Construction and property

GST invoice format for a civil contractor (RA bill)

A civil contractor's GST invoice is usually a running account (RA) bill. Beyond the standard fields it should name the work order and its date, the bill number in the RA series, the measured quantity this period against the cumulative quantity, SAC 9954 with the correct sub-code, and deductions such as retention money, mobilisation advance recovery and GST TDS. Since a composite works contract is one supply, the whole contract value is taxed at the works contract rate, which is 18% for most private and government building work.

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Sample civil contractor invoice

Description	HSN/SAC	Qty	Rate (₹)	Taxable (₹)	GST
RCC work M25 in columns and slabs incl. shuttering, steel and concrete (composite works contract)	995414	42 CUM	9,800.00	4,11,600.00	18%
Brick masonry 230 mm in CM 1:6 for superstructure walls	995456	35 CUM	6,200.00	2,17,000.00	18%
Internal plaster 12 mm in CM 1:4	995472	620 SQM	310.00	1,92,200.00	18%
Excavation in ordinary soil for foundations incl. disposal within 50 m	995433	180 CUM	260.00	46,800.00	18%
PCC 1:4:8 below footings	995454	24 CUM	5,400.00	1,29,600.00	18%
Taxable value				₹9,97,200.00
GST (CGST + SGST, or IGST if inter-state)				₹1,79,496.00
Invoice total				₹11,76,696.00

Sample prices are illustrative. Check the GST rate for your exact item or service before billing.

Extra fields a civil contractor invoice needs

Work order number and date: Every RA bill is raised against a specific work order or letter of award. Quoting it lets the client's engineer match the bill to the approved BOQ and stops disputes over which contract a payment belongs to.
RA bill sequence (RA-1, RA-2, Final): Civil jobs are billed in stages. Numbering each bill as a running account bill within your normal GST invoice series shows the client and the auditor how far the contract has progressed and which bill is the final one.
Measurement book reference: Quantities of excavation, PCC, RCC and brickwork are certified in the measurement book. Printing the MB page or joint measurement sheet number ties each line on the invoice to a quantity the site engineer has already signed.
Previous, current and cumulative quantity: Clients check that you are not billing the same cubic metre twice. A three-column layout showing up-to-previous, this bill and cumulative quantity makes the taxable value of the current bill easy to verify.
Retention and advance recovery: Most contracts hold back a percentage as retention and recover mobilisation advance in instalments. Showing these below the tax total, rather than reducing the taxable value, keeps GST calculated on the full contract value of the work done.
Site address and place of supply: For construction services the place of supply is where the immovable property is located. Printing the full site address, separate from the client's billing address, justifies charging CGST plus SGST of the site's state.

Standard GST invoice fields

Rule 46 of the CGST Rules applies to every tax invoice, including this one:

Supplier name, address and GSTIN
Consecutive invoice number (max 16 characters, unique for the year)
Date of issue
Customer name, address and GSTIN (if registered)
Place of supply with state name
HSN/SAC code per item
Description, quantity and unit
Taxable value after discounts
GST rate and CGST + SGST or IGST amounts
Signature or digital signature

GST rules that matter for a civil contractor

One rate for the composite works contract

When a civil contractor supplies cement, steel, sand and labour together for building work, the law treats it as a single composite supply of works contract service under heading 9954. You do not split the bill into goods at their own rates and labour at 18%. After the September 2025 rationalisation, Notification 15/2025-Central Tax (Rate) moved the remaining 12% works contract entries, including earthwork-heavy contracts for Government and the matching sub-contracts, to 18%, so for most civil contractors the entire RA bill value now carries 18% GST with input tax credit available on materials.

Place of supply is the site, not the client's office

Section 12(3) of the IGST Act fixes the place of supply for services directly related to immovable property at the location of that property. A Pune contractor building a warehouse in Nashik charges CGST and SGST of Maharashtra; if the site is in Gujarat, the contractor needs to check whether registration in Gujarat is required and the client's head-office address does not change the answer. This is why the invoice must carry the site address separately from the billing address.

GST TDS on Government and PSU contracts

When the recipient is a Government department, local authority or notified PSU and the contract value exceeds ₹2.5 lakh, section 51 of the CGST Act requires the client to deduct 2% GST TDS (1% CGST plus 1% SGST, or 2% IGST) from the payment. Your invoice still shows the full GST; the deduction appears in the payment advice and in your electronic cash ledger once the client files GSTR-7. Track it per RA bill so you can reconcile Form GSTR-7A certificates.

Retention money and the time of supply

Retention is part of the consideration for work already done, so GST is due on the full value of the RA bill on the date the bill is issued, not when the retention is finally released. Many contractors make the mistake of invoicing only the net amount received. Show the gross work value as taxable, compute GST on it, and list retention and advance recovery as deductions after the invoice total.

E-invoicing and e-way bills on site material

If your aggregate turnover in any year since 2017-18 crossed ₹5 crore, every B2B RA bill must be reported on the Invoice Registration Portal and carry an IRN and QR code. Separately, when you move your own steel, shuttering plates or machinery from the yard to the site, the movement is not a sale but still needs a delivery challan, and an e-way bill when the consignment value exceeds ₹50,000.

Common billing mistakes

Splitting one composite contract into a material invoice at 5% or 18% and a labour invoice, which the department can recombine and tax as a single works contract.
Charging GST only on the net cheque amount after retention and mobilisation advance recovery, under-paying tax on every RA bill.
Using the client's head-office state for IGST or CGST/SGST instead of the state where the site is located.
Not quoting the cumulative quantity, so the final bill cannot be reconciled with earlier RA bills and the client withholds payment.
Forgetting that GST TDS deducted by a Government client must be accepted in the GST portal before the cash ledger credit can be used.

Civil contractor GST invoice: FAQ

What SAC code should a civil contractor use on the invoice?

Use heading 9954, construction services, with the sub-code that matches the work, for example 995411 or 995414 for buildings, 995421 to 995429 for civil engineering works, 995433 for excavation and 995456 for masonry. A composite contract can be billed under the code of the predominant work.

Is the GST rate on civil contracts still 12% for Government work?

No. From 22 September 2025, the 12% entries for earthwork-dominant contracts to Government and the related sub-contracts were moved to 18% with input tax credit. Check the specific item in Notification 11/2017 as amended by 15/2025 if your contract involves a special category.

Can a small civil contractor opt for composition?

A contractor whose aggregate turnover is up to ₹50 lakh in the previous year can opt for the composition scheme for service providers at 6% (3% CGST plus 3% SGST). Such a contractor issues a bill of supply, cannot charge GST to the client and cannot claim input tax credit.

Should the RA bill show material and labour separately?

You can show a breakdown for the client's understanding, but GST is applied once on the total contract value at the works contract rate. Do not apply different GST rates to the material and labour columns.

How is the final bill different from an RA bill?

The final bill closes the contract: it shows total executed quantity, all earlier RA bills, the release of retention where applicable and any variation items. It is still a tax invoice and should continue your normal invoice number series.

Sources: CBIC — Notification 15/2025-Central Tax (Rate) (services rates) · PIB — FAQs on decisions of the 56th GST Council · PIB — Recommendations of the 56th GST Council (rate synopsis) · CBIC — Scheme of Classification of Services (SAC annexure)

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