What is GST Reconciliation? A Detailed Guide for 2024
August 7, 2023
SAC/HSN Code for Repair and Maintenance
December 11, 2023

HSN Code for Construction Work with Material and Detailed Classification

HSN Code for Civil Construction Work with Material

In short, the HSN Code for construction work falls under the category of services and is designated as 9954. This code specifically covers services related to the construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, alteration, or restoration of a building or civil structure.

HSN Code for construction can further be sub classified adding 2 to 4 more digits as suffix. Therefore, the HSN/SAC code for construction work with material, construction contract, supply of labor has different GST codes which is given in detail below.

Note: Construction works are considered services hence it is supposed to have SAC code instead of HSN. However, due to the widely accepted colloquial, “HSN code” word is used even for services under GST. However, you might not find the code in the GST HSN Code search tool in GST portal.

What is Construction as per GST?

In reference to Goods and Services Tax (GST) in India, “construction” is considered a service. According to the Central Goods and Services Tax Act (CGST Act), the term “construction” includes the construction of a complex, building, structure, or a part thereof, for sale to a purchaser, wholly or partly. This definition is provided in Schedule II of the CGST Act.

What is HSN Code and SAC in GST?

In the context of the Goods and Services Tax (GST) in India, the Harmonized System of Nomenclature (HSN) code or Service Accounting Code (SAC) is a numerical code used to uniquely identify and classify goods under GST. The HSN code is a part of the GST invoice and is essential for the identification and classification of goods for tax purposes. It helps in the uniform classification of goods and facilitates compliance with GST regulations.

The HSN code in GST is a 6-digit code, although in certain cases, it can be extended to 6 or 8 digits for more detailed classification.

For example, in the HSN code “8703,” the first two digits (87) represent the chapter related to vehicles. The next two digits (03) represent the heading for motor cars and other motor vehicles.

SAC/HSN Code for Construction Work and Service (all Categories)

Below is a detailed list of SAC codes, along with their descriptions and corresponding GST rates, covering a range of construction services and related activities.

Note: Use This HSN Code and GST Rate Finder to Get Result in 1 Click.

HSN Code for Building Construction

SAC/HSN Code Description GST Rate
995411 Construction services for single or multi-dwelling residential buildings 18%
995412 Construction services for various residential structures like old age homes, homeless shelters, hostels, etc. 18%
995413 Construction services for industrial buildings, encompassing production facilities, workshops, storage structures, and similar industrial edifices. 18%
995414 Construction services for commercial buildings, including office spaces, exhibition and marriage halls, hotels, malls, restaurants, airports, railroad terminals, garages, parking, petrol pumps, theatres, and other comparable structures. 18%
995415 Construction services for non-residential buildings, such as hospitals, clinics (including veterinary clinics), educational institutions, religious establishments, prisons, museums, courts, and similar structures. 18%
995416 Construction Services for miscellaneous buildings. 18%
995419 Services involving repair, additions, replacements, alterations, maintenance, renovation, or remodeling of the aforementioned buildings. 18%

General Construction Services of Civil Engineering Works

SAC/HSN Code Description GST Rate
995421 Construction services for streets, highways, roads, railways, bridges, airfield runways, and tunnels. 18%
995422 Construction services for harbors, dams, water mains, waterways, lines, irrigation, and other water-related projects. 18%
995423 Construction services for long-distance underground/ submarine pipelines/ overland, communication, and electric lines (including cables), transformer stations, pumping stations, etc. 18%
995424 Construction services for local water and sewage pipelines, electricity, communication cables, and related works. 18%
995425 Construction services for mines, industrial plants, and associated infrastructure. 18%
995426 Construction services for Power Plants and the connected infrastructure. 18%
995427 Construction services for recreation facilities and outdoor sports. 18%
995428 Construction services for various civil engineering works. 18%
995429 Services encompassing repair, alterations, additions, replacements, renovation, maintenance, or remodeling of the constructions. 18%

SAC/ HSN Code for Site Preparation Services

SAC /HSN Code Description GST Rate
995431 Services for demolishing structures. 18%
995432 Services for preparing sites, including clearing, boring, extracting cores, testing, drilling, and digging trenches for construction work. 18%
995433 Services for excavating and moving earth. 18%
995434 Services for drilling water wells and installing septic systems. 18%
995435 Other site preparation services not classified elsewhere. 18%
995439 Services involving the repair, alteration, addition, replacement, renovation, maintenance, or remodeling of the covered constructions. 18%

