Generate GST-compliant invoices for construction work, works contracts, real estate services, civil engineering, and building materials with correct HSN/SAC codes.
| # | Description | HSN/SAC | Qty | Unit | Rate ₹ | Tax% | Amount |
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Construction and real estate is one of the most complex sectors for GST invoicing in India. Different types of construction work attract different GST rates, and Input Tax Credit (ITC) rules are highly restrictive for immovable property. Understanding the correct rate and format is critical for compliance.
A works contract is a contract for carrying out construction, fabrication, installation, or repair of immovable property. Under GST, works contracts for residential property attract 12% GST, while commercial works contracts attract 18% GST. Affordable housing projects approved by RERA with value up to ₹45 lakhs attract only 1% GST.
Section 17(5) of the GST Act blocks Input Tax Credit for goods and services used in construction of immovable property (except plant and machinery). This means contractors cannot claim ITC on cement, steel, or other materials used in building construction for personal use or for a customer. Exceptions apply when the property is for further supply (e.g., builder selling apartments).
Construction invoices use different rates: 12% for works contracts (residential), 18% for commercial construction, 28% for cement.
Use SAC 995422 for repair/maintenance, 995411 for new residential construction, 995412 for commercial buildings.
Separately invoice building materials (with HSN codes) and construction services (with SAC codes) where applicable.
Affordable housing (≤₹45L value): 1% GST. Regular residential: 12% GST. Commercial: 18% GST. Note: ITC is generally blocked for immovable property.
Always include the work order number, project name, and milestone number in your invoice.
For long-duration projects, issue stage-wise invoices as milestones are achieved per the contract terms.
