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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
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