Septic System Installation Services Under SAC Code 995434
Septic system installation services cover digging, laying and fitting septic tanks, soak pits and related drainage lines at residential, commercial or institutional sites. Service providers handle site marking, excavation, tank placement and basic backfilling. Under GST, this work is classified under SAC 995434. The SAC code and its GST rate decide how much GST is charged and how the value is recorded in GST returns.
Septic System Installation Services GST Rate for SAC Code 995434
Septic system installation services are treated as civil engineering or works contract services under GST. In earlier years, different ways of combining excavation, tank supply and installation sometimes produced different effective tax results for similar installations, which made it difficult for contractors and property owners to keep a consistent tax position.
After the September 2025 changes, most septic system installation jobs under SAC 995434 generally fall in the 18 percent slab with input tax credit . This standard rate applies where the contractor supplies labour and related material as part of a works contract, unless a specific notification grants concessional treatment for a particular type of public or social scheme.
The table below gives the latest GST rate for services under SAC code 995434.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 995434 | Water well drilling services and septic system installation services | 18% with ITC | 18% with ITC | Water well drilling and septic system installation are site preparation / civil engineering services. Updated SAC wise and construction sector summaries treat these at 18 percent with ITC as standard, with no separate 56th Council line item altering this. |
When issuing invoices for services under SAC 995434, service providers should clearly show the taxable value and 18 percent GST so that eligible clients can claim input tax credit where permitted. The same SAC code and rate should also be used in GSTR 1 and GSTR 3B while reporting the tax liability on septic system installation 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.
The list below highlights key six-digit SAC codes under 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
Septic system installation services under SAC 995434 cover digging, laying and fitting septic tanks, soak pits and related drainage lines at residential, commercial and institutional sites. These services are now generally taxed at 18 percent with input tax credit after the September 2025 changes. Contractors and property owners should confirm that such work is correctly classified under this SAC code, charge the correct GST rate on every invoice and follow the same classification in GST returns. For projects linked to public health or government schemes, it is wise to review the latest GST rules and consult a tax expert.
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 is SAC code 995434 in GST?
This code covers construction of local sanitation, drainage and waste water systems. It includes septic tanks, soak pits, small sewage lines, manholes, campus drains and simple treatment units that handle waste water at building, colony or small community level.
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Does SAC 995434 cover septic tank and sewer system installation?
Yes. Construction and installation of septic tanks, soak pits, inspection chambers, local sewage lines and small drainage systems usually come under 995434. Larger city wide sewer networks often fit under other water and sewerage infrastructure codes, but smaller local systems can stay here.
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What is the GST rate for services under SAC 995434?
Services under this code generally attract 18% GST. Certain sanitation projects funded by government schemes may get concessional or exempt treatment under specific notifications, but these benefits are limited. In most private or mixed projects, contractors should charge the standard 18% with input tax credit.
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Can rural sanitation and water well projects use SAC 995434?
Rural toilets, basic sanitation structures and local drainage lines can use 995434. Pure drinking water wells or borewells may sometimes be mapped to different codes. Where a project combines local sanitation and minor drainage, this code is often suitable for the contractor’s invoices.
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Is ITC allowed on materials for projects billed under SAC 995434?
Contractors can claim ITC on GST paid for pipes, concrete, manhole covers and fittings used in taxable projects. For the final owner, ITC depends on whether the property is used for business and taxable supplies or is purely residential or charitable with no taxable output.