In this article, we will learn about the services that fall under the civil work sac code – 995429. Also, we will see the GST rates applicable to various services offered across India.
The GST regulatory body announced the GST margins for all manufactured products and services in May 2017 to facilitate the GST launch in India. For readers’ knowledge, we would like to mention that the corresponding GST rates have been stipulated under five caps which range from 0.25% to as high as 28%. Most produced goods and offered services exist under the taxation bracket ranging up to 28%. Also, this levied amount can be nil under certain circumstances. In the article, let’s see in detail the GST on Construction Services with SAC Codes.
SAC Code Classifying Construction Services Under GST
Service Accounting Code, generally referred to as the SAC Code, signifies a classification module deployed by the National Service Tax Council for categorising services offered in India. The respective GST rates are decided on each service based on the SAC codes designated against them.
Thus service providers get a clear idea regarding how much they need to pay the government for legally running their businesses. Section 5 of the SAC law talks about the various classes of construction services.
Civil Work SAC Code
The SAC code assigned to general construction activities conducted as a part of civil engineering projects is given below:
SAC Code Category of general construction services
995421 Construction projects of streets, highways, bridges, tunnels, airport runways, in general roadways
995422 General construction of waterways, dams, pipelines, harbours, irrigation and related services associated with waterworks
995423 Widespread construction activities of submarine/underground/overland pipe works, networking of electric power cables, maintenance of pumping stations, transformer stations and many other supplementary works
995424 Localised construction services involving sewage networks, telecommunication and electricity channels and other related projects
995425 General construction works of industrial hubs and mines
995426 General construction works of power plants along with their supporting framework
995427 General construction works projected to complete outdoor sports facilities and recreational grounds
995428 Civil work SAC code for ancillary civil engineering constructions
995429 Services related to maintenance, replacements, add-ons, renovation or remodelling of all existing infrastructure or constructions
The GST rate fixed for general construction activities related to civil engineering projects is 18%.
GST on Construction Services Involving Buildings
Just like the above section, we will discuss the various codes assigned to identify different services related to the construction of buildings in India.
SAC Code Category of construction services
995411 Construction projects involving residential buildings that are either multi-storied or meant for housing a single dweller.
995412 Construction of different residential structures other than that mentioned in the above section. These include shelters for the homeless people, hostels and so on.
995413 Extensive construction activities of commercial hubs like buildings meant for manufacturing saleable goods, storage buildings or warehouses, workshops and other similar centres.
995414 Building services planned for industrial institutions like offices, marriage halls and exhibition rooms, restaurants, airports, malls, roadway and rail terminals, parking lots, garages, theatres, petrol stations and similar infrastructure
995415 Construction activities linked to non-residential locations such as schools, colleges, hospitals, and private nursing homes. These even include veterinary centres, religious settlements, museums, courts, prisons and similar structures
995416 Construction of ancillary buildings. This includes any other building type that has not been mentioned in the aforesaid list
995419 Services related to maintenance, replacement, add-ons, renovation or remodelling of all existing infrastructure or constructions
The contractor must note that the New GST Registration percentage is stipulated at 18% for building a private establishment – a building, complex or civil architecture that will later be sold to a prospective owner either partially or wholly.
The land’s valuation is reflected in the cost incurred by the service recipient. The input tax credit provision is applicable, but there is no room for a refund of overflow (if any) associated with the input tax credit.
SAC Code Associated With Site Preparation Projects Under GST
To provide site demolition services, the organisation has to pay the GST amount decided at 18%. The SAC code that indicates demolition services is SAC 995431.
Similarly, there are some other SAC codes under this subhead, the significance of which has been stated below:
SAC 995432 points out the services related to site clearance, including preparation plans that prepare construction sites for the following activities like test drilling, core extraction, boring, digging of trenches, etc.
SAC 995433 embodies all the commercial earthmoving services, while SAC 995434 indicates the industrial processes needed to make water well systems.
SAC 995435 covers all other services necessary to make a site fit for construction.
SAC 995439 is the code assigned to track renovation services that service providers offer to meet site preparation requirements.
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SAC Code for Services Catering To Special Trade Construction Company
SAC Code Type of Special Trade Construction Service
995451 Foundation services and pile driving
995452 Framing services for roofs and buildings
995453 Waterproofing and roofing solutions
995454 Commercial concrete services
995455 Industrial steel erection projects
995456 Masonry services
995457 Scaffolding solutions
995458 Ancillary services associated with the completion of special trade construction
995459 Renovation services
GST declared for these services is 18%.
Installation Services – SAC Codes
SAC Code 995461 covers electrical installation services encompassing wiring, fitting and alarm installation plans.
Other SAC codes that fall under installation services are:
995462 – Drainage and water plumbing services
995463 – HVAC services or specialised treatment designed for heating, air conditioning and ventilation solutions
995464 – Gas fitting services
995465 – Services involving insulation elements
995468 – Ancillary installation services
995469 – Renovation services
The GST percentage set by the government for installation services – is 18%.
Building Finishing Services – SAC Code
Code 995471 covers glazing solutions, while SAC 995472 lists all the plastering services. If you look for painting services, you will find them under SAC Code 995473. Similarly, railing and fencing are described under SAC code 995477. Carpentry is also considered a finishing service and thus represented by SAC code 995476.
Lastly, SAC code 995479 describes the renovation works related to all finishing services.
Conclusion
Vakilsearch is constantly updating its web pages to keep you at par with the latest amendments in the country’s legislation. The primary objective of this article is to spread awareness regarding GST: https://reg.gst.gov.in/registration/ rates announced by the government to be paid by the service providers. To learn more on this topic, you can also visit our other blog posts.
