Insulation Services Under SAC Code 995465
Thermal insulation services cover installing insulation on roofs, walls, ducts, pipes and equipment to control temperature loss or gain. Service providers fit insulation materials, vapour barriers and jackets so that buildings and systems become more energy efficient. Under GST, this work is classified under SAC 995465. The SAC code and its GST rate decide how much GST is charged and how the value is recorded in GST returns . This helps cut energy bills and makes buildings and systems more comfortable.
Insulation Services GST Rate for SAC Code 995465
Thermal insulation services, including home insulation and pipe insulation services, are treated as works contract or construction related services under GST. Earlier, different ways of clubbing insulation with HVAC or construction sometimes produced different effective tax outcomes for similar projects, which made costing and tax planning harder for contractors and clients.
After the September 2025 rationalisation, most thermal insulation services under SAC 995465 generally fall in the 18% slab with input tax credit . This standard rate applies where insulation is supplied and installed as part of a works contract, unless a specific notification grants concessional treatment for a particular energy efficiency or public scheme.
The table below shows the latest standard GST rate for SAC code 995465.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 995465 | Insulation services | 18% with ITC | 18% with ITC | Thermal and acoustic insulation works form part of building completion services. Updated construction service compilations show such completion services at 18 percent GST, with no distinct post 22 September 2025 change for this SAC. |
When issuing invoices for services under SAC 995465, contractors should clearly show the taxable value and 18% GST so that eligible clients can claim input tax credit wherever permitted. The same SAC code and rate should also be used consistently in GSTR 1 and GSTR 3B while reporting the tax liability on thermal insulation 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, installation and building completion services. Each six digit SAC within this group helps match contracts to the main type of structure, system or facility being created, installed or maintained.
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 full building construction, general infrastructure or specialised repair, 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
Thermal insulation services under SAC 995465 cover installing insulation on roofs, walls, ducts, pipes and equipment to control heat loss or gain. These services are now generally taxed at 18% with input tax credit after the September 2025 changes. Contractors and users should check 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 energy saving projects, it is wise to review the latest GST rules and take professional 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 come under SAC code 995465?
This code covers insulation services. It includes thermal, acoustic and vibration insulation for pipes, ducts, walls, roofs and equipment in buildings or plants, often using materials like mineral wool, foam or specialised boards.
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Does SAC 995465 cover thermal, pipe and home insulation work?
Yes. Insulating hot and cold pipes, ducts, storage tanks, roofs and walls to control temperature or noise can be classified under 995465. It applies to both industrial insulation and building insulation works.
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What GST rate applies to insulation services under SAC 995465?
Insulation services under 995465 generally attract 18% GST with ITC, like other installation and special trade services listed in the construction chapter.
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Should roof and wall insulation jobs use SAC 995465 on invoices?
Yes. When insulation is the main job, contractors should use 995465 even if it is only roof or wall insulation. This keeps classification clear and separate from pure civil construction or simple interior finishing codes.
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Is ITC allowed on GST paid for SAC 995465 services?
Contractors can claim ITC on insulation materials and labour for taxable projects. Recipients can claim ITC when insulation improves premises used for taxable business, such as cold storage or offices. For purely personal residential use, ITC on such expenses is not allowed.