Construction and property
An HVAC contractor's GST invoice should list each unit's make, model, tonnage and serial number, the ducting area, copper piping length, insulation, drain lines and controls, and separate supply of equipment from installation where they are separate contracts. Heating, ventilation and air-conditioning installation falls under SAC 995463. Air-conditioning machines under HSN 8415 moved from 28% to 18% in September 2025, so equipment, installation and ducting are now all at 18%.
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Or create these invoices in software, free| Description | HSN/SAC | Qty | Rate (₹) | Taxable (₹) | GST |
|---|---|---|---|---|---|
| Ductable split AC 8.5 TR, inverter (equipment supply) | 8415 | 2 NOS | 2,65,000.00 | 5,30,000.00 | 18% |
| GI ducting 24 gauge with 25 mm nitrile insulation, fabricated and installed | 995463 | 160 SQM | 1,650.00 | 2,64,000.00 | 18% |
| Copper refrigerant piping with insulation, installed | 995463 | 70 RMT | 1,450.00 | 1,01,500.00 | 18% |
| Inline ventilation fan with hood | 8414 | 4 NOS | 9,200.00 | 36,800.00 | 18% |
| Annual maintenance contract, 4 quarterly services | 998719 | 1 OTH | 36,000.00 | 36,000.00 | 18% |
| Taxable value | ₹9,68,300.00 | ||||
| GST (CGST + SGST, or IGST if inter-state) | ₹1,74,294.00 | ||||
| Invoice total | ₹11,42,594.00 | ||||
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) · GST Rates and Slabs in India: The Current Structure Explained · E-Way Bill Limit and Rules: When You Need One and When You Don't · Advance Payment Under GST: Receipt Vouchers, Tax and Adjustment
Before 22 September 2025, air-conditioning machines under HSN 8415 were taxed at 28%. Notification 9/2025-Central Tax (Rate) now lists them in Schedule II at 18%, together with fans, ventilating hoods and compressors under 8414. HVAC contractors who quoted at 28% for supplies invoiced after that date should revise the bill; the rate applicable is the one in force at the time of supply, determined under section 14 rules where rate changes occur.
Where a single contract covers supply of AC units and their installation with ducting and piping, the supply is a works contract if the system becomes part of the building, as with central or ducted systems, taxed at 18% under SAC 995463. For a split AC sold and installed in a home, the dominant element is the goods and installation is ancillary, making it a composite supply with the AC as principal supply. With equipment and installation both at 18%, the tax is the same, but the codes reported in GSTR-1 should reflect the actual nature.
After the warranty period, AMCs are billed under maintenance and repair services, typically 998719, maintenance and repair of other machinery and equipment. If the AMC is paid annually in advance, GST is due when the payment is received or the invoice is issued, whichever is earlier, for the whole year. A comprehensive AMC that includes spare parts remains a service at 18%.
Ductable units and chillers are high value. Movement from your store to the site for a works contract requires an e-way bill when value exceeds ₹50,000. For direct dispatch from the manufacturer to the client's site on your order, the bill-to-ship-to arrangement must be reflected correctly in the e-way bill.
HVAC installation in a building is a service directly related to immovable property, so section 12(3) places the supply where the building is. For a Delhi contractor installing ducting in a Gurugram office, the place of supply is Haryana, not Delhi. Contractors with continuing site work in another state usually take registration there and charge the CGST and SGST of that state, and the site address on the invoice is the evidence for this. Equipment sold and shipped across states without installation follows the goods rules, where IGST applies on inter-state movement.
Heating, ventilation and air-conditioning equipment installation services fall under SAC 995463. Repairs to such installations come under 995469.
Air-conditioning machines under HSN 8415 are taxed at 18% from 22 September 2025, down from 28%.
Credit on movable AC units used for business is generally available. Central HVAC systems built into a building may be treated as part of the immovable property, where credit is blocked unless they qualify as plant and machinery.
Maintenance and repair of machinery falls under group 99871; 998719 covers other machinery and equipment. AMC is taxed at 18%.
Yes, if the consignment value exceeds ₹50,000, even if the units are moving to your own project site.
If the manufacturer supplies the compressor free under warranty and you fit it, no GST is charged to the client for the part. If you charge labour, issue a tax invoice at 18% for the labour only. Out-of-warranty compressors and refrigerant top-ups are billed with GST at the applicable rates.
Sources: CBIC — Notification 9/2025-Central Tax (Rate), 17 Sep 2025 · ICAI IDTC — Notification 9/2025-Integrated Tax (Rate) as corrected 18 Sep 2025 · PIB — Recommendations of the 56th GST Council (rate synopsis) · CBIC — Scheme of Classification of Services (SAC annexure)
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