Dam Construction Under SAC Code 995428

Other civil engineering construction services cover projects like bridges, flyovers, tunnels, dams and similar structures not classified elsewhere. Contractors manage design support, earthwork, structures and finishing so that the asset is safe and fit for use. Under GST, this work is classified under SAC 995428. The SAC code and its GST rate decide how much GST is charged and how the value is shown in GST returns.

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995428 SAC Code GST Rate

Review old and new GST rates for Dam Construction under 995428 SAC Code.

Other civil engineering construction services, such as bridges, tunnels, dams and special structures, are treated as works contract or civil engineering services under GST. In the initial years, varied contract patterns and composite billing sometimes led to different effective tax results for similar projects, creating uncertainty for project costing and tax planning.

After the September 2025 rationalisation, most other civil engineering projects covered under SAC 995428 fall in the 18 percent slab with input tax credit . This standard rate applies to bridges, flyovers, dams, tunnels and similar works unless a specific notification grants a different treatment for a particular government or strategic scheme.

The table below shows the latest standard GST rate for SAC code 995428.

SAC Code

995428

Description

General construction services of other civil engineering works n.e.c.

New Rate

18 %
Standard

Old Rate

18 %

Notes

Residual civil engineering construction under 995428 follows the same 18 percent pattern. Where more than 75 percent of the contract value is earthwork for government, earlier 12 percent entries have now been rationalised to 18 percent, but the SAC code remains the same.

When billing for projects under SAC 995428, contractors should clearly show the taxable value and 18 percent GST so that eligible recipients can claim input tax credit in a proper manner. The same SAC code and rate should also be followed in GSTR 1 and GSTR 3B while reporting the tax liability on these civil engineering construction services.

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Explore More SAC Codes Under 9954

Practical Classification Guidance

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

Other civil engineering construction services under SAC 995428 cover projects like bridges, flyovers, tunnels, dams and similar structures not covered elsewhere. These services are now generally taxed at 18 percent with input tax credit after the September 2025 changes. Contractors and project owners should check that their contracts are correctly mapped to this SAC code , charge the correct GST rate on all invoices and use the same classification in GST returns. For specialised or strategic projects, it is sensible to review the latest GST notifications and take professional advice.

Frequently Asked Questions

Clear answers to common queries about SAC Code 995428 and GST compliance.

Which works are classified under SAC code 995428?

This code covers construction of large hydraulic structures like dams, barrages, weirs and major retaining walls used for irrigation, hydropower, flood control or long term water storage. It includes main dam bodies, spillways, outlets and important associated civil structures.

Is SAC 995428 used for dam, barrage and spillway construction?

Yes. Construction of new dams, barrages, spillways, sluice structures and gated outlets is typically classified under 995428. It focuses on heavy civil engineering works that control or store large volumes of water, not small ponds or farm tanks.

What is the GST rate for services under SAC 995428?

Services under this code usually attract 18% GST. Some government or multi purpose dam projects may receive special treatment via notifications, but these are specific cases. Unless you clearly fall under such a notification, the default GST rate remains 18% with ITC for contractors.

Are irrigation and hydropower dams both covered in SAC 995428?

Yes. The same code generally applies whether the dam’s main purpose is irrigation, water supply, hydropower, flood control or a combination. Civil structures forming the dam body and main hydraulic features are grouped here, even if separate power plant works use power plant codes.

Can contractors claim ITC on materials for SAC 995428 projects?

Contractors charging GST on dam projects can usually claim ITC on cement, steel, aggregates, admixtures and other taxable inputs. If output is exempt from GST, ITC is blocked and all those input taxes must be absorbed as part of the project cost.

Important Disclaimer

The above does not constitute professional advice or a formal recommendation. We recommend consulting a professional tax consultant before acting on the information contained in this piece of content.