Which SAC code applies to construction contractors?

995411 covers construction services of single dwelling or multi-dwelling buildings. Related codes you may need are 995461 for electrical installation services, and 995468 for other installation services. Classification is your accountant's call, not a template's.

What GST rate applies?

18%, with 12% and 5% for specified categories. Rates are revised by notification from time to time, so confirm the rate in force on the date of supply against the CBIC rate finder rather than relying on any figure printed on a website.

Do I need a GST registration to invoice?

Not necessarily. Below the registration threshold you can issue a bill of supply rather than a tax invoice, and you do not charge GST. Once registered, a tax invoice with all the Rule 46 particulars becomes mandatory. The threshold differs for goods and services and for special category states.

Can I use this format as-is?

The structure and the fields, yes. The codes, rates and treatment need checking against your own facts. This page tells you what the invoice needs to carry; it cannot tell you what your specific supply is classified as.

Invoice format for construction contractors

Construction is billed under SAC 995411 as a works contract, which is a supply of service even though it includes materials. Bill through running account bills against measured work.

SAC codes you are likely to need

SAC	Covers
995411	Construction services of single dwelling or multi-dwelling buildings
995461	Electrical installation services
995468	Other installation services

Typical rate: 18%, with 12% and 5% for specified categories

Lines this trade needs that a generic template misses

Running account bill number, and whether it is interim or final
Measured quantities against the bill of quantities, item by item
Cumulative value certified to date, and the amount claimed in this bill
Retention money withheld, shown as a deduction
Advance adjusted against this bill

What goes wrong on these invoices

Splitting a works contract into a materials invoice and a labour invoice. Section 2(119) treats a works contract as a composite supply of service; artificially separating it does not change the treatment and creates a problem at assessment.

Not showing retention as a deduction on the face of the bill, which leaves both sides disagreeing about the outstanding amount for the rest of the project.

Raising the final bill without adjusting the mobilisation advance, so the ledger never closes cleanly.

Rates for construction vary considerably by category of project. Confirm the applicable rate for your specific work.

The particulars every tax invoice needs

Beyond the trade-specific lines above, Rule 46 of the CGST Rules requires your name, address and GSTIN; a consecutive serial number unique within the financial year and no longer than sixteen characters; the date; your customer's name, address and GSTIN where registered; the place of supply; a description of the supply; the SAC code; quantity and unit; taxable value; the rate and amount of tax split into CGST and SGST or IGST; whether tax is payable on reverse charge; and a signature.

The invoice generator lays all of that out and works out the tax split for you. The numbering tool checks your serial format against the sixteen-character limit.

Worked example

Tax invoice

Description	SAC	Amount
RA Bill 4: brickwork and plaster, Block B, as per measurement sheet	995411	4,20,000.00
1 lot at 4,20,000.00

Taxable value	4,20,000.00
CGST 9%	37,800.00
SGST 9%	37,800.00
Total	4,95,600.00

Rupees Four Lakh Ninety Five Thousand Six Hundred Only

Shown as an intra-state supply at 18% for illustration. Your rate and split depend on your classification and place of supply.

Build this invoice for real

Common questions

Which SAC code applies to construction contractors?: 995411 covers construction services of single dwelling or multi-dwelling buildings. Related codes you may need are 995461 for electrical installation services, and 995468 for other installation services. Classification is your accountant's call, not a template's.
What GST rate applies?: 18%, with 12% and 5% for specified categories. Rates are revised by notification from time to time, so confirm the rate in force on the date of supply against the CBIC rate finder rather than relying on any figure printed on a website.
Do I need a GST registration to invoice?: Not necessarily. Below the registration threshold you can issue a bill of supply rather than a tax invoice, and you do not charge GST. Once registered, a tax invoice with all the Rule 46 particulars becomes mandatory. The threshold differs for goods and services and for special category states.
Can I use this format as-is?: The structure and the fields, yes. The codes, rates and treatment need checking against your own facts. This page tells you what the invoice needs to carry; it cannot tell you what your specific supply is classified as.