Construction and works contract services: buildings, roads, repairs and installation.
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Works Contract falls under SAC 9954.
Construction services are SAC group 9954. A works contract combines goods and labour and is taxed as a service at 18% on the whole value. Real estate developers selling flats under construction follow a separate scheme (1% or 5% without credit), and pure labour contracts for single residential units have their own exemptions.
| Code | Description |
|---|---|
| 995411 | Construction of residential buildings |
| 995412 | Construction of non residential buildings |
| 995421 | Construction of highways, streets, roads and railways |
| 995461 | Electrical installation services |
The GST rate on works contract is 18%. 18% on most works contracts. Some government works contracts that were 12% moved to 18% on 22 September 2025. Construction of residential flats by a builder for sale has its own rates: 1% for affordable housing and 5% for others, without input tax credit.
| GST rate | Within a state | Between states |
|---|---|---|
| 18% | CGST 9% + SGST 9% | IGST 18% |
Compare other goods on the GST rates list.
The number of digits depends on your aggregate turnover in the previous financial year.
| Turnover last year | Digits | Write |
|---|---|---|
| Up to Rs 5 crore | 4 on B2B invoices, optional on B2C | 9954 |
| Above Rs 5 crore | 6 on every invoice | 995411, 995412, 995421 |
Here is how a line for works contract looks on a tax invoice within one state: 1 × running bill at Rs 5,00,000.00 each, taxed at 18%. The figures are an example, not a market price.
| Item | SAC | Qty | Rate (Rs) | Taxable (Rs) | CGST (Rs) | SGST (Rs) | Total (Rs) |
|---|---|---|---|---|---|---|---|
| Works Contract | 9954 | 1 × running bill | 5,00,000.00 | 5,00,000.00 | 45,000.00 | 45,000.00 | 5,90,000.00 |
Sold to a buyer in another state, the same line carries IGST of Rs 90,000.00 instead of CGST and SGST. Make the full invoice with the GST invoice format: it fills in the tax split, round off and amount in words.
Chapter 99 (Services (SAC)) covers: Services under GST, coded with a Services Accounting Code (SAC) that starts with 99.
Other pages in chapter 99
Products often bought, sold or invoiced together with works contract:
Works Contract falls under SAC 9954: construction and works contract services: buildings, roads, repairs and installation. Common 6 digit codes are 995411 for construction of residential buildings and 995412 for construction of non residential buildings.
18% on most works contracts. Some government works contracts that were 12% moved to 18% on 22 September 2025. Construction of residential flats by a builder for sale has its own rates: 1% for affordable housing and 5% for others, without input tax credit.
If your aggregate turnover in the previous financial year was up to Rs 5 crore, write the 4 digit code 9954 on B2B invoices (optional on B2C invoices). Above Rs 5 crore, write 6 digits, such as 995411, on every invoice.
Rates checked on 13 October 2026 against the GST rate notifications in force (GST 2.0 from 22 September 2025). Descriptions are in our own words and are a guide, not a ruling: for a disputed or high value item, check the notification or ask your tax adviser.