Excavation Services Under SAC Code 995433
Excavation services cover digging, earthmoving and removal of soil or rock to create foundations, basements and trenches for utilities. Contractors use machines and manual labour to shape the site as per drawings so that further work can begin. Under GST, these jobs are classified under SAC 995433. The SAC code and its GST rate decide how much GST is charged and how the value is reported in GST returns.
Excavation Services GST Rate for SAC Code 995433
Excavation services, including site excavation and large earthmoving work, are treated as civil engineering or works contract services under GST. In the early years, different contract patterns and composite billing with other activities sometimes created different effective tax positions for similar excavation jobs, which caused confusion for contractors and customers.
After the September 2025 rationalisation, most excavation and earthmoving services under SAC 995433 generally come under the 18 percent slab with input tax credit. This standard rate applies where excavation is billed as a separate service, unless a specific notification provides concessional treatment for a particular government or social sector scheme.
The table below explains the current GST rate applicable to SAC code 995433 services.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 995433 | Excavating and earthmoving services | 18% with ITC | 18% with ITC | Excavation and earthmoving were a key focus in the 56th Council’s service rationalisation, where earlier 12 percent concessional rates for large earthwork contracts were shifted to 18 percent. For generic SAC presentation, both old and new typical rates are 18 percent, with a note that some very specific government earthwork contracts have moved formally from 12 to 18. |
When raising invoices for services under SAC 995433, contractors should clearly mention the taxable value and 18 percent GST so that eligible clients can claim input tax credit correctly. The same SAC code and rate should be followed in GSTR 1 for outward supplies and in GSTR 3B while reporting the tax liability on excavation and earthmoving services.
Explore Other SAC Codes Under 9954
This SAC code is part of the broader construction services group 9954, which covers construction of 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 installed.
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 main nature of the contract. If the work is more focused on building construction, general infrastructure or routine maintenance, another SAC within 9954 may be more appropriate. Correct SAC selection and GST rate application help reduce future disputes, support a clean input tax credit trail and make GST records easier to justify during audits or departmental checks.
Conclusion
Excavation services under SAC 995433 cover digging, earthmoving and removal of soil or rock to prepare sites for foundations, basements and utility trenches. These services are now generally taxed at 18 percent with input tax credit after the September 2025 changes. Contractors and project owners should ensure that such contracts are correctly classified under this SAC code, apply the proper GST rate on every invoice and maintain the same classification in GST returns. For large or complex excavation projects, it is sensible to review the latest GST notifications and seek expert advice.
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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What does SAC code 995433 cover in GST?
This code covers large scale earthmoving and excavation contracts. It includes cutting and filling big quantities of earth, building embankments, deep excavation for basements, canals or ponds and other heavy earthwork done mainly with excavators and dumpers.
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Is SAC 995433 used for bulk earthwork and excavation contracts?
Yes. When the main job is moving large volumes of soil or rock, like road embankments, canal sections or deep basements, 995433 is usually used. Smaller pits or trenches forming part of general site development often stay under broader site preparation codes.
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What GST rate applies to services under SAC 995433?
Bulk earthwork services typically attract 18% GST. There is no special general lower rate only for excavation. Some government or irrigation projects may have special benefits, but those are specific. Without such a notification, contractors should charge the normal 18% and claim ITC.
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Are rock cutting and deep excavation works included in SAC 995433?
Yes. Rock cutting, controlled blasting, deep excavation for basements, shafts, reservoirs or canals are normally captured under 995433 when these are the main tasks. Ancillary activities like small footings or foundations might be treated differently when part of a larger building contract.
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Can contractors claim ITC on equipment and fuel used for SAC 995433 projects?
Contractors can claim ITC on GST paid for equipment rentals, repair parts and taxable input services used for excavation. Fuel like diesel is outside GST, so there is no ITC on it. Recipients can claim ITC if the excavation supports a taxable project or business activity.