Building Alteration Services Under SAC Code 995449
Building alteration services cover changes to existing structures such as internal layout changes, wall shifting, small extensions and remodelling of rooms or floors. Contractors handle demolition, new walls, lintels and related work without building a full new structure. Under GST, this work is classified under SAC 995449. The SAC code and its GST rate decide how much GST is charged and how the value is recorded in GST returns.
Building Alteration Services GST Rate for SAC Code 995449
Building alteration services, including remodelling and small extensions, are treated as works contract or repair and renovation services under GST. In the earlier years, different ways of splitting labour and material or combining alteration with new construction sometimes led to different effective tax outcomes for similar jobs, which made planning and comparison difficult for owners and contractors.
After the September 2025 rationalisation, most building alteration and remodelling services under SAC 995449 generally fall in the 18 percent slab with input tax credit. This standard rate applies to internal layout changes, small extensions and similar alteration work unless a specific notification prescribes a different treatment for a particular scheme.
The table below gives the latest GST rate for services under SAC code 995449.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 995449 | Services involving Repair, alterations, additions, replacements, maintenance of the constructions covered above. | 18% with ITC | 18% with ITC | Repairs and alterations related to prefabricated and assembled structures follow the works contract rule at 18 percent. No specific HSN wise rate change is flagged for this code in the 56th Council annexures. |
When issuing invoices for services under SAC 995449, contractors should clearly show the taxable value and 18 percent GST so that eligible clients can claim input tax credit wherever allowed. The same SAC code and rate should also be used in GSTR 1 for outward supplies and in GSTR 3B while reporting the tax liability on building alteration and remodelling services.
Explore Other SAC Codes Under 9954
This SAC code is part of the broader construction services group 9954, which covers construction of residential and commercial 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, altered or repaired.
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 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 input tax credit trail, and make GST records easier to justify during audits or departmental checks.
Conclusion
Building alteration services under SAC 995449 cover changes to existing buildings such as layout changes, wall shifting, room remodelling and small extensions. These services are now generally taxed at 18 percent with input tax credit after the September 2025 changes. Contractors and property owners should ensure that such contracts are correctly classified under this SAC code, charge the correct GST rate on all invoices and use the same classification in GST returns. For large or sensitive alteration projects, it is sensible to review the latest GST guidance 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 995449 in GST?
This code is used for major alteration and remodelling services for existing buildings. It covers projects where layouts are changed, structures modified and interiors significantly upgraded, while keeping the basic building frame in place.
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Does SAC 995449 cover building alteration and remodelling work?
Yes. Projects like converting old offices to modern open layouts, changing room arrangements, adding mezzanine floors or performing heavy internal remodelling are normally classified under 995449. It applies when the work is more than simple repair or repainting and clearly improves or changes the building.
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What GST rate is charged on services under SAC 995449?
Services under this code usually attract 18% GST. These are treated as works contract or construction services for GST. Unless a specific notification grants relief for a particular type of remodelling, contractors should charge the standard 18% rate with full input tax credit on eligible inputs.
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Are structural changes and layout modifications included in SAC 995449?
Yes. Structural strengthening, shifting walls, creating new openings, adding beams or modifying slabs inside an existing building can all fall under this code, provided they form part of a planned alteration or remodelling contract rather than general small repair work.
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Is ITC available for contractors providing services under SAC 995449?
Contractors can normally claim ITC on GST paid for materials, labour and services used in taxable remodelling projects. Clients can claim ITC if the remodelled building is used for taxable business activities and if ITC is not blocked due to the way the cost is capitalised.