Installation HSN Code: Classification for Installation Services
Installation services are common in many industries, such as installing machines, air conditioners, CCTV systems, furniture and more. Under GST, these are treated as services and classified using Service Accounting Codes instead of normal goods HSN codes.
What is the HSN Code for Installation Services?
For services, India uses SAC codes which are similar to HSN. Installation related services generally fall under:
- SAC 9987 for maintenance, repair and installation services
- SAC 9954 for construction services involving installation in buildings
Which one you use depends on the nature of installation work.
How Product Installation is Classified Under HSN (SAC)?
When you install a product like an AC or machine at a customer location, the activity is usually covered under SAC 9987 if:
- You are not constructing a building or civil structure
- You are doing standalone installation or commissioning work
- The main object is to fix or start the equipment at site
If the installation is part of a bigger construction project, the same work may be treated as part of works contract under SAC 9954.
Home Installation Services and Their HSN Code
Typical home installation services include:
- Air conditioner fitting
- Geyser installation
- RO and water purifier installation
- TV wall mounting and similar services
Most of these household installation jobs are billed under SAC 9987. Many businesses mention 9987 on invoices for such services and charge standard GST.
GST Implications on Installation Services
Under GST, installation services are usually taxable at the standard rate unless a special exemption or concessional rate is given. For most installation work:
- GST is 18 percent
- The same rate applies to labour charges for installation
- Material used may be taxed separately if billed separately
If the installation forms part of a composite supply with goods, you must see whether the principal supply is goods or service and classify accordingly.
HSN (SAC) and GST Rate Table for Installation Services
| HSN / SAC Code | Service Description | Service Type or Variant | GST Rate |
|---|---|---|---|
| 9987 | Maintenance, repair and installation services | Product installation and commissioning | 18% |
| 9987 | Installation services of machinery and equipment | Industrial machine installation at site | 18% |
| 9954 | Construction services including installation in buildings | Installation as part of works contract | 18% (typical for works contract) |
These rates are general and may vary in special notified cases such as government contracts or composite schemes.
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Frequently Asked Questions
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What is the HSN or SAC code for product installation services?
Product installation services are usually classified under SAC 9987 which covers maintenance, repair and installation services.
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Are home installation services classified separately?
No, most home installation services also fall under SAC 9987 and are taxed at the standard rate.
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What GST rate applies to installation services?
Generally, installation services attract 18 percent GST unless a specific notification gives a different rate.
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When does installation come under works contract service?
If the installation is part of a construction contract for an immovable property, it can be treated as works contract under SAC 9954.
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Can different installation services have different SAC codes?
Yes, very specialised installation like telecom network installation or power transmission projects may have more specific SAC codes. Always review the exact nature of service.