SAC/ HSN Code for Assembly and Erection of Prefabricated Constructions

SAC/HSN Code Description GST Rate
995441 Services for installing, assembling, and erecting prefabricated buildings. 18%
995442 Services for installing, assembling, and erecting other prefabricated structures and constructions. 18%
995443 Installation services for various street furniture, such as bus shelters, public toilets, benches, telephone booths, etc. 18%
995444 Other services for assembling and erecting structures. 18%
995449 Services involving the repair, addition, replacement, alteration, maintenance of the covered constructions. 18%

SAC/ HSN Code for Special Trade Construction Services

SAC/ HSN Code Description GST Rate
995451 Pile driving and foundation services. 18%
995452 Building framing & Roof Framing services. 18%
995453 Roofing and waterproofing services. 18%
995454 Concrete services. 18%
995455 Structural steel erection services. 18%
995456 Masonry services. 18%
995457 Scaffolding services. 18%
995458 Other special construction services and works 18%
995459 Alterations, additions, repair, replacements, maintenance of the constructions covered above. 18%

SAC/ HSN Code for Installation Services

SAC/HSN Code Description GST Rate
995461 Services for electrical installation, including wiring & fitting, fire alarm installation, and burglar alarm system installation. 18%
995462 Services for water plumbing and drain laying. 18%
995463 Services for installation of heating, ventilation, and air conditioning equipment. 18%
995464 Services for gas fitting installation. 18%
995465 Services for insulation. 18%
995468 Other installation services. 18%
995469 Services involving repair, alterations, additions, replacements, and maintenance of the covered installations. 18%

SAC Code Building Completion and Finishing Services

SAC Code Description GST Rate
995471 Glazing services. 18%
995472 Plastering services. 18%
995473 Painting services. 18%
995474 Floor and wall tiling services. 18%
995475 Other floor laying, wall covering, and wallpaper services. 18%
995476 Joinery and carpentry services. 18%
995477 Fencing and railing services. 18%

HSN Code for Building Construction with Material

The HSN Code for Building Construction with material is also 9954. However, if the bills are to be prepared as job work, then it should contain detailed breakdown of the construction working portion and material used portion.

Here is the table HSN Code for Construction Material.

Building Material HSN Code
Cement 2523
Concrete Blocks 6810
Bricks 6901
Tiles 6907
Steel 72
Plumbing and Sanitary Fittings 7418
Electrical Fittings 8536
Glass 7007

In a Nutshell: The HSN code for construction is 9954 serves as a comprehensive identifier for all building and constructions works. Additional two digits as suffix in the above code gives detailed classification for various construction types. Proper application of these codes ensures accurate invoicing, taxation, and compliance with GST regulations.

FAQs About HSN Code for Construction Material Supply

What is the HSN code for construction?

The HSN code for construction is 9954, and two more digits can be added as a suffix for further classification of the type of construction work.

What is the HSN code 995421?

HSN code 995421 refers to the construction of roads, runways, railways, tunnels, bridges.

What is the 6-digit HSN code for construction service?

The 6-digit HSN code for construction service is 9954, and the last two digits refer to the specified type of construction. For example, 995411 corresponds to construction services of a single dwelling or multi-dwelling or multi-storied residential buildings.

What is the GST rate for construction services?

The GST rate for construction services is 18%. However, for works contract services where the material is supplied by the contractor, the GST rate is 12%.

Rajan Rauniyar
Rajan Rauniyar
Rajan Rauniyar is the Head of Content and SME for Marketing at HostBooks. Currently pursuing Chartered Accountancy, Rajan brings 7+ years of experience with 3+ years of hands-on experience in financial accounting, auditing, and taxation along and 4+ years of experience in content writing. Rajan's content is characterized by in-depth knowledge of finance and accounting, making it particularly valuable for accountants, business owners, lawyers, CAs, CXOs, and other decision-makers. His expertise in the B2B and SaaS industries ensures that every topic is addressed with a comprehensive understanding and is complemented with a practical solution. Drawing on his firsthand experience in financial auditing and combining it with his expertise in content writing, Rajan crafts compelling content that is not only informative and accurate but engaging to read as well. Education: CA Final – ICAI [Pursuing] CA Inter - ICAI [2016] Experience: Default – Senior Content Writer |US Based product Engineering Startup Techjockey - Content Writer | India’s First SaaS Integrator Fishtail Infosolutions - Content Writer | Digital Marketing Agency AVKG & Associates – Article Assistant | CA Firm USP & Company– Article Assistant | CA Firm

Comments are closed.


Try HostBooks
SuperApp Today

Create a free account to get access and start
creating something amazing right now!

gsp-stamp gsp-stamp safe-to-host