9987 SAC Code: Maintenance, repair & installation services

SAC code 9987 is an essential classification for maintenance services in India, encompassing a broad spectrum of activities related to repairs, cleaning, and the overall upkeep of various assets and equipment. This code plays a vital role in determining the applicable GST rate for maintenance services nationwide. It covers a diverse range of maintenance services, including but not limited to:

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Categorisation of SAC Code 9987

SAC Code 9987 under GST can be classified in the following ways:

SAC Code

9987

Description

(i) Services by way of housekeeping, such as plumbing, carpentering, etc. where the person supplying such service through electronic commerce operator is not liable for registration under sub-section (1) of section 22 of the Central Goods and Services Tax Act, 2017.

New Rate

5% without ITC

Old Rate

5% without ITC

Notes

Housekeeping services such as plumbing or carpentry, supplied through an e-commerce operator by a supplier not required to register, are taxed at 5% paid by the operator, and input tax credit cannot be claimed. This rule has applied since 25 January 2018, so the earlier rate was also 5%. Source: Notification 11/2017-Central Tax (Rate), S. No. 25(i) as amended by 01/2018.

SAC Code

998711

Description

Maintenance and repair services of fabricated metal products, except machinery and equipment.

New Rate

18% with ITC

Old Rate

18% with ITC

Notes

Standard industrial MRO service. Classified under maintenance and repair heading with typical 18% GST; no specific concessional entry in the new structure.

SAC Code

998712

Description

Maintenance and repair services of office and accounting machinery

New Rate

18% with ITC

Old Rate

18% with ITC

Notes

Includes typewriters, calculators, non-computer office machines. Treated like other technical repair services at 18% with ITC.

SAC Code

998713

Description

Maintenance and repair services of computers and peripheral equipment

New Rate

18% with ITC

Old Rate

18% with ITC

Notes

Computer repair, AMC, and peripheral servicing are consistently treated as 18% IT services; no rate cut under GST 2.0.

SAC Code

998714

Description

Maintenance and repair services of transport machinery and equipment

New Rate

18% with ITC

Old Rate

18% with ITC

Notes

5% with input tax credit when the service is maintenance, repair or overhaul of aircraft or ships, including their engines and parts. Repair of other transport equipment is taxed at 18%. Source: Notification 11/2017-Central Tax (Rate), S. No. 25(ia) and 25(ib), inserted by 02/2020 and 02/2021.

SAC Code

998715

Description

Maintenance and repair services of electrical household appliances

New Rate

18% with ITC

Old Rate

18% with ITC

Notes

Repair of fridges, washing machines, mixers etc. Standard consumer-service rate is 18%; no slab shift.

SAC Code

998716

Description

Maintenance and repair services of telecommunication equipments and apparatus

New Rate

18% with ITC

Old Rate

18% with ITC

Notes

Repair of telecom devices is aligned with other telecom / IT repair services at 18% GST.

SAC Code

998717

Description

Maintenance and repair services of commercial and industrial machinery.

New Rate

18% with ITC

Old Rate

18% with ITC

Notes

Industrial MRO contracts (plant, heavy equipment) are standard professional services taxed at 18%.

SAC Code

998718

Description

Maintenance and repair services of elevators and escalators

New Rate

18% with ITC

Old Rate

18% with ITC

Notes

Lift and escalator servicing is treated as a technical service distinct from erection/installation; typical GST remains 18%.

SAC Code

998719

Description

Maintenance and repair services of other machinery and equipments

New Rate

18% with ITC

Old Rate

18% with ITC

Notes

Residual repair code for machinery that follows the same 18% general services slab.

SAC Code

998721

Description

Repair services of footwear and leather goods

New Rate

18% with ITC

Old Rate

18% with ITC

Notes

Shoe / leather repair is grouped with other personal-goods repair; classification tables put such services in the standard 18% band.

SAC Code

998722

Description

Repair services of watches, clocks and jewellery

New Rate

18% with ITC

Old Rate

18% with ITC

Notes

Watch and jewellery repair are specialised but still taxed as general repair services at 18% GST.

SAC Code

998723

Description

Repair services of garments and household textiles

New Rate

18% with ITC

Old Rate

18% with ITC

Notes

Tailoring itself can have concessional entries, but repair / mending services under this code are generally treated as 18%.

SAC Code

998724

Description

Repair services of furniture

New Rate

18% with ITC

Old Rate

18% with ITC

Notes

Furniture repair and refurbishing fall into general repair services and are taxed at 18%.

SAC Code

998725

Description

Repair services of bicycles

New Rate

18% with ITC

Old Rate

18% with ITC

Notes

Bicycle repair is a personal-goods service; classification practice keeps this in the 18% slab.

SAC Code

998726

Description

Maintenance and repair services of musical instruments

New Rate

18% with ITC

Old Rate

18% with ITC

Notes

Musical instrument servicing is another niche repair service in the standard 18% band.

