Construction and property
A renovation contractor's GST invoice usually spans several trades: dismantling, civil repairs, plumbing, electrical, tiling, carpentry and painting. It should list each trade's scope with quantities, separate demolition and debris removal, and name the flat or office address and the approval from the society or landlord. Renovation of buildings falls under SAC 995419 for buildings covered under the 99541 group, and a material-inclusive renovation is a works contract at 18%. Loose items sold separately carry their own HSN.
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Or create these invoices in software, free| Description | HSN/SAC | Qty | Rate (₹) | Taxable (₹) | GST |
|---|---|---|---|---|---|
| Dismantling of existing bathroom tiles, fixtures and plaster incl. debris removal | 995419 | 2 OTH | 12,000.00 | 24,000.00 | 18% |
| Bathroom renovation: waterproofing, plumbing, tiling and fixtures installation (composite) | 995419 | 2 NOS | 1,45,000.00 | 2,90,000.00 | 18% |
| Kitchen platform rebuilding with granite top and dado tiles (composite) | 995419 | 1 OTH | 95,000.00 | 95,000.00 | 18% |
| Repainting of 2BHK flat with putty and emulsion (composite) | 995473 | 420 SQM | 160.00 | 67,200.00 | 18% |
| Variation 1: additional electrical points in living room | 995461 | 6 NOS | 1,400.00 | 8,400.00 | 18% |
| Taxable value | ₹4,84,600.00 | ||||
| GST (CGST + SGST, or IGST if inter-state) | ₹87,228.00 | ||||
| Invoice total | ₹5,71,828.00 | ||||
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) · Billing for Service Businesses: Models, GST and Best Practice · Credit Note Under GST: When, How and By When to Issue It
Section 2(119) defines a works contract to include repair, maintenance, renovation, addition, alteration or commissioning of immovable property where transfer of property in goods is involved. A renovation where the contractor supplies material is therefore a works contract taxed at 18%. The SAC annexure provides 995419 for services involving repair, alterations, additions, replacements, renovation, maintenance or remodelling of buildings.
A renovation contractor coordinating several trades can bill the entire composite renovation under 995419. Some contractors prefer trade-wise SAC codes like 995473 for painting or 995474 for tiling where trades are priced separately. Both approaches are acceptable if consistent; all are at 18%. Avoid a single line called 'renovation work' without scope, which leaves no evidence of what was done.
Homeowners sometimes expect lower rates because they are renovating a residence. The concessional rates for residential apartments apply to promoters' sales of apartments, not to renovation contracts. Pure labour exemption for a single residential unit covers original works, not renovation, so labour-only renovation of a flat is taxable when the contractor is registered.
Businesses renovating offices may want to claim credit. Section 17(5)(c) and (d) block credit on works contracts and goods used for construction, which includes reconstruction, renovation, additions or alterations capitalised to the immovable property. Repairs charged to profit and loss rather than capitalised are treated differently; the client's accountant decides, but a clear scope on your invoice helps them.
When the owner buys tiles or fixtures directly, exclude them from your value. When you buy in your own name on the owner's behalf and recover at cost, the cost is part of your value unless all pure-agent conditions are met. Keep supplier bills in the owner's name for genuine pure-agent purchases.
Renovation clients usually pay a booking advance and then instalments as each trade finishes. The advance is consideration for a service and attracts GST when received, through a receipt voucher that you adjust in the next stage invoice. If the owner cancels part of the scope after paying, issue a refund voucher for the unused advance and a credit note if an invoice has already been raised, quoting the original invoice so the tax adjustment is clear in your returns.
Renovation, repair and remodelling of buildings falls under 995419. Trade-specific codes like 995473 for painting can be used where trades are billed separately.
Renovation with materials is a works contract taxed at 18%. Labour-only renovation by a registered contractor is also taxed at 18%.
No. The exemption for pure labour contracts covers original works for a single residential unit, not renovation of an existing flat.
Credit is blocked for renovation capitalised to immovable property. Revenue repairs may be treated differently; the client should check with their adviser.
Yes. List each variation as a numbered line with the owner's approval reference so extra charges are traceable.
Yes. Breaking and carting away old tiles, plaster and fixtures is real work with transport and disposal cost. A separate line at 18% makes it visible and stops it being treated as a free extra at the final bill.
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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