Construction and property

GST invoice format for a house construction contractor

A contractor who builds a bungalow or row house on the owner's own plot bills by construction stage: plinth, slab, brickwork, plaster, finishing. The invoice should name the plot or survey number, the agreed per-square-foot or lump-sum rate, the stage completed and the amount due for it, under SAC 995411. If the contract includes materials it is a works contract taxed at 18%; a labour-only contract for a single residential unit is exempt and needs a bill of supply instead.

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Sample house construction contractor invoice

Description	HSN/SAC	Qty	Rate (₹)	Taxable (₹)	GST
Stage 2: plinth beam and plinth filling complete (12% of contract, material and labour)	995411	1 OTH	2,64,000.00	2,64,000.00	18%
Stage 3: ground floor roof slab cast incl. steel, cement and shuttering (18% of contract)	995411	1 OTH	3,96,000.00	3,96,000.00	18%
Extra item: RCC staircase to terrace as per approved drawing	995411	1 OTH	85,000.00	85,000.00	18%
Extra item: compound wall 1.5 m high in brick masonry	995456	40 RMT	3,200.00	1,28,000.00	18%
Taxable value				₹8,73,000.00
GST (CGST + SGST, or IGST if inter-state)				₹1,57,140.00
Invoice total				₹10,30,140.00

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

Extra fields a house construction contractor invoice needs

Plot or survey number and owner name: Individual house contracts are tied to one plot. Printing the survey number, CTS or gat number with the owner's name matches the invoice to the building permission and to any home loan the owner's bank is disbursing against your stage bills.
Construction stage and percentage: Owners and their lenders release money stage by stage. Writing 'Stage 3: first slab cast, 35% of contract' lets the bank's technical officer and the owner confirm the work before paying, and keeps each bill distinct.
Built-up area and agreed rate: Many house contracts are priced per square foot of built-up area. Showing the area and the agreed rate per sq ft explains how the lump-sum stage amount was derived and avoids arguments when the drawing changes.
Material-inclusive or labour-only flag: Whether you supply cement and steel decides whether the bill is taxable at 18% or exempt. A clear line stating 'material and labour (works contract)' or 'labour only' shows which treatment applies to this contract.
Owner-supplied material deduction: Owners sometimes buy steel or tiles directly. Listing owner-supplied items with a note that they are not part of your consideration shows why their value is excluded from the taxable amount of your bill.
Extra items and variations: Additional rooms, a staircase change or upgraded tiles are billed as extra items. Keeping them as separate numbered lines, with the owner's approval reference, avoids mixing them into the original stage percentage.

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 house construction contractor

Works contract versus labour-only for a single house

If you supply both material and labour to build the owner's house, the contract is a works contract under section 2(119) of the CGST Act and the stage bills are taxable at 18%. The GST exemption notification separately exempts services by way of pure labour contracts of construction, erection, commissioning or installation of original works pertaining to a single residential unit not part of a residential complex. If your contract is genuinely labour only for one independent house, you issue a bill of supply without tax. Bringing in even part of the material, such as shuttering or binding wire charged to the owner, moves the contract out of the exemption.

Why the 1% and 5% real-estate rates do not apply

Owners often ask why a flat in a builder's project carries 1% or 5% GST while their bungalow contract carries 18%. Those concessional rates apply to a promoter selling apartments in a real-estate project. A contractor building on land owned by the client is supplying a works contract service, not selling an apartment, so the general works contract rate applies. Explaining this in a covering note avoids a dispute at the first stage bill.

Stage bills, advances and time of supply

When the owner pays an advance before work starts, GST becomes payable on the advance when it is received, through a receipt voucher, and the later stage bill adjusts it. For a continuous supply of service like a house contract, the invoice should be issued on or before the date the agreed stage is completed. Raising the slab bill weeks late does not postpone the tax; the completion of the milestone does.

Composition option for small house builders

Many small house contractors work below ₹50 lakh annual turnover. They can opt for the composition scheme for service providers under section 10(2A), paying 6% of turnover and issuing a bill of supply with the words 'composition taxable person, not eligible to collect tax on supplies'. The trade-off is that input tax credit on cement, steel and tiles is lost, which usually matters less to an individual owner who cannot claim credit anyway.

Owner-supplied material and the value of supply

Under section 15, the taxable value includes anything the recipient pays on the supplier's behalf. If the owner buys steel only because you asked them to, and it reduces your price, the department can treat it as part of your consideration. When the owner independently buys and supplies material free of cost for their own reasons, keep written instructions and show it as owner-supplied on the bill.

Common billing mistakes

Billing a material-inclusive bungalow contract as exempt labour work because the house is a single residential unit.
Charging the 1% or 5% apartment rate on a contract to build on the owner's own plot.
Raising one lump-sum bill at handover instead of stage bills, which pushes GST late and breaks the owner's loan disbursement schedule.
Not issuing a receipt voucher for the booking advance taken before the plinth stage.

House construction contractor GST invoice: FAQ

What GST rate applies to building a house on my own plot?

If the contractor supplies material and labour, the contract is a works contract taxed at 18%. If the contractor provides only labour for a single independent residential unit, the service is exempt and the contractor issues a bill of supply.

Can the owner claim input tax credit on the contractor's GST?

No. Section 17(5) blocks input tax credit on works contract services for construction of immovable property, and an individual building a home is not in business anyway. The GST on a house contract is a final cost to the owner.

Does a house contractor need GST registration?

Registration is compulsory once aggregate turnover exceeds ₹20 lakh for services (₹10 lakh in special category states). A contractor doing only exempt labour-only work for single houses does not count as making taxable supplies but should still check the threshold carefully.

Which SAC code covers a bungalow contract?

Use 995411, construction services of single dwelling or multi-dwelling or multi-storied residential buildings. Compound walls and outdoor masonry can stay under the main contract code or be billed under 995456 when they are separate extra items.

How should the bank's disbursement be shown?

The invoice is addressed to the owner, not the bank. Mention the loan account or sanction reference if the bank asks, but the stage amount, GST and total are billed to the owner, who directs the bank to pay you.

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

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