The installation charges hsn code for installing machines, plant and equipment is SAC 99873, and GST on installation is 18%. When the installation is part of building work, such as wiring, plumbing or air conditioning ducts in a building, it is construction under 99546 of SAC 9954, also at 18%.
What changes the tax is whether installation is billed alone or with the goods. Both cases are explained below, along with the codes buyers ask about (998719, 998713) and a sample bill. The SAC code hub lists every other service heading.
Installation charges: codes and GST rates
Item / SAC / GST- Installation of industrial machinery and equipment18%SAC 99873
- Installation and commissioning of plant18%Machines, boilers, process plant
- Installation of office and computer equipment18%Networks, servers
- Installation of household appliances, billed separately18%Geysers, chimneys, purifiers
- AC installation as a separate service18%Split and central AC
- Electrical, plumbing and HVAC work in a building18%SAC 99546 under construction
- Supply and installation as one composite contractAs the goodsPrincipal supply decides the rate
- Installation included free with the goodsAs the goodsPart of the price of the goods
Quick facts
SAC group
99873: installation services other than constructionGST rate
18% (9% CGST + 9% SGST)Building installation
99546 under SAC 9954Supply and install
Composite supply, taxed as the main supplyDigits to print
4 digits up to Rs 5 crore turnover, 6 aboveCommon wrong code
998719 (that is repair of other equipment)
Installation charges hsn code list
| Code | Service | GST |
|---|---|---|
| 99873 (998731 to 998739) | Installation of machinery and equipment, other than construction | 18% |
| 99546 (995461 to 995469) | Installation in buildings: electrical, plumbing, HVAC, lifts | 18% |
| 998713 | Repair and maintenance of computers and peripherals | 18% |
| 998717 | Repair and maintenance of industrial machinery | 18% |
| 998719 | Repair and maintenance of other machinery and equipment | 18% |
People often ask for "998719 hsn code" or "998713 hsn code" when they mean installation. Those two codes are repair and maintenance, not installation. Use 99873 for a fresh installation of equipment, and the repair codes for later service visits. See repair and maintenance.
Installation and commissioning hsn code for plant
Installing and commissioning a machine at a factory, such as a CNC machine, compressor, boiler or packing line, is installation under 99873 at 18%. Trial runs, alignment and handover are part of the same service. If the installer also builds foundations or civil structures, that part is construction under SAC 9954.
Supply and installation hsn code: one bill or two
- Supply and install in one contract at one price: usually a composite supply. The principal supply, often the goods, sets the rate and code. A machine at 18% installed at one price is billed under the machine's HSN at 18%.
- Installation billed separately: a service at 18% under 99873.
- Supply and install where the result is fixed to the building: often a works contract under SAC 9954 at 18%, such as lifts or central AC ducting.
AC installation hsn code
Installing a split AC in a home or office as a separate charge is a service at 18%. Many dealers bill it under 99873 or 995464 (HVAC installation). Installation included in the AC's price is part of the sale of the AC at 18%. See AC codes.
Installer's invoice
Installer's bill to a factory: Installation and commissioning of air compressor, SAC 998739, taxable value Rs 25,000. CGST 9% Rs 2,250. SGST 9% Rs 2,250. Total Rs 29,500.
For an installer from another state working at the client's factory, the place of supply for installation linked to goods is generally where the service is performed. That usually means IGST if the installer is registered in another state, but check the place of supply rules for your case.
Installation charges gst rate and credit
Credit of the GST on installing factory machinery is available to the buyer, because section 17(5) does not block plant and machinery. Installation linked to building works, such as lifts or HVAC ducting that become part of a building, may be blocked under section 17(5) for the building owner. For work where only manpower is supplied, see labour charges.
This installation guide reflects the general position on composite supplies and SAC codes. Contracts that combine supply, civil work and installation need careful reading, so check the current notification on the GST portal and get a GST practitioner or chartered accountant to review large contracts.
Frequently asked questions
What is the hsn code for installation charges?
Installation of machinery and equipment is SAC 99873, at 18%. Installation in buildings, such as wiring and plumbing, is 99546.
What is the 998719 hsn code?
998719 is repair and maintenance of other machinery and equipment, at 18%. It is not an installation code.
Which GST rate applies to installation charges?
18% when billed separately. When installation is part of a composite supply, the rate of the main supply applies.
What is the ac installation hsn code?
AC installation billed separately is usually 99873 or 995464, at 18%.
What is the 998713 hsn code?
998713 is repair and maintenance of computers and peripherals, at 18%.