The 9954 hsn code is really a SAC code: 9954 is the heading for construction services, and most construction and works contract bills carry GST at 18% with full input tax credit. It covers new buildings, civil work, site preparation, installation and finishing trades such as painting, tiling and carpentry.
Flats sold by a builder before completion follow special rates of 1% and 5%, and a few government contracts have their own entries. This page shows the 6 digit codes, how to pick the right one, a sample invoice and the credit rules. For other services see the SAC code hub.
SAC 9954: construction and works contract: codes and GST rates
Item / SAC / GST- Works contract for buildings, plants and civil work18%Goods and labour together for immovable property
- Construction of commercial and industrial buildings18%Offices, shops, factories, warehouses
- Civil engineering works: roads, pipelines, bridges18%Unless a specific entry applies to the contract
- Installation services (electrical, plumbing, HVAC)18%Group 99546
- Interior fit out and finishing work18%Group 99547: painting, tiling, carpentry
- Affordable flats sold by a promoter before completion1% (no ITC)One third of the price is deducted for land
- Other flats sold by a promoter before completion5% (no ITC)Same land deduction
- Sale of a completed building after completion certificateNot a supplyNo GST
Quick facts
SAC heading
9954 (construction services)GST rate
18%: 9% CGST + 9% SGST, or 18% IGSTFlat sales by promoters
1% or 5% without input tax creditDigits to print
4 digits up to Rs 5 crore turnover, 6 digits aboveCommon wrong code
9983 (that is for architects and engineers, not builders)Services notification
11/2017-Central Tax (Rate) as amended by 15/2025
9954 hsn code description and 6 digit codes
SAC codes for services always start with 99. Heading 9954 splits into seven groups, and each group has 6 digit codes. Print the one closest to your work.
| Group | What it covers | Common codes |
|---|---|---|
| 99541 | Buildings: residential, commercial, industrial | 995411 residential, 995414 commercial, 995419 repairs |
| 99542 | Civil engineering: roads, bridges, pipelines, plants | 995421 roads, 995424 local water and cables, 995428 other civil work |
| 99543 | Site preparation | 995431 demolition, 995433 excavation and earthmoving |
| 99544 | Prefabricated structures | Assembly and erection of sheds and pre built units |
| 99545 | Special trade work | Piling, foundations, scaffolding, roofing, waterproofing |
| 99546 | Installation | 995461 electrical installation, 995463 plumbing and drains, 995464 heating, ventilation and AC |
| 99547 | Finishing | Glazing, plastering, painting, tiling, carpentry, interior fit out |
Searches like "99546 hsn code" or "995461 hsn code" lead here: 995461 is electrical installation work, and 995469 covers other installation services. "Civil work", "contractor" and "building construction" bills sit in 99541 or 99542 depending on whether a building or other civil structure is made.
Works contract hsn code and the 18% rate
A works contract is a contract for building, fitting out, repairing or installing something on immovable property where both goods and labour pass to the client. GST treats the whole contract as a supply of services, so you do not split the bill into a goods part and a labour part. The rate is 18% with input tax credit for most works contracts, whether the client is a business, a shop owner or a house owner building a home.
Some works contracts for specified government, local authority, railway or metro projects, and some pure labour contracts, have separate entries in the services notification. If your contract is of that kind, read the exact entry before quoting any rate other than 18%.
Fabrication work hsn code: service or goods
Fabrication is a common doubt. If you fabricate and erect a steel structure at the client's site and it becomes part of the building, such as a shed, staircase or mezzanine, it is a works contract under 9954 at 18%. If you make gates, grills or frames in your workshop and deliver them as goods, bill them as goods under the HSN of the item, usually 7308 at 18%. If the client sends the steel and you only do the cutting and welding, that is job work; see the job work codes.
How a construction invoice looks
Sample line (contractor and client in the same state): Civil work for warehouse extension, SAC 995413, taxable value Rs 4,00,000. CGST 9% Rs 36,000. SGST 9% Rs 36,000. Total Rs 4,72,000.
For a client in another state, charge IGST 18% of Rs 72,000. For work on immovable property, GST follows the site of the building, so a contractor from one state doing work on a building in another state usually registers or charges tax based on that location. Plain labour without materials is covered on the labour charges page.
Gst on construction services: credit and flats
- A contractor charging 18% can take credit of GST paid on cement, steel, sand, machinery hire and subcontractors.
- The client cannot take credit of works contract GST for building its own office, shop or factory, because section 17(5) blocks credit for constructing immovable property, except plant and machinery.
- A promoter selling residential flats before completion pays 1% (affordable) or 5% (others) without credit, after deducting one third of the price as land value. Details are on the flat purchase GST page.
- Once the completion certificate is issued, the sale of a flat or building is outside GST.
Problems and fixes on 9954 bills
| Problem | Fix |
|---|---|
| Billing materials at 18% and labour separately | A works contract is one service; bill it as one line under 9954 |
| Using 9983 for a builder | 9983 is for architects and consultants; construction is 9954 |
| Charging 1% or 5% on a commercial building | Those rates only apply to residential flats sold by a promoter |
| Claiming credit on own office construction | Blocked under section 17(5) |
What is written here is the usual position for construction services, not advice on a particular contract. Government and labour contracts can have their own entries, and rates are revised by notification, so read the present entry on the GST portal and discuss your contract with a GST practitioner or chartered accountant.
Frequently asked questions
What is the 9954 hsn code gst rate?
Construction services under SAC 9954 are taxed at 18% in most cases, as 9% CGST and 9% SGST within a state. Flats sold by a promoter before completion are taxed at 1% or 5% without credit.
Is 9954 an HSN code or a SAC code?
It is a SAC code. Services use the Services Accounting Code, which starts with 99. Many invoices and searches call it an HSN code because the same column is used.
What is the hsn code for fabrication work?
Fabrication and erection at the client's site as part of a building is a works contract under 9954 at 18%. Fabricated goods sold from a workshop take the goods code, often 7308.
What is the SAC code for interior work?
Interior fit out, carpentry, painting and tiling fall in group 99547 of heading 9954, at 18%.
Is GST charged on construction of my own house?
Yes. A works contract to build a house for an individual is taxed at 18%. The house owner cannot claim the tax back.