Construction and property
A demolition contractor's GST invoice should describe the structure being demolished (floors, built-up area, RCC or load-bearing), method (manual, mechanical, controlled), debris removal and disposal site, and any scrap or salvage the contractor keeps. Demolition services use SAC 995431 at 18%. When the contractor takes steel, wood or fixtures in part payment, that scrap is a separate supply by the client, and the barter must be shown at value rather than netted silently.
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Or create these invoices in software, free| Description | HSN/SAC | Qty | Rate (₹) | Taxable (₹) | GST |
|---|---|---|---|---|---|
| Demolition of G+2 RCC framed building, 650 sq m built-up, mechanical method | 995431 | 650 SQM | 420.00 | 2,73,000.00 | 18% |
| Loading, transport and disposal of debris at authorised C&D waste facility | 995431 | 480 CUM | 380.00 | 1,82,400.00 | 18% |
| Barricading with GI sheets and dust screen during demolition | 995431 | 90 RMT | 450.00 | 40,500.00 | 18% |
| Site clearing and levelling after demolition | 995435 | 800 SQM | 40.00 | 32,000.00 | 18% |
| Taxable value | ₹5,27,900.00 | ||||
| GST (CGST + SGST, or IGST if inter-state) | ₹95,022.00 | ||||
| Invoice total | ₹6,22,922.00 | ||||
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) · E-Way Bill Limit and Rules: When You Need One and When You Don't · Reverse Charge Mechanism Under GST: When the Buyer Pays the Tax
The SAC annexure lists demolition services under group 99543, site preparation services, as 995431. Other site preparation such as clearing and levelling falls under 995435. Both are taxed at 18%. Because demolition relates to immovable property, the place of supply is where the building stands, even if the owner is based in another state.
A demolition contract often lets the contractor keep the steel and wood recovered, with the contract price reduced accordingly. In GST terms there are two supplies: your demolition service to the owner and the owner's supply of scrap to you. Section 15 values your service at the full consideration, which includes the value of scrap received. If the owner is registered, they must also invoice the scrap to you. Netting the two into a single low price understates both.
Ferrous waste and scrap under HSN 7204 is in Schedule II of Notification 9/2025 at 18%. When an unregistered owner supplies scrap to you, normal reverse charge on general goods from unregistered persons does not apply except for specified categories, so you simply record the barter value as consideration for your service. If you later sell the scrap to a dealer, that sale is your own taxable supply of goods, and an e-way bill is needed above ₹50,000.
Construction and demolition waste rules framed under the Environment (Protection) Act require large generators to segregate and dispose of debris at authorised sites. Fees paid to a municipal disposal facility on the owner's behalf can be recovered as pure-agent costs if paid in the owner's name. If paid in your name, add them to your taxable value.
When demolition is part of a larger renovation or reconstruction contract by the same contractor, it is usually one composite works contract. Bill it under the main construction code with the rest of the work, rather than as a separate demolition invoice, unless the client has a separate contract for it.
Owners often pay a mobilisation advance before the excavator and breaker arrive, and contractors sometimes collect a refundable security deposit against damage to neighbouring property. The advance is consideration for your service and attracts GST when received, through a receipt voucher. A genuine security deposit that is refundable and not adjusted against the price is not consideration, but once you forfeit or adjust it against the bill, it becomes part of the taxable value on that date.
Demolition services are coded 995431 under site preparation services. Site clearing and levelling can be billed under 995435.
Demolition services are taxed at 18%.
Show the gross demolition charge, then the agreed value of scrap received as part consideration. GST is charged on the gross value, not the net cash amount.
Debris with no value is not a supply of goods. Scrap sold or transferred with value above ₹50,000 needs an e-way bill.
Demolition relates to immovable property, so the place of supply is where the building is located.
Sources: CBIC — Scheme of Classification of Services (SAC annexure) · CBIC — Notification 15/2025-Central Tax (Rate) (services rates) · ICAI IDTC — Notification 9/2025-Integrated Tax (Rate) as corrected 18 Sep 2025
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