---
title: "Road Construction Services | Professional Road Construction Solutions"
description: "Expert road construction services covering compliant, reliable, and high-quality solutions tailored to your needs. SAC Code 995421."
canonical: "https://busy.in/sac-code-995421/"
---

# Road Construction under SAC Code 995421

Part of [SAC 9954: Services in building & construction](https://busy.in/sac-code-9954/).

Road construction services cover the main civil work for roads, highways, streets and related transport links. Contractors handle planning, earthwork, base layers and surfacing so that the route is safe and ready for daily traffic. Under GST, this work is classified under SAC 995421. The SAC code and its GST rate decide how much GST is charged on such projects and how the value is reported in GST returns for proper compliance.

## 995421 SAC Code GST rate

Road construction and highway construction services are normally treated as works contract or civil engineering services under GST. In the earlier years, different funding models, concession agreements and composite contracts sometimes led to different effective tax outcomes for similar road projects, which made planning and cost control difficult for contractors and project owners.

After the September 2025 rationalisation, construction services for roads, highways and similar transport infrastructure covered under SAC 995421 generally fall in the 18 percent slab with input tax credit. This standard rate applies to most projects unless a specific notification grants a concessional treatment for a particular government scheme, public private partnership model or strategic infrastructure project.

**The table below explains the current GST rate applicable to SAC code 995421 services.**

| SAC code | Description | New GST rate (from 22 Sep 2025) | Old GST rate (till 21 Sep 2025) | Notes |
| --- | --- | --- | --- | --- |
| 995421 | General construction services of highways, streets, roads, railways and airfield runways, bridges and tunnels. | 18% with ITC | 18% with ITC | Civil engineering infrastructure under 995421 is part of 99542. Earlier rate tables offered 12 percent for some government works contracts; those specific entries are now merged into 18 percent under the rationalisation. For standard B2B/B2G contracts this SAC is correctly shown at 18 percent with ITC both before and after, with certain legacy 12 percent government contracts shifting to 18. |

When issuing invoices for services under SAC 995421, contractors should clearly show the taxable value and 18 percent GST so that eligible clients, especially registered businesses and government bodies, can claim input tax credit where allowed. The same SAC code and rate should also be used in GSTR 1 while reporting outward supplies and in [**GSTR 3B**](https://busy.in/gst/a-guide-to-gstr-3b-what-is-gstr-3b/) while declaring the tax liability for road construction services in each period.

## Practical classification guidance

In practice, businesses should choose the SAC code that best matches the main nature of their project. If the work relates more to building construction, irrigation projects or building maintenance, another SAC within 9954 may be more suitable than 995421. Correct SAC selection and GST rate application help avoid disputes, support proper input tax credit flow and keep GST records easier to defend during audits or inspections.

## Conclusion

Road construction services under SAC 995421 cover the core civil work for roads, highways and related transport links. These projects are now generally taxed at 18 percent with input tax credit as part of the standard infrastructure works slab after the September 2025 changes. Contractors and project owners should confirm that their contracts fit this SAC code, apply the right [**GST rate**](https://busy.in/gst-rates/) on every invoice and report the same classification in GST returns. For complex concession models or special government schemes, it is sensible to review the latest GST notifications and seek advice from a tax professional.

## Frequently asked questions

### What is SAC code 995421 in GST?

This code is used for construction services of roads and similar infrastructure. It covers building and major upgrading of roads, highways, city streets, bridges, flyovers and other road related structures executed under civil works contracts for governments, developers or private concessionaires.

### Does SAC 995421 apply to road, highway and bridge construction work?

Yes. New road projects, highway widening, construction of flyovers, overbridges, underpasses and elevated corridors are typically classified under 995421. It focuses on the main carriageway, junctions and associated road structures, not incidental internal colony roads built as part of a building complex.

### What GST rate is applicable on services under SAC 995421?

In general, 18% GST applies to services under this code. Some specific government road projects or annuity based models have enjoyed exemptions or concessional treatment under particular notifications. Contractors must always match their project with the latest notification before deciding on any lower or nil rate.

### Are government road projects also classified under SAC 995421?

Yes. Whether the employer is a government body, PSU or private company, if the work is road or bridge construction, it usually falls under 995421. The SAC remains the same. Only the applicable GST rate or exemption differs based on project nature and notification coverage.

### Can contractors claim ITC on materials for projects billed with SAC 995421?

Contractors who charge GST can usually claim ITC on cement, steel, bitumen and other inputs used in road projects. If the specific project output is exempt from GST, ITC cannot be claimed and all input taxes become part of the cost of delivering that project.

