Prefabricated Buildings Services Under SAC Code 995441
Prefabricated buildings services cover installation of modular cabins, sheds and pre engineered buildings at industrial, commercial and institutional sites. Contractors assemble factory made components, fix them on foundations and complete basic connections so that the unit is ready for use. Under GST, this work is classified under SAC 995441. The SAC code and its GST rate decide how much GST is charged and how the value is shown in GST returns.
Prefabricated Buildings Services GST Rate for SAC Code 995441
Prefabricated buildings services, including installation of modular cabins and pre engineered buildings, are treated as works contract or civil engineering services under GST. Earlier, different ways of splitting supply and installation sometimes produced different effective tax results for similar projects, which made it difficult to keep a consistent tax position.
After the September 2025 rationalisation, most prefabricated building installation services under SAC 995441 generally fall in the 18 percent slab with input tax credit . This standard rate applies where the contractor installs prefabricated units as part of a works contract, unless a specific notification grants concessional treatment for a particular government or social sector project.
The table below gives the latest applicable GST rate for SAC code 995441.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 995441 | Installation, assembly and erection services of prefabricated buildings | 18% with ITC | 18% with ITC | Prefabricated building installation falls under 99544. Building completion and erection service compilations state 18 percent as the applicable rate for such services. |
When raising invoices for services under SAC 995441, contractors should clearly show the taxable value and 18 percent GST so that eligible 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 reporting the tax liability on prefabricated building 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.
These are the main related 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
Prefabricated buildings services under SAC 995441 cover installation of modular cabins, sheds and pre engineered buildings at industrial, commercial and institutional sites. These services are now generally taxed at 18 percent with input tax credit after the September 2025 changes. Contractors and users should confirm that such projects are correctly classified under this SAC code , apply the proper GST rate on every invoice and follow the same classification in GST returns. For large or special purpose installations, it is wise 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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Which services are classified under SAC code 995441?
This code covers installation and erection of complete prefabricated or modular buildings. It includes putting together factory made cabins, site offices, small prefab houses and similar complete units on foundations or supports at the site, using bolts, fasteners or light welding.
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Does SAC 995441 cover installation of prefabricated and modular buildings?
Yes. When ready made building modules are supplied and the contractor’s work is to assemble, align and fix them at site so the building becomes usable, 995441 is usually the right code. It applies to multi unit prefab building systems as well as standalone cabins.
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What is the GST rate on services under SAC 995441?
Installation services under this code usually attract 18% GST. The supply of prefab buildings as goods may have a different HSN rate, but the labour or works contract part for installing those modules is generally taxed at the standard 18% service rate.
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Is SAC 995441 applicable for both temporary and permanent prefab units?
Yes. Whether the prefab building is intended as a temporary site office or a semi permanent structure, the installation activity is similar and generally uses 995441. The duration of use does not change the SAC; it may only influence how the owner treats the asset.
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Are contractors eligible for ITC on projects billed under SAC 995441?
Contractors can usually claim ITC on GST paid for cranes, tools, fasteners and subcontract services used in taxable projects under 995441. Owners can claim ITC if the prefab building supports taxable business activities. If it is for personal use, credit will not be allowed.