Construction Assembly Under SAC Code 995444

Construction assembly services cover installing sheds, small structures, garden cabins and similar pre fabricated units at homes, farms, factories and commercial sites. Service providers assemble ready parts, anchor them to the base and complete basic finishing. Under GST, this work is classified under SAC 995444. The SAC code and its GST rate decide how much GST is charged and how the value is shown in GST returns. These assemblies are common in small warehouses, farms, gardens and temporary workspaces.

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995444 SAC Code GST Rate

Review old and new GST rates for Construction Assembly under 995444 SAC Code.

Construction assembly services, including shed installation and garden shed installation, are treated as works contract or civil engineering services under GST. Earlier, different splitting of supply and assembly sometimes created different effective tax outcomes for similar projects, which caused confusion for contractors and customers.

After the September 2025 changes, most construction assembly and shed installation services under SAC 995444 generally come under the 18 percent slab with input tax credit . This standard rate applies where prefabricated elements are assembled and fixed as part of a works contract, unless a specific notification grants a concessional rate for a particular government or social sector project.

The table below explains the current GST rate applicable to SAC code 995444 services.

SAC Code

995444

Description

Other assembly and erection services n.e.c.

New Rate

18 %
Standard

Old Rate

18 %

Notes

Residual assembly and erection services under 995444 attract 18 percent as part of the building completion and erection category under 9954.

When raising invoices for services under SAC 995444, 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 construction assembly and shed installation 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 main nature of the contract. If the work is more focused on new building construction, general infrastructure or routine maintenance, another SAC within 9954 may be more suitable. Correct SAC selection and GST rate application help reduce future disputes, support a clean

Conclusion

Construction assembly services under SAC 995444 cover installation of sheds, cabins and similar structures using prefabricated components at homes, farms, factories and commercial 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 keep the same classification in GST returns . For large or government supported projects, it is wise to check the latest GST notifications and seek expert advice.

Frequently Asked Questions

Clear answers to common queries about SAC Code 995444 and GST compliance.

What does SAC code 995444 cover in GST?

This code covers construction and assembly of small simple structures like sheds, open sided storage, parking shelters and small utility structures. It applies when the work creates basic covered space without complex building features like full rooms, staircases or heavy services.

Does SAC 995444 include shed and small structure assembly?

Yes. Building tin sheds, lightweight godowns, small garages and basic covered workspaces is generally classified under 995444. These structures often use steel columns, simple roofing sheets and limited masonry, and are less complex than full commercial or residential buildings.

What GST rate applies to services under SAC 995444?

Services under this code typically attract 18% GST. The same rate applies whether the client is an individual farmer, factory owner or any other business. Goods used in the shed may have their own HSN, but the service element is taxed at 18%.

When should a contractor use SAC 995444 instead of general construction codes?

Use 995444 when the contract is mainly for small sheds or simple lightweight structures. When the project involves proper multi floor or multi room buildings, more detailed building construction SAC codes for residential, commercial or institutional buildings should be used instead.

Can ITC be claimed on GST paid for SAC 995444 projects?

Contractors can claim ITC on taxable inputs for these projects. Clients can claim ITC when the shed supports taxable business activities, such as storage for a manufacturing business. If the shed is for personal non business use, ITC is not allowed for the recipient.

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.