Cable Laying Services Under SAC Code 995424
Cable laying services cover installation of underground and overhead cables for electricity, internet, telephone and other utility networks. Service providers handle trenching, ducting, pulling cables, jointing and testing so that the network is safe, stable and ready for use. Under GST, this work is classified under SAC 995424. The SAC code and its GST rate decide how much GST is charged and how the value is reported in GST returns.
Cable Laying Services GST Rate for SAC Code 995424
Cable laying services for power, data and communication lines are treated as civil engineering or works contract services under GST. Earlier, different ways of splitting material and labour or bundling cable laying with other construction work sometimes created different effective tax results for similar projects, which made costing and quotation work harder for contractors and clients.
After the September 2025 rationalisation, cable laying and utility network installation services under SAC 995424 generally fall in the 18 percent slab with input tax credit . This standard rate applies to most projects for power cables, fibre optic networks and other utility lines, unless a special notification grants concessional treatment for a particular government or social sector scheme.
Check the table below for updated GST rate details for SAC code 995424.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 995424 | General construction services of local water & sewage pipelines, electricity and communication cables & related works | 18% with ITC | 18% with ITC | Local network works remain in the standard construction slab of 18 percent. Independent SAC rate lists for 995424 show 18 percent, and there is no specific carve out for this code in the service rate change annexures. |
When issuing invoices for services under SAC 995424, service providers should clearly show the taxable value and 18 percent GST so that eligible customers can claim input tax credit wherever allowed. The same SAC code and rate should be followed in GSTR 1 for outward supplies and in GSTR 3B while declaring the tax liability on cable laying and utility construction services.
Explore Other SAC Codes Under 9954
SAC 995424 also lies within the broader construction services group 9954, which covers construction of buildings, industrial facilities, roads, bridges, dams, pipelines and various civil engineering works, along with site preparation and building completion services. Each six digit SAC in this group helps classify contracts based on the main structure, network or system being created or upgraded.
Below is a list of related six-digit SAC codes under 9954
In day to day practice, cable laying contracts should use SAC 995424 when the main objective is installing power, data or communication cables. If the contract is mainly for road construction, building works or general site development, another SAC within 9954 may be more appropriate. Correct SAC selection and GST rate usage help reduce future disputes and keep the input tax credit trail clean for audits or assessments.
Conclusion
Cable laying services under SAC 995424 cover installation of underground and overhead cables for electricity, internet, telephone and other utility networks. These services are now generally taxed at 18 percent with input tax credit after the September 2025 changes. Service providers and clients should confirm that their contracts are rightly classified under this SAC code, apply the correct GST rate on every invoice and follow the same treatment in GST returns . For large or specialised utility projects, it is wise to review the latest GST notifications and take advice from a 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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Which services are covered under SAC code 995424?
This code covers construction and installation of underground or overhead cables and lines. It includes laying power cables, communication cables and optical fibre cables, along with associated ducting, jointing pits, cable trays, markers, poles and basic related civil works.
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Is SAC 995424 used for underground and overhead cable laying?
Yes. Both trench based underground cable laying and overhead cable installation on poles or towers can use 995424. It suits projects for electrical distribution, telecom networks and broadband data lines where the main task is installing continuous cables and related fittings.
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What is the GST rate for services under SAC 995424?
Services under 995424 are generally taxed at 18% GST as standard installation or works contract services. Government or utility projects do not automatically get a lower rate. Any concessional treatment must come from a clear notification that specifically covers that type of cable project.
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Can telecom and utility projects use SAC 995424 on invoices?
Yes. Telecom operators, internet providers and power utilities typically use this code for cable laying contracts. Contractors should mention SAC 995424 on invoices, describe the work clearly and apply the appropriate GST rate so that both parties can keep correct GST records.
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Is ITC allowed on cable and material costs under SAC 995424?
Where the service is taxable, contractors can usually claim ITC on cables, ducts, covers, joint kits and other eligible materials. For the recipient, ITC depends on whether the project supports taxable business activity, such as telecom services or power distribution, and whether any restriction applies.