## Explore more

### Other SAC services under 9954

- [995411: Apartment Construction](https://busy.in/sac-code-995411/)
- [995412: Shelter Construction](https://busy.in/sac-code-995412/)
- [995413: Industrial Building Construction](https://busy.in/sac-code-995413/)
- [995414: Commercial Building Construction](https://busy.in/sac-code-995414/)
- [995415: Non Residential Building](https://busy.in/sac-code-995415/)
- [995416: Church Construction](https://busy.in/sac-code-995416/)
- [995419: Property Maintenance](https://busy.in/sac-code-995419/)
- [995422: Irrigation Infrastructure](https://busy.in/sac-code-995422/)
- [995423: Pipeline Construction](https://busy.in/sac-code-995423/)
- [995424: Cable Laying](https://busy.in/sac-code-995424/)
- [995425: Industrial Plant Construction](https://busy.in/sac-code-995425/)
- [995426: Power Plant Construction](https://busy.in/sac-code-995426/)
- [995427: Sports Facility Construction](https://busy.in/sac-code-995427/)
- [995428: Dam Construction](https://busy.in/sac-code-995428/)
- [995429: Construction Maintenance](https://busy.in/sac-code-995429/)
- [995431: Structural Demolition](https://busy.in/sac-code-995431/)
- [995432: Site Preparation](https://busy.in/sac-code-995432/)
- [995433: Excavation](https://busy.in/sac-code-995433/)
- [995434: Septic System Installation](https://busy.in/sac-code-995434/)
- [995435: Land Clearing](https://busy.in/sac-code-995435/)
- [995439: Repair](https://busy.in/sac-code-995439/)
- [995441: Prefabricated Buildings](https://busy.in/sac-code-995441/)
- [995442: Prefabricated Structures](https://busy.in/sac-code-995442/)
- [995443: Street Furniture Installation](https://busy.in/sac-code-995443/)
- [995444: Construction Assembly](https://busy.in/sac-code-995444/)
- [995449: Building Alteration](https://busy.in/sac-code-995449/)
- [995451: Pile Driving](https://busy.in/sac-code-995451/)
- [995452: Roof Framing Construction](https://busy.in/sac-code-995452/)
- [995453: Waterproofing](https://busy.in/sac-code-995453/)
- [995454: Concrete](https://busy.in/sac-code-995454/)
- [995455: Structural Steel Erection](https://busy.in/sac-code-995455/)
- [995456: Masonry](https://busy.in/sac-code-995456/)
- [995457: Scaffolding](https://busy.in/sac-code-995457/)
- [995458: Special Trade Construction](https://busy.in/sac-code-995458/)
- [995459: Building Repair And Maintenance](https://busy.in/sac-code-995459/)
- [995461: Electrical Installation](https://busy.in/sac-code-995461/)
- [995462: Water Plumbing](https://busy.in/sac-code-995462/)
- [995463: Hvac Installation](https://busy.in/sac-code-995463/)
- [995464: Gas Fitting Installation](https://busy.in/sac-code-995464/)
- [995465: Insulation](https://busy.in/sac-code-995465/)
- [995466: Lift And Escalator, Elevator Installation](https://busy.in/sac-code-995466/)
- [995468: Installation](https://busy.in/sac-code-995468/)
- [995469: Repair And Maintenance](https://busy.in/sac-code-995469/)
- [995471: Glazing](https://busy.in/sac-code-995471/)
- [995472: Plastering](https://busy.in/sac-code-995472/)
- [995473: Painting](https://busy.in/sac-code-995473/)
- [995474: Floor Wall Tiling](https://busy.in/sac-code-995474/)
- [995476: Carpentry](https://busy.in/sac-code-995476/)
- [995477: Railing](https://busy.in/sac-code-995477/)
- [995478: Building Completion](https://busy.in/sac-code-995478/)
- [995479: Maintenance](https://busy.in/sac-code-995479/)

### All SAC headings

- [99: All Services Accounting](https://busy.in/sac-code-99/)
- [9954: Services in building & construction](https://busy.in/sac-code-9954/)
- [9961: Services in wholesale trade](https://busy.in/sac-code-9961/)
- [9962: Services in retail trade](https://busy.in/sac-code-9962/)
- [9963: Accommodation, food & beverage services](https://busy.in/sac-code-9963/)
- [9964: Passenger transport services](https://busy.in/sac-code-9964/)
- [9965: Goods transport services](https://busy.in/sac-code-9965/)
- [9966: Rental services of transport vehicles](https://busy.in/sac-code-9966/)
- [9967: Supporting services in transport](https://busy.in/sac-code-9967/)
- [9968: Postal & courier services](https://busy.in/sac-code-9968/)
- [9969: Electricity, gas & water supply services](https://busy.in/sac-code-9969/)
- [9971: Financial & related services](https://busy.in/sac-code-9971/)
- [9972: Real estate services](https://busy.in/sac-code-9972/)
- [9973: Leasing or rental services](https://busy.in/sac-code-9973/)
- [9981: Research & development services](https://busy.in/sac-code-9981/)
- [9982: Legal & accounting services](https://busy.in/sac-code-9982/)
- [9983: Professional, technical & business services](https://busy.in/sac-code-9983/)
- [9984: Telecommunications & broadcasting supply services](https://busy.in/sac-code-9984/)
- [9985: Support services to business](https://busy.in/sac-code-9985/)
- [9986: Support services to agriculture, hunting, forestry & more](https://busy.in/sac-code-9986/)
- [9987: Maintenance, repair & installation services](https://busy.in/sac-code-9987/)
- [9988: Manufacturing services on physical inputs](https://busy.in/sac-code-9988/)
- [9989: Services in publishing, printing & bookbinding](https://busy.in/sac-code-9989/)
- [9991: Public administration & other services](https://busy.in/sac-code-9991/)
- [9992: Education services](https://busy.in/sac-code-9992/)
- [9993: Human health & social care services](https://busy.in/sac-code-9993/)
- [9994: Sewage & waste collection](https://busy.in/sac-code-9994/)
- [9995: Services of membership organizations](https://busy.in/sac-code-9995/)
- [9996: Recreational, cultural & sporting services](https://busy.in/sac-code-9996/)
- [9997: Other Services](https://busy.in/sac-code-9997/)