Installation Under SAC Code 995468

Industrial installation services cover installing heavy machinery, production lines, process equipment and support systems in factories, plants and workshops. Service providers handle alignment, grouting, basic hook ups and trial runs so that the equipment is ready for operation. Under GST, this work is classified under SAC 995468. The SAC code and its GST rate decide how much GST is charged and how the value is reported in GST returns . This helps factories start production faster with fewer installation issues.

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995468 SAC Code GST Rate

Review old and new GST rates for Installation under 995468 SAC Code.

Industrial installation services, including equipment installation and plant erection, are treated as works contract or industrial construction services under GST. Earlier, different ways of splitting machinery supply and installation sometimes produced different effective tax outcomes for similar projects, which complicated costing and tax planning for both contractors and industrial clients.

After the September 2025 rationalisation, most industrial installation services under SAC 995468 generally fall in the 18% slab with input tax credit. This standard rate applies where equipment and machinery are installed as part of a works contract, unless a specific notification grants concessional treatment for a particular strategic or government supported scheme.

The table below gives the latest GST rate for services under SAC code 995468.

SAC Code

995468

Description

Other installation services n.e.c.

New Rate

18 %
Standard

Old Rate

18 %

Notes

Classified under installation services in 9954. Not specifically covered in the 56th Council rate change list, so continues at the general 18% with ITC construction service rate.

When issuing invoices for services under SAC 995468, contractors should clearly show the taxable value and 18% GST so that eligible industrial clients can claim input tax credit correctly. 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 industrial 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 full building construction, general infrastructure or specialised repair, another SAC code 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

Industrial installation services under SAC 995468 cover installing heavy machinery, production lines and process equipment in factories, plants and workshops. These services are now generally taxed at 18% with input tax credit after the September 2025 changes. Contractors and project owners should ensure that such contracts are correctly mapped to this SAC code, apply the proper GST rate on every invoice and use the same classification in GST returns. For large or strategic industrial projects, it is wise to study the latest GST guidance and consult a tax professional.

Frequently Asked Questions

Clear answers to common queries about SAC Code 995468 and GST compliance.

Which services fall under SAC code 995468?

This code covers other installation services not covered by specific codes like electrical, plumbing, HVAC, gas or lifts. It includes various specialised installations linked to buildings or civil works that do not have their own detailed SAC entry.

Does SAC 995468 include industrial and equipment installation work?

It can include some industrial equipment installation that is closely tied to building services, as well as other fit outs and fixed installations that support building operations, provided they are not better matched to specific SACs for machinery erection or plant construction.

What GST rate applies to services under SAC 995468?

Services under 995468 are generally taxed at 18% with ITC as a standard installation rate under heading 9954, and no specific lower slab is notified for this residual installation category.

When should a contractor choose SAC 995468 over other installation codes?

Use 995468 when an installation is clearly not electrical, plumbing, HVAC, gas, lift or a clearly defined installation type and still relates to construction. If another code describes the work more precisely, that code should be preferred.

Is ITC available on GST paid for SAC 995468 services?

Yes. Contractors can claim ITC on taxable inputs used for such installations. Recipients can also claim ITC when the installation supports taxable business use and is not blocked by specific rules for capital immovable property or exempt output supplies.

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.