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.