SAC Code

998727

Description

Repair services for photographic equipment and cameras

New Rate

18% with ITC

Old Rate

18% with ITC

Notes

Camera repair is aligned with other photography-related services that are typically taxed at 18%.

SAC Code

998729

Description

Maintenance and repair services of other goods n.e.c.

New Rate

18% with ITC

Old Rate

18% with ITC

Notes

Residual personal / household goods repair; treated as 18% like other maintenance services.

SAC Code

998731

Description

Installation services of fabricated metal products, except machinery and equipment.

New Rate

18% with ITC

Old Rate

18% with ITC

Notes

Installation of metal structures and products (excluding machinery) is a work-contract-type service normally taxed at 18% when supplied as standalone service.

SAC Code

998732

Description

Installation services of industrial, manufacturing and service industry machinery and equipment.

New Rate

18% with ITC

Old Rate

18% with ITC

Notes

Machinery erection and commissioning is recognised as a standard taxable service at 18%; slab rationalisation does not alter it.

SAC Code

998733

Description

Installation services of office and accounting machinery and computers

New Rate

18% with ITC

Old Rate

18% with ITC

Notes

Installation of office machines and computers is aligned with IT / office infrastructure services at 18%.

SAC Code

998734

Description

Installation services of radio, television and communications equipment and apparatus.

New Rate

18% with ITC

Old Rate

18% with ITC

Notes

Installation of broadcast and telecom equipment is treated as technical installation service with 18% GST.

SAC Code

998735

Description

Installation services of professional medical machinery and equipment, and precision and optical instruments.

New Rate

18% with ITC

Old Rate

18% with ITC

Notes

Hospital and diagnostic equipment installation is taxed at 18% as professional technical work, separate from GST on the equipment itself.

SAC Code

998736

Description

Installation services of electrical machinery and apparatus n.e.c.

New Rate

18% with ITC

Old Rate

18% with ITC

Notes

Electrical-machinery installation follows the same 18% standard services rate.

SAC Code

998739

Description

Installation services of other goods n.e.c.

New Rate

18% with ITC

Old Rate

18% with ITC

Notes

Residual installation category; typical commercial supplies are taxed at 18%.

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Scope of SAC Code 9987

Services covered under SAC code 9987 include:

  • Repairs: This includes the repair and restoration of assets and equipment such as machinery, vehicles, electronic devices, appliances, and infrastructure.
  • Cleaning: It involves the cleaning, sanitization, and maintenance of premises, buildings, offices, residential spaces, industrial facilities, and other areas. This includes services like janitorial services, pest control, waste management, and environmental cleaning.
  • Upkeep and General Maintenance: This category comprises general maintenance and upkeep services for assets and equipment, ensuring their optimal functioning and longevity. It includes activities such as routine inspections, preventive maintenance, lubrication, adjustments, calibration, and small-scale replacements.

Frequently Asked Questions

Clear answers to common queries about SAC Code 9987 and GST compliance.

What is SAC code 9987?

SAC 9987 is the heading for “maintenance, repair and installation (except construction) services”. It covers repair, servicing and installation of machinery, equipment, appliances, vehicles and other movable items, but excludes construction related works which are classified under SAC 9954 and other construction codes.

What services come under SAC code 9987?

Services like repairing machines, servicing vehicles, maintenance of equipment, annual maintenance contracts (AMCs) for plant, office equipment or electronics, and installation of machinery that is not part of building construction normally fall under 9987. It mainly deals with upkeep and installation of movable assets, not buildings.

What is the GST rate for SAC code 9987 services?

Most repair, maintenance and installation services under SAC 9987 attract 18% GST. Certain specific services may be exempt or have special treatment, but as a general rule business to business repair and AMC services are taxed at 18% with input tax credit available to eligible recipients.

What is the TDS rate for SAC code 9987?

For income tax, payments for repair, maintenance and AMC services are usually covered under section 194C or section 194J depending on contract nature. In many common cases, TDS is 2% for non individuals and 1% for individuals or HUFs. Always confirm current rates and section applicability.

What is the SAC code for repair and maintenance services?

In GST, repair and maintenance of machinery, equipment, vehicles or similar movables is generally classified under heading 9987. The detailed 6 digit or 8 digit code changes with type of asset, for example vehicle repair, computer repair, industrial machinery servicing or other specific service categories.

Are labour charges included under SAC code 9987?

Yes. Labour only repair, servicing or installation, as well as contracts where you charge for both labour and parts, are covered under SAC 9987 when the main purpose is repair or maintenance. Your invoice can show labour and parts separately, but the service classification remains under this heading.

What is the HSN/SAC code 9987 used for?

Code 9987 is used to identify non construction repair, maintenance and installation services in GST returns and invoices. It helps the department and taxpayers correctly classify AMC contracts, equipment servicing, workshop jobs and similar services, separate from sale of spare parts or construction activities.

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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.

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