Construction and property
A construction project management consultant's GST invoice should identify the project, the PMC agreement, the billing month or milestone, and services delivered such as planning, cost control, quantity surveying, contractor bill certification and quality audits. Project management services for construction projects fall under SAC 998339, taxed at 18%. The invoice should list deployed staff or man-months, any reimbursements, and the link between the fee and project progress, especially where fees are a percentage of construction cost.
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Or create these invoices in software, free| Description | HSN/SAC | Qty | Rate (₹) | Taxable (₹) | GST |
|---|---|---|---|---|---|
| Project management consultancy for commercial building, monthly fee for October | 998339 | 1 OTH | 4,50,000.00 | 4,50,000.00 | 18% |
| Quantity surveying and certification of contractor RA bills (3 bills) | 998339 | 3 NOS | 25,000.00 | 75,000.00 | 18% |
| Additional site engineer deployed for night concreting, man-month | 998339 | 1 OTH | 95,000.00 | 95,000.00 | 18% |
| Reimbursement of site travel and accommodation (incurred in own name) | 998339 | 1 OTH | 38,000.00 | 38,000.00 | 18% |
| Taxable value | ₹6,58,000.00 | ||||
| GST (CGST + SGST, or IGST if inter-state) | ₹1,18,440.00 | ||||
| Invoice total | ₹7,76,440.00 | ||||
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: Billing for Service Businesses: Models, GST and Best Practice · E-Invoice Applicability Limit: Who Crosses the ₹5 Crore Line · TDS on Invoices: How Section 393 Changes Billing from April 2026
The SAC annexure lists project management services for construction projects as 998339, within group 99833 engineering services. They are taxed at 18%. Quantity surveying, cost consultancy and contract administration performed as part of the PMC scope are usually billed under the same code; standalone cost consultancy may fit elsewhere, but consistency matters more than precision across similar bills.
Section 12(3) of the IGST Act covers services directly in relation to immovable property, including services by engineers and coordination of construction work. A PMC managing a hospital project in another state therefore supplies service in that state. Firms with long-running projects in several states often register in each, issuing invoices from the local GSTIN with that state's CGST and SGST.
Travel and accommodation booked by the PMC in its own name and recovered from the client are part of the value of the service and attract 18%. Only costs meeting all Rule 33 pure-agent conditions, such as statutory fees paid in the client's name, can be excluded. Many PMCs mistakenly show all reimbursements as non-taxable.
PMC services for Government projects attract 18% and are subject to 2% GST TDS for contracts above ₹2.5 lakh. Government clients often require detailed staff deployment records; your invoice should match them to avoid deductions.
PMC firms often exceed the ₹5 crore aggregate turnover limit for e-invoicing. Every B2B invoice must then be reported on the Invoice Registration Portal and carry an IRN and QR code. Invoices without IRN are not valid for the client's credit and may be returned.
Some PMC agreements pay a percentage of the final construction cost. Monthly invoices are then raised on the estimated cost, with a final adjustment once the contractor's final bill is certified. If the cost increases, the additional fee is billed by a debit note or supplementary invoice referencing the earlier invoices; if it decreases, a credit note reduces your output tax, subject to section 34 time limits. Keep a fee reconciliation schedule so the last invoice shows how the cumulative fee was computed against the certified cost.
Clients sometimes pay a mobilisation advance when the PMC deploys its site team. GST on an advance for services is payable when received, using a receipt voucher, and the advance is adjusted in later monthly invoices. If the project is suspended and the advance is partly refunded, issue a refund voucher to adjust the tax.
Project management services for construction projects are coded 998339 and taxed at 18%.
Costs incurred in your own name and recovered from the client are part of your taxable value at 18%. Only genuine pure-agent costs can be excluded.
For construction of immovable property on own account, section 17(5)(d) blocks credit on services used in construction. Credit may be available for other uses.
Yes, Government and notified bodies deduct 2% GST TDS for contracts above ₹2.5 lakh.
It is good practice. A deployment schedule supports fees, especially for man-month contracts and Government clients.
Invoice the agreed percentage on the certified or estimated cost for the period, show the cumulative fee billed to date, and adjust the difference through a debit or credit note when the final construction cost is certified.
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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