GST rate applicable for installation services is 18%

Building Completion and Finishing Services

SAC Code 995471 – Glazing services.

SAC Code 995472 – Plastering services.

SAC Code 995473 – Painting services.

SAC Code 995474 – Floor and wall tiling services.

SAC Code 995475 – Other floor laying, wall covering and wallpaper services.

SAC Code 995476 – Joinery and carpentry services.

SAC Code 995477 – Fencing and railing services.

SAC Code 995478 – Other building finishing services.

SAC Code 995479 – Services involving Repair, alterations, additions, replacements, maintenance of the completion/finishing works covered above.

The GST rates applicable for building completion and finishing services is 18%

Find the GST rate for all goods and services in India.

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