Commercial Building Construction Under SAC Code 995414

Commercial building construction services cover the main civil work for offices, shops, malls, hotels and other business properties. Contractors handle planning, structure, walls, floors and roofs so that the premises are ready for commercial use. Under GST, this work is classified under SAC 995414. The SAC code and its GST rate decide how much GST should be charged on such projects and how the value is reported in GST returns.

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995414 SAC Code GST Rate

Review old and new GST rates for Commercial Building Construction under 995414 SAC Code.

Commercial building construction is generally treated as a works contract service under GST. In the earlier phase of GST, different valuation methods, abatements and project structures sometimes led to different effective rates for similar commercial projects. This made it difficult for builders, contractors and business owners to keep their tax treatment uniform across contracts and locations.

After the September 2025 rationalisation, construction services for offices, malls, hotels, showrooms and other business properties covered under SAC 995414 normally fall in the 18 percent slab with input tax credit. This standard rate applies to most commercial building contracts unless a specific notification grants a concessional treatment for a particular scheme or project category. A single clear slab has made pricing, quotation and GST working easier for commercial builders and their clients.

SAC Code

995414

Description

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.

New Rate

18% with ITC

Old Rate

18% with ITC

Notes

18% with ITC applies to construction of commercial buildings, with one-third of the value deducted for land where land is transferred. Commercial units sold by a promoter inside a residential real estate project pay 7.5% without ITC on the post-land value, an effective 5%. Source: Notification 11/2017-Central Tax (Rate), S. No. 3(id), 3(if) and 3(xii), para 2, as amended by 3/2019.

While raising invoices for services falling under SAC 995414, contractors should show the taxable value and 18 percent GST separately so that business clients can claim input tax credit correctly. The same SAC code and rate should be used in GSTR 1 while reporting outward supplies and in GSTR 3B while declaring the tax liability for commercial building construction services in each tax period.

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Conclusion

Commercial building construction services under SAC 995414 cover the core civil work for offices, malls, hotels and other business properties. These services are now generally taxed at 18 percent with input tax credit as part of the standard works contract slab after the September 2025 changes. Contractors and business owners should confirm that their project correctly fits this SAC code, apply the right GST rate on every invoice and report the same details in GST returns. For special projects or mixed use complexes, it is sensible to check the latest GST notifications and discuss the tax position with a qualified advisor.

Frequently Asked Questions

Clear answers to common queries about SAC Code 995414 and GST compliance.

Which services are covered under SAC code 995414?

 SAC code 995414 covers construction services of commercial buildings. This includes offices, shops, shopping malls, hotels, restaurants, cinema halls, exhibition halls, commercial complexes, petrol pumps and similar structures used mainly for business and commercial activities rather than for industrial production or residential living.

Is SAC 995414 used for office and mall construction work?

 Yes. Construction of office complexes, IT parks, shopping malls, retail showrooms, hotels and similar commercial spaces generally comes under SAC 995414. Contractors use this code on GST invoices when they provide works contract services to build or renovate such commercial buildings for their clients.

What is the GST rate on construction services under SAC 995414?

 In most cases, construction services under SAC 995414 attract 18% GST. This is the standard rate for commercial works contract services. Some special infrastructure or government projects may have different rates under specific notifications, so the contractor should always check the contract and relevant GST rate schedule.

Do commercial projects under SAC 995414 qualify for ITC?

 Yes, commercial projects usually allow input tax credit on GST paid for materials and services, when the building is used for taxable business activities like renting, hotel services or office operations. ITC is normally blocked when the property is built on own account purely for self use without further taxable supply.

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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.