that`s how they come together). In the case of composite services that are of course bundled, the whole thing is treated in the same way as such a main service and the tax is paid at the GST rate applicable to the main service. This means that the tax rate for the principal supply applies to the entire supply. In this situation, we need to know whether the main supply is a material or a service. If it is a material, the HSN code of that material will be used for that construction contract, but if the main delivery is a service, the SAC code of that service will be used for that construction contract. For example, if it is a construction service, which is a composite supply employment contract, use the code SAC 9954, find another categorization under the heading 9954, for example, it is a “construction service of single-family homes or multi-storey residential buildings”, then the CODE SAC is 995411. Mixed supplies/artificially grouped goods or services: A mixed supply consists of two or more individual supplies (of goods or services or both), which are not grouped by nature, but artificially grouped. In the case of mixed services, the total delivery is treated in the same way as the delivery for which the highest tax rate applies. In this situation, we need to know if an item that attracts the highest rate is a material or a service. If it is a material, the HSN code of that material will be used for that construction contract, but if it is a service, the SAC code of that service will be used for that construction contract. Therefore, the tax liability of construction contracts is the means of determining the HSN/SAC code for the construction contract. This may vary from case to case. Do you need to use the SAC/HSN code: – The use of the HSN code and the SAC code depends on the dealer`s sales in the previous fiscal year.
According to the law: The entrepreneur has the right to demand an input tax credit for all preliminary and input services used in the provision of contractual labour services, subject to the provisions of § 17 (5) (voluminous credit). Section 17(5)(c) of the CGST Act 2017 restricts the consignee to using ITC for contracted works services. Services classified under “work” (detailed character), (a) A civil structure or other original works intended primarily for purposes other than commerce, industry or business To better understand this, let`s take an example of SAC code 9954. Dear Mohan Amdekar, Regarding your request regarding the SAC/HSN code for the construction contract, it is suggested that the HSN/SAC code of the work contact may vary from case to case. The HSN code stands for Harmonized System Nomenclature. The HSN code is used to categorize all kinds of documents for GST purposes. Similarly, ISC stands for Service Accounting Code and is used to categorize all kinds of services for GST purposes. Now note that all SAC code starts with 99.
Initial 99 means that the code is a SAC code, if the code 99 is specified, it means that the delivery is of the nature of a service. After 99, the third digit of the SAC code describes the type of service. mts per house in a residential project approved by the competent authority under: (a) names and addresses of the persons on whose behalf the works contract is carried out; General construction of underground/terrestrial/submarine pipelines, communication lines and power lines (cables); pumping stations and related structures; Transformer stations and related works. (c) works if they are intended for the construction of immovable property (with the exception of plant and machinery), unless it is an upstream service for the subsequent supply of works; Composite delivery of works contracts to the head office, state government, Union territory, local authority, government agency or government agency by way of construction, construction, commissioning, installation, completion, equipment, repair, maintenance, renovation or amendment of the composite construction contract and related services relating to offshore construction contracts related to oil exploration and gas, and -production in the offshore area more than 12 nautical miles from the closest point to the corresponding baseline. Therefore, the taxpayer may benefit from GST credits when works contracts are awarded for: a works contract is a contract in which the transfer of ownership of goods (whether as property or in any other form) is involved in the performance of such a contract and the construction contract, construction, manufacture, completion, construction, installation, equipment, improvement, modification, repair, maintenance, renovation, modification or commissioning of real estate. (d) details of the payments received for each works contract; and the SAC code stands for Service Accounting Code. As part of the Goods and Services Tax, all tax invoices issued by the service provider must contain the respective SAC code. The SAC code applicable to works contracts is listed in the following table. Click here for the updated list of HSN Material Code and ISC Service Code and the applicable GST rate.
Construction services of industrial buildings such as buildings used for production activities (for assembly line activities), workshops, warehouses and other similar industrial buildings. c) A civil structure or other original work related to the “in situ rehabilitation of existing slums using land as a resource” (db) A civil structure or other original work related to “houses built under the credit subsidy program for the economically weak section (EWS)/low-income group/middle-income group – 1 (MIG-1)/middle-income group – 2 (MIG – 2)” as part of the housing mission for all (urban)/Pradhan Mantri Awas Yojna (urban); or have been acquired. Disclaimer: The above prices will be charged until the notification of GST (rate) No. 05/2020 of 16. October 2020 updated to the best of our knowledge and beliefs. We obtained the HSN code information from the master codes published in the NIC`s GST tps electronic invoicing system. Due to updates by the government, there may be discrepancies. Please note that we are not responsible for false information. If you require information on the “effective date” of each GST or CESS rate, please visit the CBIC website.
Do more than just verify HSN/SAC codes with ClearTax GST, India`s most reliable billing and GST solution, where reconciliation is simplified with smart, integrated validations and tools. Total delivery of work contracts consisting primarily of earthworks (i.e. more than 75 % of the value of the works contract), which is made available to the central government, the state government, the union territory, a local authority, a government agency or a government body. The Service Accounting Code, also known as the SAC Code, is a service classification system developed by the Service Tax Department of India. Using the GST-ISC code, GST rates for services are set in five plates: 0%, 5%, 12%, 18% and 28%. .