Construction HSN Code for GST Filing
Construction work uses many items like cement , steel, bricks, tiles and different types of equipment. Traders, contractors, builders and project owners must bill these items correctly for smooth GST compliance.
Knowing the correct construction HSN code for building materials and equipment helps you apply the right GST rate, avoid notices and keep purchase, sale and project accounts clean.
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How Are Building Materials Classified Under HSN Code?
Under the tariff, each major group of building material has a separate HSN heading. Mineral products like cement and lime fall in a different chapter compared to steel, ceramic tiles or plastic pipes .
Inside each heading, eight digit codes further describe the product by composition, use or form. For example, cement articles like blocks and tiles fall under a separate code than loose bagged cement.
For day to day billing, small traders can often use the four digit heading with the right description and GST rate, while large manufacturers and importers should pick the exact eight digit HSN that fits their goods.
Construction 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% |
| 9994 | (i) Services by way of treatment of effluents by a Common Effluent Treatment Plant. | 18% |
| 9996 | Services provided by a race club by way of totalisator or a license to bookmaker in such club | 18% |
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% |
| 995419 | Services involving Repair, alterations, additions, replacements, renovation, maintenance or remodelling of the buildings covered above. | 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% |
| 995441 | Installation, assembly and erection services of prefabricated buildings | 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% |
| 995452 | Building framing & Roof Framing services | 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% |
| 995478 | Other building completion and finishing services n.e.c. | 18% |
| 997213 | Trade services of buildings | 18% |
| 997222 | Building sales on a fee/commission basis or contract basis | 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 |
| 998322 | Architectural services for residential building projects | 18% |
| 998323 | Architectural services for non-residential building projects | 18% |
| 998332 | Engineering services for building projects | 18% |
| 998339 | Project management services for construction projects | 18% |
| 998537 | Exterior cleaning of buildings of all types | 18% |
| 999125 | Civil defence services | 18% |
| 999443 | Building remediation services | 18% |
| 999641 | Museum and preservation services of historical sites and buildings | 18% |
* GST rates may vary based on the latest GST notifications and amendments
What is the GST Rate for Construction Materials and Equipment?
Most standard construction materials like cement, steel bars, ceramic tiles and sanitary fittings fall in the 18% slab after the latest rate changes. Earlier higher slabs like 28% on some items have largely moved to 18%.
Some basic items such as certain types of fly ash bricks or natural sand can attract a lower slab like 5%, depending on the exact description and conditions in the rate notification.
Construction equipment such as concrete mixers, tower cranes or earth moving machinery also generally fall in the 18% slab. You should check the machine chapter heading and confirm whether any concessional rate applies for specific uses like renewable energy projects.
Why Are Construction Materials Classified Separately Under HSN?
Different construction materials have different supply chains, margins and policy treatment, so they are grouped under separate HSN headings. This helps the tax system track revenue from cement, steel, tiles, pipes and other items separately.
Separate HSN codes also make it easier to give targeted relief or higher rates by changing the GST schedule for one group of items without disturbing others. For example, a rate cut for cement or tiles can be done by amending the entry for that heading alone.
For businesses, proper HSN wise classification supports clearer project costing, better comparison of supplier quotes and easier reconciliation with e way bills and purchase registers.
How to File Construction HSN Code Correctly for GST Returns?
Start by preparing a complete item master for all materials and equipment you buy or sell, such as cement, steel bars, aggregates, tiles, pipes, fixtures and machinery.
Assign the correct construction HSN code and GST rate to each item in your accounting and billing software . Make sure your purchase team and site stores staff use the same item names and codes when recording inward and outward movement.
During GSTR one filing , check the HSN wise summary to confirm that the major building material headings show the correct taxable values and tax amounts. If you notice that some materials appear under a wrong heading, correct the item mapping before the next return.
For mixed invoices that include both goods and works contract services , clearly separate the value of materials and services and apply the correct HSN or service code to each part.
Conclusion
Construction HSN code mapping covers a wide range of building materials and equipment such as cement, steel, tiles and machinery. Most of these items now fall under the 18% slab, with a few basic goods enjoying lower rates based on specific entries.
By identifying the right HSN for every material, applying the correct GST rate on invoices and reviewing HSN wise reports in GST returns, construction businesses can keep their tax compliance strong while avoiding disputes and penalty risk.
