Church Construction Services Under SAC Code 995416
Church construction services cover the main civil work for churches, temples, community halls and other cultural or recreational buildings. Contractors handle planning, structure, walls, floors and roofs so that the premises are safe and ready for public gatherings. Under GST, this work is classified under SAC code 995416. The SAC code and its GST rate decide how much GST is charged on these projects and how the value is reported in GST returns.
Church Construction Services GST Rate for SAC Code 995416
Church construction and community centre building projects are generally treated as works contract services under GST. In the earlier phase of GST, different project structures and abatements sometimes led to different effective rates for similar cultural or religious building projects, which made planning and cost estimation difficult for contractors and managing trusts.
After the September 2025 changes, construction services for churches, community centres and other cultural or recreational buildings covered under SAC 995416 normally fall in the 18 percent slab with input tax credit. This standard rate applies to most projects in this category unless a specific notification grants a concessional treatment for a particular scheme or sponsoring body.
The table below summarises the present GST rate for services under SAC code 995416.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 995416 | Construction Services of other buildings n.e.c | 18% with ITC | 18% with ITC | This residual building construction code falls under the same 99541 group. Service classification tables list 18 percent as the default rate for 9954, with concessions limited to notified categories. |
When issuing invoices for work classified under SAC 995416, contractors should show the taxable value and 18 percent GST separately so that eligible clients can claim input tax credit in a proper manner. The same SAC code and rate should also be followed in GSTR 1 while reporting outward supplies and in GSTR 3B while declaring the tax liability for these construction services.
Explore Other SAC Codes Under 9954
SAC 995416 falls under the broader construction services group 9954. This group covers construction of residential buildings, commercial complexes, industrial units, public institutions, civil engineering projects and building completion services. Each six digit SAC code within this group focuses on a specific type of construction activity, such as apartment construction, industrial plant construction, road works or interior finishing jobs. The list below shows the major related six-digit SAC codes under the same four-digit parent 9954, excluding 995416.
Businesses should select the SAC code that best reflects the main nature of their project. For example, a project for apartment blocks or factory sheds may fit better under another SAC within 9954 than under 995416. Using the correct SAC along with the proper GST rate helps reduce the risk of disputes, keeps input tax credit flow smooth and makes GST records easier to support during audits or inspections.
Conclusion
Church construction services under SAC 995416 mainly cover the core civil work for churches, temples, community centres and other cultural or recreational buildings. These projects are now generally taxed at 18 percent with input tax credit in line with the standard works contract slab after the September 2025 changes. Contractors and clients should confirm that their project is correctly classified under this SAC code, apply the right GST rate on every invoice and report the same details in GST returns . For special schemes or mixed use campuses, it is wise to review the latest GST notifications and take advice 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 SAC code 995416 used for in GST?
This code is used for construction of special non residential buildings like religious, cultural or community structures. It covers works contracts where the main purpose is public use, prayer or community gatherings, not business offices, shops, factories or normal commercial real estate projects.
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Does SAC 995416 cover church and other religious building construction?
Yes. Construction of churches, temples, mosques, gurudwaras and similar religious buildings is usually covered under SAC 995416. It applies when a contractor builds or significantly reconstructs such places of worship under a works contract, whether for a trust, society or any other religious organisation.
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What GST rate applies to services under SAC 995416?
Normally, construction services under this code are taxed at 18% GST. Some religious or charitable projects may get special exemption or concessional rate if they exactly match the conditions in government notifications. Without a clear exemption, contractors should charge 18% with input tax credit allowed to them.
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Are community centres and recreational halls also classified under SAC 995416?
Yes, many community halls, prayer halls, marriage halls used mainly for social or religious functions can fall under 995416. If a hall is designed and run clearly as a commercial banquet or convention centre with strong business use, it may instead fit commercial building codes.
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Can ITC be claimed on construction expenses booked under SAC 995416?
Contractors can claim ITC on inputs for taxable works contracts under 995416. The final owner usually cannot claim ITC on building construction capitalised as immovable property for own use. ITC may be allowed if the building is later used for taxable renting or business services.