Civil Work HSN Code for GST Filing
Civil work covers construction, repair and maintenance of buildings, roads and other structures. Contractors, builders and project owners must use the correct civil work HSN or service code and GST rate so that contracts, invoices and returns stay compliant.
What is the HSN Code for Civil Work and Construction?
Under GST, most civil work linked with immovable property is treated as a works contract service rather than a sale of separate goods and labour. Such services are usually classified under service code 9954 which covers construction services of buildings and civil engineering works.
Civil Work SAC Code Classification and GST Rates
Here are some commonly used HSN codes and GST rates for this category
4 Digit SAC Code Classification
| HSN/SAC Code | HSN/SAC Code Title | GST Rate |
|---|---|---|
| 9954 | Other construction services | 18% |
| 9964 | Other Passenger transport services | 18% |
| 9972 | Upfront amount (called as premium, salami, cost, price, development charges or by any other name) payable in respect of service by way of granting of long term lease of thirty years, or more) of industrial plots or plots for development of infrastructure for financial business, provided by the State Government Industrial Development Corporations or Undertakings or by any other entity having 50 per cent. or more ownership of Central Government, State Government, Union territory to the industrial units or the developers in any industrial or financial business area. substituted on 13/10/2017 | 0% |
| 9973 | Other Leasing or rental services, with or without operator | Same rate of integrated tax as applicable on supply of like goods involving transfer of title in goods |
| 9983 | Any services provided by, _(a) the National Skill Development Corporation set up by the Government of India;(b) a Sector Skill Council approved by the National Skill Development Corporation;(c) an assessment agency approved by the Sector Skill Council or the National Skill Development Corporation;(d) a training partner approved by the National Skill Development Corporation or the Sector Skill Council, in relation to-(i) the National Skill Development Programme implemented by the National Skill Development Corporation; or(ii) a vocational skill development course under the National Skill Certification and Monetary Reward Scheme; or(iii) any other Scheme implemented by the National Skill Development Corporation. | 0% |
| 9985 | Other support services | 18% |
| 9991 | Services provided by a partnership firm of advocates or an individual as an advocate other than a senior advocate, by way of legal services to"(iii) the Central Government, State Government, Union territory, local authority, Governmental Authority or Government Entity; | 0% |
6 Digit SAC Code Classification
| HSN/SAC Code | HSN/SAC Code Title | GST Rate |
|---|---|---|
| 995411 | Construction services of single dwelling or multi dwelling or multi-storied residential buildings | 18% |
| 995412 | Construction services of other residential buildings such as old age homes, homeless shelters, hostels etc | 18% |
| 995413 | Construction services of industrial buildings such as buildings used for production activities (used for assembly line activities), workshops, storage buildings and other similar industrial buildings | 18% |
| 995414 | Construction services of commercial buildings such as office buildings, exhibition & marriage halls, malls, hotels, restaurants, airports, rail or road terminals, parking garages, petrol and service stations, theatres and other similar buildings. | 18% |
| 995415 | Construction services of other non-residential buildings such as educational institutions, hospitals, clinics including veterinary clinics, religious establishments, courts, prisons, museums and other similar buildings | 18% |
| 995416 | Construction Services of other buildings n.e.c | 18% |
| 995421 | General construction services of highways, streets, roads, railways and airfield runways, bridges and tunnels. | 18% |
| 995422 | General construction services of harbours, waterways, dams, water mains and lines, irrigation and other waterworks | 18% |
| 995423 | General construction services of long-distance underground/overland/submarine pipelines, communication and electric power lines (cables); pumping stations and related works; transformer stations and related works. | 18% |
| 995424 | General construction services of local water & sewage pipelines, electricity and communication cables & related works | 18% |
| 995425 | General construction services of mines and industrial plants | 18% |
| 995426 | General construction services of Power Plants and its related infrastructure | 18% |
| 995427 | General construction services of outdoor sport and recreation facilities | 18% |
| 995428 | General construction services of other civil engineering works n.e.c. | 18% |
| 995429 | Services involving Repair, alterations, additions, replacements, renovation, maintenance or remodelling of the constructions covered above. | 18% |
| 995432 | Site formation and clearance services including preparation services to make sites ready for subsequent construction work, test drilling & boring & core extraction, digging of trenches. | 18% |
| 995439 | Services involving Repair, alterations, additions, replacements, maintenance of the constructions covered above. | 18% |
| 995442 | Installation, assembly and erection services of other prefabricated structures and constructions | 18% |
| 995449 | Services involving Repair, alterations, additions, replacements, maintenance of the constructions covered above. | 18% |
| 995458 | Other special trade construction services n.e.c. | 18% |
| 995459 | Services involving Repair, alterations, additions, replacements, maintenance of the constructions covered above. | 18% |
| 997313 | Leasing or rental services concerning construction machinery and equipment with or without operator | Same rate of integrated tax as applicable on supply of like goods involving transfer of title in goods |
| 998339 | Project management services for construction projects | 18% |
| 999125 | Civil defence services | 18% |
* GST rates may vary based on the latest GST notifications and amendments
How Does GST Apply to Construction Work and Civil Construction?
