Industrial Supply Under SAC Code 996929

Industrial supply services cover specialised utility distribution for large factories, parks and complexes, including power, water, gas and similar services delivered through dedicated networks. Providers manage infrastructure, metering and billing for multiple industrial customers. Under GST, these industrial utility supply and distribution services are classified under SAC 996929. This SAC code and its GST treatment decide how GST applies on such utility service invoices.  This helps industrial clusters control utility costs and get reliable shared infrastructure.

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996929 SAC Code GST Rate

Review old and new GST rates for Industrial Supply under 996929 SAC Code.

Electricity, gas, water and similar utility distribution services under these codes are treated as utility supply and distribution services under GST. In many cases, supply or transmission by recognised utilities enjoys specific exemptions, while commercial or non utility distribution may be taxable.

After the September 2025 rationalisation, wherever these utility services are taxable, the service component is generally placed in the 18 % slab with input tax credit, because network operation and distribution are input intensive. Where services continue to enjoy a notified exemption or zero effective rate, that treatment remains available as per the latest GST notifications.

The table below gives the broad GST treatment for SAC code 996929, showing the standard 18 % slab where taxable and any exempt utility cases as per notification.

SAC Code

996929

Description

Other similar services

New Rate

18 %
Standard

Old Rate

18 %

Notes

Residual distribution / utility services in this group follow the standard services slab of 18% with ITC. There is no targeted rationalisation entry for this exact SAC in the 56th meeting, so it stays at 18%.

Utility providers and industrial park operators should carefully check whether their supply falls under an exempt utility category or a taxable commercial service. Invoices should clearly mention the SAC code, applicable GST rate in % and tax amount so that customers can account for input tax credit correctly where eligible and keep the same treatment in GSTR 1 and GSTR 3B.

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Explore More SAC Codes Under 9969

Practical Classification Guidance

Utility providers, industrial park operators and large consumers should identify whether their contracts relate to exempt utility supply by recognised utilities or taxable commercial distribution services. Using the correct SAC and GST rate in %, and disclosing exemptions properly, helps avoid classification disputes and keeps the input tax credit trail clean for all parties.

Conclusion

Industrial supply services under SAC 996929 cover specialised utility distribution for industrial parks and large complexes. These services are usually treated as taxable commercial utilities, commonly at 18 % with input tax credit on the service portion. Operators should classify each supply carefully, apply the proper GST rate in %, mention the SAC on invoices and keep consistent reporting in GST returns after checking the latest GST notifications.

Frequently Asked Questions

Clear answers to common queries about SAC Code 996929 and GST compliance.

What does SAC code 996929 cover in GST?

SAC 996929 is a residual category for other utility distribution services not covered by specific codes for electricity, gas, water or steam. It includes distribution of certain industrial utilities or mixed services that support factories or complexes with specialised utility supplies.

Does SAC 996929 include other utility distribution services for industrial needs?

Yes. When a provider distributes utilities like compressed air or other special media within an industrial park or large plant, and this does not fall under specific electricity, gas or water codes, such services can be classified under SAC 996929 as other utility distribution.

What GST rate applies to industrial utility supply under SAC 996929?

Most services under SAC 996929 are taxable at 18% under GST. The GST is charged on the value billed for utility distribution. Businesses and providers should check if any special notification covers their exact utility, but generally these are treated as normal taxable services.

When should a provider choose SAC 996929 instead of specific utility SAC codes?

Choose SAC 996929 when the distributed utility is not exactly electricity, water, gas, steam or similar covered by named SAC codes, and there is no more specific category. It is a fallback option to correctly classify other utility type services in GST records and invoices.

Can businesses claim ITC on GST paid for SAC 996929 services?

Yes. Registered businesses receiving such utility services for their taxable activities can usually claim ITC on GST paid, subject to standard conditions. Providers can also claim ITC on eligible inputs like machinery running costs and maintenance used to supply these taxable utility services.

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.