Non Residential Building Services Under SAC Code 995415
Non residential building construction services cover the main civil work for schools, colleges, hospitals, religious places, courts, museums and similar public or institutional buildings. Contractors handle planning, structure, walls, floors and roofs so that the building is ready for regular public use. Under GST, this work is classified under SAC 995415. The SAC code and its GST rate decide how much GST should be charged and how the value should be shown in GST returns.
Non Residential Building Services GST Rate for SAC Code 995415
Non residential building construction is normally treated as a works contract service under GST. In the initial years, different project structures and valuation methods sometimes led to different effective tax outcomes for similar institutional or public building projects. This created confusion for contractors, educational trusts, hospital managements and other organisations that needed a clear and stable tax position for long duration projects.
After the September 2025 rationalisation, construction services for schools, hospitals, religious buildings and other non residential public or institutional properties covered under SAC 995415 generally fall in the 18 percent slab with input tax credit. This standard rate applies to most such projects unless a special notification provides a different treatment for a specific scheme or type of contract. A single clear slab has made quotations, contract drafting and GST calculations simpler for both contractors and clients.
The table below gives the latest standard GST rate for SAC code 995415.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 995415 | Construction services of other non-residential buildings such as educational institutions, hospitals, clinics including veterinary clinics, religious establishments, courts, prisons, museums and other similar buildings | 18% with ITC | 18% with ITC | Unless covered by a specific exemption (for example, certain government or charitable projects), construction of non residential buildings under 995415 attracts 18 percent GST as a standard construction service. |
When a contractor issues an invoice for services under SAC 995415, the taxable value and 18 percent GST should be shown separately so that the recipient can claim input tax credit correctly, wherever eligible. The same SAC code and rate should also be used in GSTR 1 while reporting outward supplies and in GSTR 3B when declaring the tax liability for non residential building construction services for each tax period.
Explore Other SAC Codes Under 9954
SAC 995415 forms part of the broader construction services group 9954. This group covers construction of residential buildings, commercial complexes, industrial units, civil engineering works such as roads and bridges, site preparation activities and various building completion and finishing services. Each six digit SAC under 9954 focuses on a particular type of construction job so that contracts can be classified more accurately for GST purposes.
In practice, businesses should choose the SAC code that best reflects the dominant nature of their project. For example, if the work is mainly for an apartment complex or an industrial shed, another SAC within the 9954 group may be more suitable than 995415. Correct selection of SAC and GST rate helps reduce the risk of future disputes, supports proper input tax credit flow and keeps GST records easier to explain during audits or departmental checks.
Conclusion
Non residential building construction services under SAC 995415 cover the core civil work for schools, hospitals, religious places, courts, museums and similar public or institutional buildings. These services are generally taxed at 18 percent with input tax credit as part of the standard works contract slab after the September 2025 changes. Contractors and organisations should confirm that their project fits this SAC code, apply the correct GST rate on every invoice and report the same details consistently in GST returns . For special projects or mixed use campuses, it is wise to review the latest GST notifications and seek guidance from a qualified tax professional.
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 is covered under SAC code 995415 in GST?
SAC code 995415 covers construction services of other non residential buildings that are mainly institutional or public in nature. Examples include schools, colleges, training institutes, hospitals, nursing homes, religious places, courts, prisons, museums and similar community or public service buildings that are not normal homes or factories.
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Does SAC 995415 include hospitals, schools and other institutional buildings?
Yes. Construction of hospitals, clinics, medical colleges, schools, colleges, universities and many other institutional buildings usually falls under SAC 995415. It can also cover religious buildings and some public service buildings, depending on the exact nature and main use of the property described in the work contract.
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What GST rate is charged on services under SAC 995415?
Construction services under SAC 995415 normally attract 18% GST as standard works contract services. However, some government, charitable or educational projects may enjoy a concessional rate or exemption if they meet specific conditions in GST notifications. Contractors must check the project documents and GST circulars carefully before billing.
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How is SAC 995415 different from residential construction SAC codes like 995411?
SAC 995415 is for non residential institutional or public buildings, while SAC 995411 is for normal residential homes and apartments. Buildings under 995415 are used for education, health care, religion or community services, not regular living. Because of this, the exemptions, concessions and contract structures may differ.
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Are contractors eligible for ITC on non residential projects under SAC 995415?
Contractors are generally eligible for input tax credit on GST paid for non residential projects under SAC 995415 when the recipient uses the building for taxable supplies or further taxable works contract services. ITC may not be available if the property is built on own account or used for fully exempt activities.