For a typical works contract involving supply of both materials and labour for immovable property, GST is generally charged at 18% under service code 9954. The contractor charges GST on the full contract value and the recipient can claim input tax credit where eligible.
In some specific schemes such as affordable housing or government notified projects, concessional rates may apply subject to conditions like non availability of input tax credit or specific project approval. These special cases must be checked carefully before deciding the rate in the contract.
Why is Correct Classification of Civil Work Important for GST?
Correct civil work classification avoids dispute on whether a contract is a pure labour service, a works contract service or a composite supply with different tax treatment. It also affects whether input tax credit is available to the recipient, especially in the case of construction of immovable property for own use.
Wrong classification can lead to short payment of GST or wrong availment of credit, which may attract interest and penalties at the time of departmental scrutiny or audit.
How to Classify Civil and Construction Work Correctly for GST Filing?
Before raising invoices you should carefully read the contract to see whether it involves transfer of property in goods along with labour. If yes, it usually becomes a works contract service under code 9954. Pure labour contracts without transfer of property may fall under other service codes with different rates.
You should also ensure that your accounting system tracks civil work contracts separately with proper service description, service code and GST rate, so that GSTR one and annual returns show accurate figures for such services.
Conclusion
Most construction and civil work linked with immovable property is treated as works contract service under service code 9954 and taxed at 18% GST, except in special concessional cases notified by the government. Using the right civil work HSN or service code in contracts and invoices helps both contractors and clients stay compliant.
Careful reading of the contract nature and keeping item wise records in your accounting software will make civil work GST reporting much easier.
As a Chartered Accountant with over 18 years of experience, I have honed my skills in the field and developed a genuine passion for writing. I specialize in crafting insightful content on topics such as GST, income tax, audits, and accounts payable. By focusing on delivering information that is both engaging and informative, my aim is to share valuable insights that resonate with readers.
Frequently Asked Questions
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What is the HSN code for civil work?
Most civil work involving construction, repair or renovation of immovable property is treated as works contract service and is classified under service code 9954 which generally attracts 18% GST.
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How does GST apply to civil construction and building work?
In a standard works contract, GST is charged at 18% on the total contract value including materials and labour. The recipient may claim input tax credit subject to restrictions for construction of immovable property for own use.
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Are there different HSN codes for civil work in residential and commercial construction?
Residential and commercial projects are usually covered under the same service code 9954, but some categories like affordable housing may enjoy concessional rates subject to specific conditions in government notifications.
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How do I file civil work HSN codes for GST returns?
While filing GSTR one you should show supplies of civil work under the correct description and service code 9954 with the applicable GST rate. The same code should appear on tax invoices, e invoices and contracts.
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Is the GST rate the same for all types of civil work?
The standard rate for works contract civil services is generally 18%, but some specified projects and schemes may have different effective rates. It is important to review the latest notifications relevant to your type of project.