Shelter Construction Services Under SAC Code 995412
Shelter construction services cover the main civil work for shelters, old age homes, hostels and other community housing. This includes core activities like planning, structure, walls, floors and roofs that turn open land into safe living space. Under GST, such work is classified under SAC 995412 for residential care homes, homeless shelters, student hostels and similar buildings. Using the correct SAC and GST rate keeps invoices, ITC claims and GST returns accurate.
Shelter Construction Services GST Rate for SAC Code 995412
Earlier under GST, shelter construction work could fall under different rates and schemes based on the type of project and how the contract was designed. Projects meant for social welfare or long term residential use usually enjoyed a lower effective tax rate, while other building projects were generally charged at the normal construction rate with full input tax credit .
After the September 2025 rationalisation, construction services for residential and community housing projects such as old age homes, homeless shelters and hostels under SAC 995412 are generally taxed at 5 percent without input tax credit, subject to conditions notified for such projects. Construction of non residential or commercial blocks within the same campus, if any, normally falls in the 18 percent slab with input tax credit, and must be evaluated separately as per the contract and actual use.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 995412 | Construction services of other residential buildings such as old age homes, homeless shelters, hostels etc | 18% with ITC | 18% with ITC | Similar to 995411, this code is shown at 18 percent in construction service overviews, with lower slabs only where housing projects meet specific scheme conditions. For a generic SAC table, 18 percent with ITC is the correct headline rate. |
When a business issues an invoice for shelter construction covered under SAC 995412, it should first check whether the work qualifies as a residential or community housing project and then apply the right GST rate. The same SAC code and rate should also be followed in GSTR 1 while showing outward supplies and in GSTR 3B while reporting the tax payable on these services.
Explore Other SAC Codes Under 9954
SAC 995412 sits within the broader construction services group 9954, which covers construction of residential and non residential buildings, industrial and commercial properties, civil engineering works, site preparation and building completion services. Within this group, each six digit SAC code represents a slightly different type of construction activity, such as apartment construction, industrial building construction or commercial complex work.
In practice, a business should choose the SAC code that best matches the main nature of the contract. For example, a standard apartment project will normally fall under a different residential construction code, whereas a factory project or a shopping mall will move to industrial or commercial construction codes within 9954. Using the correct SAC code and GST rate helps avoid future disputes, supports proper input tax credit treatment, and keeps GST records clear for scrutiny.
Conclusion
Shelter construction services under SAC 995412 mainly cover construction of shelters, old age homes, homeless shelters, hostels and other community housing facilities. After the September 2025 GST changes, such residential and social housing projects are generally taxed at a concessional rate, while other building work remains in the standard slab. For every project, it is important to match the scope of work with the correct SAC code, apply the right GST rate on invoices and report the same consistently in returns. Businesses should also keep an eye on future GST notifications and consult their tax advisor for complex or mixed use projects.
Important Disclaimer
The entire content on this page has been arranged to the best of the author's understanding and is subject to periodic updates as per the law for the time being in force. The above does not constitute professional advice or a formal recommendation. While due care has been taken in preparing this content, the existence of mistakes and omissions cannot be ruled out. BUSY Infotech Private Ltd. and its associates will not be held responsible for any loss or damage arising from any inaccurate or incomplete information in this document. We recommend consulting a professional tax consultant before acting on the information contained in this piece of content.
Frequently Asked Questions
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What services come under SAC code 995412?
SAC code 995412 covers construction services for other residential buildings which are not standard homes or apartments. It usually includes hostels, workers residential quarters, old age homes, orphanages, homeless shelters and similar long stay residential facilities made for specific groups of people.
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Is SAC 995412 used for old age homes and homeless shelters?
Yes, SAC 995412 is generally used for construction of old age homes, homeless shelters and similar social welfare residential buildings. When a contractor builds or renovates such residential facilities under a works contract, those services are normally classified under SAC 995412 in GST, not under the normal housing code.
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What is the GST rate for services under SAC 995412?
Construction services classified under SAC 995412 are generally taxed at 18% GST as part of normal works contract services. In some cases, if the project is under a specific government or charitable scheme, a different concessional rate or exemption may apply as per the relevant GST notification.
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Are government shelter projects also classified under SAC 995412?
Many government projects for shelters, hostels or similar welfare homes are classified under SAC 995412 when the work is construction related. However, the exact classification and GST rate depend on the project documents and notifications. The agreement, tender and GST circulars should be checked for the correct treatment.