Industrial Building Construction Under SAC Code 995413

Industrial building construction services cover the main civil work for factories, workshops, warehouses and other production buildings. Contractors handle planning, structure, walls, floors and roofs so that the unit is ready for industrial use. Under GST, this work is classified under SAC 995413. The SAC code and its GST rate decide how much GST should be charged on these projects and how the value is reported in GST returns for day to day compliance.

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995413 SAC Code GST Rate

Review old and new GST rates for Industrial Building Construction under 995413 SAC Code.

Industrial building construction is normally treated as a works contract service under GST. Earlier, different rate patterns could apply based on the mix of material and labour or the type of industrial project, which often created confusion for contractors and clients. Some projects were billed with effective concessional rates, while others followed the standard construction rate with full input tax credit on goods and services used in the project.

After the September 2025 changes, construction services for factories, production units, workshops and warehouses covered under SAC 995413 generally fall in the 18 percent slab with input tax credit, unless a specific notification gives a different treatment for a particular project or scheme. This means most industrial building contracts now follow a clear single rate structure, which makes pricing, contract drafting and GST compliance more straightforward.

SAC Code

995413

Description

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

New Rate

18 %
Standard

Old Rate

18 %

Notes

Industrial building construction under 995413 is covered by the general 9954 construction heading, which is typically taxed at 18 percent. There are no sector specific 56th Council changes targeting this line; the rationalisation discussions on works contracts focus instead on specialised offshore and high earthwork contracts.

When a contractor raises an invoice for work falling under SAC 995413, the taxable value and 18 percent GST should be shown separately so that the recipient can claim the input tax credit correctly. The same SAC code and rate should also be used while reporting outward supplies in GSTR 1 and while declaring the tax liability on such services in GSTR 3B for the relevant period.

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Practical Classification Guidance

Businesses should select the SAC code that best matches the dominant nature of the contract. For example, if the work is mainly for a shopping mall or office tower, a commercial building construction code from the same 9954 group may be more appropriate than 995413. Using the right SAC and GST rate helps avoid disputes, supports proper input tax credit flow, and keeps GST records easy to explain during audits or assessments.

Conclusion

Industrial building construction services under SAC 995413 cover the core civil work for factories, workshops, warehouses and other production buildings. These services are now generally taxed at 18% with input tax credit, in line with the standard construction slab after the September 2025 changes. For every project, contractors and businesses should confirm that the work truly fits this SAC code , apply the correct rate on invoices and report the same values in GST returns. In case of special schemes or mixed use projects, it is sensible to review the latest GST notifications and take guidance from a tax professional.

Frequently Asked Questions

Clear answers to common queries about SAC Code 995413 and GST compliance.

What is SAC code 995413 used for in GST?

 SAC code 995413 is used for construction services of industrial buildings. These are buildings mainly used for production or processing activities. Examples include factory sheds, processing units, workshop buildings, cold storage used for industry and similar structures connected to manufacturing or industrial operations.

Does SAC 995413 cover factory and warehouse construction?

 Yes, SAC 995413 normally covers construction of factory buildings, production halls and industrial warehouses. It includes structures where goods are manufactured, assembled, processed or stored for industrial use. But purely commercial warehouses or retail showrooms may fall under other SAC codes like 995414, depending on their main use.

What GST rate is charged on services under SAC 995413?

 Construction services under SAC 995413 are usually taxed at 18% GST as standard works contract services. This rate applies unless a specific notification or project based exemption sets a different rate. Contractors should confirm the applicable rate in the work order and latest GST rate notification.

Is ITC allowed on industrial projects under SAC 995413?

 Input tax credit is normally allowed when industrial buildings constructed under SAC 995413 are used for taxable business activities, like manufacturing or taxable renting. ITC is restricted if the building is constructed on own account for self use, and not for further supply of works contract services.

Important Disclaimer

The above does not constitute professional advice or a formal recommendation. We recommend consulting a professional tax consultant before acting on the information contained in this piece of content.