Construction and property
A borewell contractor's GST invoice should record the depth drilled in feet, diameter, casing length and type, rock and soil strata, yield in litres per hour, and any pump, cable and panel supplied. Water well drilling falls under SAC 995434, water well drilling services and septic system installation, at 18%. Separately supplied PVC casing pipes are 18% under 3917, electric submersible pumps under 8413 are 18%, while hand pumps and their parts remain in the 5% schedule.
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Or create these invoices in software, free| Description | HSN/SAC | Qty | Rate (₹) | Taxable (₹) | GST |
|---|---|---|---|---|---|
| Borewell drilling 6.5 inch diameter, 0 to 300 ft | 995434 | 300 FT | 95.00 | 28,500.00 | 18% |
| Borewell drilling 6.5 inch diameter, 301 to 500 ft | 995434 | 200 FT | 115.00 | 23,000.00 | 18% |
| PVC casing pipe 7 inch, 20 ft length | 3917 | 4 NOS | 3,100.00 | 12,400.00 | 18% |
| Submersible pump set 1.5 HP, 15 stage | 8413 | 1 NOS | 21,500.00 | 21,500.00 | 18% |
| Submersible flat cable 3-core 2.5 sq mm | 8544 | 150 MTR | 62.00 | 9,300.00 | 18% |
| Taxable value | ₹94,700.00 | ||||
| GST (CGST + SGST, or IGST if inter-state) | ₹17,046.00 | ||||
| Invoice total | ₹1,11,746.00 | ||||
Sample prices are illustrative. Check the GST rate for your exact item or service before billing.
Rule 46 of the CGST Rules applies to every tax invoice, including this one:
Read more: SAC Codes for Construction Services Under GST (Heading 9954) · Composition Scheme Under GST: Is It Right for Your Business? · E-Way Bill Limit and Rules: When You Need One and When You Don't
The SAC annexure lists water well drilling services and septic system installation as 995434 within site preparation services. Drilling a borewell on the customer's land creates an addition to immovable property, and the service is taxed at 18%. Where the contractor also supplies casing, the composite job is a works contract at the same rate.
Notification 9/2025 lists hand pumps and parts under 8413 and 8413 91 in Schedule I at 5%. Power-driven pumps designed for water, including centrifugal, deep tube-well turbine and submersible pumps, appear in Schedule II at 18%. A contractor installing hand pumps under a rural water scheme must keep them on separate lines from submersible pump sets.
Some services to farmers, such as specific agricultural support services, are exempt, but drilling a borewell is a construction-related service and not generally listed among exempt agricultural services. Do not assume exemption because the customer is a farmer. If you are unsure whether a specific Government scheme payment is exempt, check the scheme and the exemption notification before issuing a bill of supply.
A drilling rig is a truck-mounted machine. Moving your own rig from site to site is not a supply and does not need a tax invoice. Pipes and pumps carried for a customer above ₹50,000 need an e-way bill. Keep stock of casing pipes on the rig accounted for so unused pipes can be explained.
Small borewell contractors with turnover up to ₹50 lakh may choose composition for service providers at 6% and issue bills of supply. Those who sell many pumps and pipes might prefer regular registration to claim credit on purchases, which composition denies.
A borewell that hits no water is still drilling work performed, and the per-foot charge is taxable at 18% unless your contract says no water, no charge. Where you agree to a reduced charge for a dry bore, issue the invoice for the reduced amount; do not invoice the full price and then pass an informal discount. If you have already invoiced and later agree to a reduction, a credit note under section 34 referencing the original invoice reduces your tax liability, provided the customer, if registered, reverses the corresponding credit.
Water well drilling services and septic system installation use SAC 995434, taxed at 18%.
Power-driven water pumps including submersible pumps under HSN 8413 are taxed at 18%. Hand pumps are at 5%.
Plastic tubes and pipes under HSN 3917 are taxed at 18%.
Yes, the taxable value is the per-foot rate multiplied by depth, and 18% GST is charged on that total.
Generally no. Drilling is a construction service. Only services specifically listed in the exemption notification are exempt.
Bill the depth actually drilled at the agreed rate, or the reduced rate your contract provides for dry bores. If a reduction is agreed after invoicing, issue a GST credit note referencing the original invoice rather than adjusting cash informally.
Sources: CBIC — Notification 9/2025-Central Tax (Rate), 17 Sep 2025 · ICAI IDTC — Notification 9/2025-Integrated Tax (Rate) as corrected 18 Sep 2025 · CBIC — Scheme of Classification of Services (SAC annexure)
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