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.
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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.
Installation 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% |
| 9987 | (i) Services by way of housekeeping, such as plumbing, carpentering, etc. where the person supplying such service through electronic commerce operator is not liable for registration under sub-section (1) of section 22 of the Central Goods and Services Tax Act, 2017. | 5 – No ITC |
6 Digit SAC Code Classification
| HSN/SAC Code | HSN/SAC Code Title | GST Rate |
|---|---|---|
| 995434 | Water well drilling services and septic system installation services | 18% |
| 995441 | Installation, assembly and erection services of prefabricated buildings | 18% |
| 995442 | Installation, assembly and erection services of other prefabricated structures and constructions | 18% |
| 995443 | Installation services of all types of street furniture (e.g., bus shelters, benches, telephone booths, public toilets, etc.) | 18% |
| 995444 | Other assembly and erection services n.e.c. | 18% |
| 995455 | Structural steel erection services | 18% |
| 995461 | Electrical installation services including Electrical wiring & fitting services, fire alarm installation services, burglar alarm system installation services. | 18% |
| 995463 | Heating, ventilation and air conditioning equipment installation services | 18% |
| 995464 | Gas fitting installation services | 18% |
| 995466 | Lift and escalator installation services | 18% |
| 995468 | Other installation services n.e.c. | 18% |
| 995469 | Services involving Repair, alterations, additions, replacements, maintenance of the installations covered above. | 18% |
| 998731 | Installation services of fabricated metal products, except machinery and equipment. | 18% |
| 998732 | Installation services of industrial, manufacturing and service industry machinery and equipment. | 18% |
| 998733 | Installation services of office and accounting machinery and computers | 18% |
| 998734 | Installation services of radio, television and communications equipment and apparatus. | 18% |
| 998735 | Installation services of professional medical machinery and equipment, and precision and optical instruments. | 18% |
| 998736 | Installation services of electrical machinery and apparatus n.e.c. | 18% |
| 998739 | Installation services of other goods n.e.c. | 18% |
* GST rates may vary based on the latest GST notifications and amendments
