Sports Facility Construction Services Under SAC Code 995427
Stadium construction services cover the main civil work for outdoor sports grounds, arenas, racetracks and recreation complexes. Contractors handle earthwork, stands, pavilions, service blocks and basic facilities so that the venue is safe and ready for public events. Under GST, this work is classified under SAC 995427. The SAC code and its GST rate decide how much GST is charged and how the value is shown in GST returns.
Sports Facility Construction Services GST Rate for SAC Code 995427
Stadium and outdoor sports facility construction is treated as works contract or civil engineering service under GST. In the earlier phase, different funding models and bundled contracts sometimes created different effective tax positions for similar projects, which made budgeting and tax working more complex for contractors and authorities.
After the September 2025 changes, construction of stadiums, sports grounds and outdoor recreation facilities covered under SAC 995427 generally comes under the 18 percent slab with input tax credit. This standard rate applies to most such projects, unless a specific notification offers concessional treatment for a particular public or social scheme.
The table below explains the current GST rate applicable to SAC code 995427 services.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 995427 | General construction services of outdoor sport and recreation facilities | 18% with ITC | 18% with ITC | Construction of stadiums, sports grounds and recreation facilities under 995427 is covered by 18 percent GST as a civil construction service. Separate concessional treatment can exist for certain notified sports bodies, but these are not tied to a different SAC line. |
While raising invoices for services under SAC 995427, contractors should show the taxable value and 18 percent GST separately so that eligible clients can claim input tax credit as per the law. The same SAC code and rate should be used consistently in GSTR 1 for outward supplies and in GSTR 3B while declaring the tax liability on stadium and sports facility construction services.
Explore Other SAC Codes Under 9954
This SAC code forms part of the broader construction services group 9954, which covers construction of residential and commercial buildings, industrial plants, roads, bridges, dams, pipelines and other civil engineering works, along with 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, repaired or removed.
Below are the major related six-digit SAC codes under parent 9954
In day to day use, businesses should pick the SAC code that best reflects the dominant nature of the contract. If the work is more focused on buildings, local site development or routine maintenance, another SAC within 9954 may be more suitable than this one. Correct SAC selection and GST rate application help reduce future disputes, support a clean input tax credit trail and make GST records easier to explain during audits or departmental checks.
Conclusion
Stadium construction services under SAC 995427 cover the main civil work for outdoor sports grounds, stadiums and recreation complexes. These services are now generally taxed at 18 percent with input tax credit after the September 2025 changes. Contractors and authorities should confirm that their projects are correctly classified under this SAC code, apply the right GST rate on every invoice and report the same classification in GST returns . For special public or social schemes, it is sensible to refer to the latest GST rules and consult 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
-
What is SAC code 995427 in GST?
This code is used for construction of stadiums and sports facilities. It covers civil works for sports grounds, arenas, complexes, stands, changing rooms and associated amenities designed mainly for sporting or large recreational events.
-
Does SAC 995427 cover stadium and sports complex construction?
Yes. Construction of cricket stadiums, football grounds with stands, multi sport complexes, race tracks and athletic stadiums is usually classified under 995427. It applies whether the project is for government, a sports body or a private club, as long as the main purpose is sporting use.
-
What GST rate applies to services under SAC 995427?
Construction services under 995427 are generally taxed at 18% GST. Some projects for recognised sports authorities or charitable bodies may enjoy concessions if a notification clearly covers them. Otherwise, contractors should assume and charge the standard 18% rate on their works contracts.
-
Are indoor arenas and recreation facilities also included in SAC 995427?
Yes. Indoor stadiums, multi court indoor halls, skating rinks and similar recreation spaces mainly designed for sports or physical games can also be included. If a building is primarily for shopping or cinema, it should be classified as commercial construction, not under 995427.
-
Is ITC available on GST paid for projects under SAC 995427?
Contractors can claim ITC on inputs for taxable works. Owners can claim ITC when the stadium is used for taxable supplies like ticketed matches, events or commercial renting. If the facility is used mainly for exempt or free community activities, ITC may not be allowed.