Urban Planning Services Under SAC Code 998325
Urban planning services focus on the overall planning of cities and towns, including land use, transport corridors, utilities and public spaces. Urban planners work with authorities and developers on city planning services to make growth more sustainable and organised. Their work guides zoning, road networks and infrastructure timelines. Under GST, such urban planning services are classified under SAC 998325. This SAC code and its GST rate decide how GST is charged on urban planning and city development fees.
Urban Planning Services GST Rate for SAC Code 998325
Architecture, planning and design consulting services under these SAC codes are treated as professional and technical services under GST. The taxable value normally includes design fees, planning charges, consulting retainers and project based professional fees, excluding any pure reimbursements that are recovered from clients at actuals with proper supporting documents.
After the September 2025 rationalisation, most taxable architecture and planning services generally fall within the 18% GST slab with input tax credit for eligible registered recipients. Export of services may qualify as zero rated supplies subject to conditions, and any special notifications for specific categories of projects or authorities should be reviewed before raising invoices.
The table below explains the prevailing GST treatment for SAC code 998325, indicating the usual 18% slab for taxable architecture or planning services and any notified exceptions.
| Code | Description | Old GST Rate (till 21 Sep 2025) |
New GST Rate (from 22 Sep 2025) |
Notes on change / inclusions |
|---|---|---|---|---|
| 998325 | Urban planning services | 18% with ITC | 18% with ITC | Urban planning under 998325 appears among other 9983 professional services; practical guidance to architects and planners states that such services are taxed at 18% under GST. |
Architecture firms, planning consultants and design studios using this SAC code should mention professional fees, GST rate in % and GST amount clearly on tax invoices. The same SAC and rate should be mirrored in GSTR 1 and GSTR 3B so that clients can claim input tax credit properly and remain comfortable during any GST assessment or audit.
Explore Other SAC Codes Under 9983
These SAC codes fall under the business and management consulting services group 9983, which covers management consulting, business consulting, IT consulting, architecture services and broader planning and design consulting. Each six digit SAC within this group focuses on a different style of professional or technical service for GST purposes.
These are the main related six-digit SAC codes under 9983.
Consultants and design professionals should select the SAC that most accurately describes their primary engagement, whether it is commercial architecture, heritage restoration, urban planning, rural land planning, master planning services or related consulting. Using the correct SAC and GST rate in % makes billing transparent, supports input tax credit for clients and reduces the risk of disputes during GST scrutiny.
Conclusion
Consultants and design professionals should select the SAC that most accurately describes their primary engagement, whether it is commercial architecture, heritage restoration, urban planning, rural land planning, master planning services or related consulting. Using the correct SAC and GST rate in % makes billing transparent, supports input tax credit for clients and reduces the risk of disputes during GST scrutiny.
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 does SAC code 998325 cover in GST?
SAC 998325 covers city and urban development planning services. It includes preparation of master plans, development plans, zoning proposals, transport plans and urban policy studies for towns and cities. The goal is to guide future growth, land use, infrastructure and public facilities in a planned way.
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Does SAC 998325 include city and urban development planning services?
Yes. Assignments like preparing city development plans, smart city proposals, traffic and transport plans, zoning maps and urban renewal schemes generally fall under SAC 998325. These services are usually provided to governments, development authorities, consultants or large private townships for long term city level planning work.
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What is the GST rate on urban planning services under SAC 998325?
Urban planning services under SAC 998325 are normally taxed at 18%. GST is charged on consultancy fees, report preparation and related professional services. In some government contracts there may be specific exemptions or special conditions, so providers should always check the exact notification and tender terms.
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Should master plan and zoning consultancy use SAC 998325?
Yes. When the project involves preparing or revising a city master plan, zoning regulations or urban renewal plan, invoices usually mention SAC 998325. If the same consultant also does detailed architectural or engineering design for specific projects, those parts are billed under separate SAC codes for design work.
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Can government bodies and developers claim ITC on SAC 998325 services?
Government departments that are not registered under GST generally cannot claim ITC. Private developers and special purpose vehicles can often claim ITC on SAC 998325 services when the resulting projects lead to taxable supplies, such as sale or leasing of commercial property. Proper documentation is important.