SAC Code
SAC Code 9954 — Construction Services
SAC heading 9954 covers construction services for buildings and civil structures — split at the 6-digit level by building type and by work type.
9954 is the broad "construction services" heading, but almost nothing gets filed at just 4 digits — the 6-digit sub-heading is what actually determines both the correct classification and, generally, which rate applies. Sub-headings split first by building category (single/multi-dwelling residential, other residential, industrial, commercial, other non-residential) and separately cover infrastructure — roads, highways, harbours, underground and water/sanitation works — plus repair, alteration, and maintenance services on existing structures.
Unlike goods HSN codes, which need only 4 digits below ₹5 crore turnover, SAC codes for services are mandatory at 6 digits regardless of how much revenue the business does. There's no turnover-based exemption for services the way there is for goods.
Construction is one of the clearest examples of why this tool doesn't attach a rate to a heading: GST on construction services genuinely varies by project type, by whether it's an affordable-housing scheme, and by input tax credit eligibility — a single "the rate for 9954 is X%" statement would be wrong for most projects using it. Confirm the sub-heading and rate for your specific contract on the GST portal.
What's included
- Construction of single/multi-dwelling residential buildings
- Construction of industrial and commercial buildings
- General construction services for roads, highways, and other infrastructure
- Repair, alteration, addition, and maintenance services on existing buildings
Commonly confused — classified elsewhere
- Architectural, engineering, and other design/consulting services — 9983
- Real estate services (sale/lease of completed property) — 9972
- Renting of machinery/equipment used on a construction site, without operator — 9973
Confirm the exact digit-level code and GST rate
- Go to the GST portal's HSN/SAC search page and pick the "Services" tab.
- Search using "9954" or the description above.
- Match your exact product or service to its precise 6–8 digit line.
- Check the GST rate shown there — it's tied to the exact line, not the 4-digit heading, and can change.
Frequently asked questions
Why do construction projects seem to have such different GST rates?
Because the rate depends on the specific 6-digit sub-heading, the type of project (e.g. affordable housing schemes carry concessional rates), and input tax credit eligibility — not on the 4-digit 9954 heading alone. Two contracts both filed under 9954 can genuinely carry different rates.
Is repair and maintenance work coded differently from new construction?
Yes — at the 6-digit level, repair/alteration/addition services on existing buildings have their own sub-heading, separate from new construction of the same building type. Confirm the exact sub-heading on the GST portal rather than reusing the new-construction code for repair work.
Does this apply to both the developer and the contractor?
Whoever is providing the construction service uses this heading — that's typically the contractor or builder actually carrying out the work, not necessarily the end buyer of the property.