Industrial Plant Construction Services Under SAC Code 995425
Industrial plant construction services cover the main civil and structural work for factories, processing units, power plants and similar large industrial facilities. Contractors handle foundations, structural frames, floors, roofs and heavy equipment bases so that the site is ready for installation. Under GST, this work is classified under SAC 995425. The SAC code and its GST rate decide how much GST is charged and how the value is shown in GST returns .
Industrial Plant Construction Services GST Rate for SAC Code 995425
Industrial plant construction services are treated as works contract or civil engineering services under GST. In the earlier years, different contract structures, milestone billing and composite supplies sometimes led to different effective tax outcomes for similar industrial projects, which made price comparison and tax planning difficult for both contractors and plant owners.
After the September 2025 rationalisation, construction services for factories, processing plants, power plants and similar industrial facilities under SAC 995425 generally fall in the 18 percent slab with input tax credit. This standard rate applies to most industrial plant projects unless a special notification provides a different treatment for a particular strategic or government supported scheme.
The table below gives the latest GST rate for services under SAC code 995425.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 995425 | General construction services of mines and industrial plants | 18% with ITC | 18% with ITC | Mines and industrial plant construction appears with both 12 and 18 percent entries in some older rate charts depending on contract conditions. However, more recent GST 2.0 summaries and civil construction overviews treat heavy industrial construction uniformly at 18 percent, reflecting the move away from 12 percent variants. For a typical SAC wise table it is safest to show 18 percent both before and after, while noting that certain legacy 12 percent contracts have now converged to 18. |
When issuing invoices for services under SAC 995425, contractors should clearly show the taxable value and 18 percent GST so that plant owners and industrial clients can claim input tax credit correctly. The same SAC code and rate should also be followed in GSTR 1 for outward supplies and in GSTR 3B while declaring the tax liability on industrial plant construction services for each filing period.
Explore Other SAC Codes Under 9954
SAC 995425 is part of the broader construction services group 9954, which covers construction of residential and commercial buildings, industrial structures, roads, bridges, dams, pipelines and other civil engineering works, as well as site preparation and building completion services. Each six digit SAC within this group helps match contracts to the main type of structure or facility being created.
Below is a list of related six-digit SAC codes under 9954
In practice, contractors should select SAC 995425 when the core purpose of the contract is to build an industrial plant or similar heavy production facility. If the project centres more on commercial complexes, residential buildings or general infrastructure, another SAC within 9954 may be more suitable. Correct SAC selection and GST rate application helps reduce future disputes, supports a clean input tax credit trail and makes GST records easier to justify during scrutiny or audits.
Conclusion
Industrial plant construction services under SAC 995425 cover the core civil and structural work for factories, processing units, power plants and other heavy industrial facilities. These services are now generally taxed at 18 percent with input tax credit after the September 2025 changes. Contractors and plant owners should confirm that their contracts are properly classified under this SAC code, apply the correct GST rate on each invoice and follow the same classification in GST returns. For complex or multi stage industrial projects, it is wise to review the latest GST notifications and seek 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
-
What does SAC code 995425 mean in GST?
This code relates to construction of industrial plants and mining facilities. It covers civil and structural works for factories, refineries, processing plants, mines, material handling plants and supporting buildings that directly serve large scale industrial or mining operations.
-
Does SAC 995425 include industrial plant and mine construction?
Yes. Construction of production plants, refineries, cement plants, beneficiation plants, conveyor galleries, mine infrastructure and related heavy industrial structures generally falls under 995425. It is used when projects are clearly industrial in nature rather than simple office or commercial building works.
-
What GST rate is applicable on services under SAC 995425?
Most construction services under this code are taxed at 18% GST. There are usually no large exemptions for private industrial plant construction. Any concession would be very specific and must be checked directly in the relevant notification before a different rate is applied.
-
Are machinery foundations and related civil works covered in SAC 995425?
Yes. Heavy foundations, pedestals, pits, trenches and supporting civil structures built for plant machinery usually come under 995425 when they are part of the industrial plant project. The separate mechanical erection of machinery itself may be classified under installation service codes.
-
Can businesses claim ITC for projects billed under SAC 995425?
Businesses using these plants for taxable supplies can normally claim ITC on GST charged by contractors, subject to general rules. If the plant is used for exempt outputs or outside the scope of business, ITC is not permitted and GST becomes a cost.