GST invoice format for a road construction contractor
A road contractor's GST invoice is a running account bill measured by chainage: length and width of each layer (GSB, WMM, DBM, BC), tonnage of bitumen, and items such as kerbs, culverts and road marking. Road construction is a works contract under SAC 995421, general construction services of highways, streets, roads, railways and airfield runways, at 18% for most clients. Materials sold separately carry their own HSN: crushed stone aggregates under 2517 at 5% and bitumen under 2713 at 18%.
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Granular sub-base Grade I, laid and compacted (Ch 2+400 to 3+150)
995421
1350 CUM
1,750.00
23,62,500.00
18%
Dense bituminous macadam 60 mm with VG-30 bitumen, laid and compacted
995421
420 CUM
9,400.00
39,48,000.00
18%
Thermoplastic road marking 2.5 mm thick
995421
680 SQM
540.00
3,67,200.00
18%
Crushed stone aggregate 20 mm (supplied to client's plant)
2517
200 TON
850.00
1,70,000.00
5%
Paving bitumen VG-30 (sold separately)
2713
8 TON
48,000.00
3,84,000.00
18%
Taxable value
₹72,31,700.00
GST (CGST + SGST, or IGST if inter-state)
₹12,79,606.00
Invoice total
₹85,11,306.00
Sample prices are illustrative. Check the GST rate for your exact item or service before billing.
Extra fields a road construction contractor invoice needs
Chainage from and to
Roads are measured by chainage. Printing 'Ch 2+400 to 3+150' for each layer lets the engineer-in-charge trace quantities to the exact stretch of road.
Layer and thickness
GSB, WMM, DBM and BC are laid in specified thicknesses. A line per layer with compacted thickness supports the volume or tonnage billed.
Bitumen grade and quantity
Bitumen consumption is closely watched and sometimes reconciled with refinery invoices. Recording grade (VG-30, VG-40, CRMB) and tonnes used keeps the reconciliation clean.
Price variation clause
Long road contracts often include price variation for bitumen, steel and fuel. Showing the PV amount separately, with the indices used, keeps it distinct from the base bill.
Agreement and work order number
Government road contracts are tracked against the agreement number. Quoting it ensures the bill reaches the right division and budget head.
Quality test references
Field density and core test results are prerequisites for payment. Referring to test report numbers on the RA bill reduces queries from the quality control wing.
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)
GST rules that matter for a road construction contractor
Roads as works contract
Constructing a road involves laying materials like aggregates and bitumen that become part of immovable property, so a road contract is a works contract under section 2(119). It falls under SAC 995421, general construction services of highways, streets, roads, railways and airfield runways, bridges and tunnels. After the 22 September 2025 changes, the residual works contract rate of 18% applies to most road contracts, including the earthwork-heavy Government contracts that had been at 12%.
Roads for general public use and exemptions
Services by way of construction of a road or bridge for use by the general public are historically covered under a specific exemption entry, while tolls and roads with restricted use are taxable. Contractors must read the current exemption list carefully: whether a contract is exempt depends on the nature of the road and the recipient. When an exemption applies, issue a bill of supply instead of a tax invoice and reverse credit attributable to exempt supplies under Rule 42.
Aggregates and bitumen rates
Notification 9/2025 lists pebbles, gravel, broken or crushed stone of a kind commonly used for concrete aggregates and road metalling under 2517 in Schedule I at 5%, while petroleum bitumen under 2713 and bituminous mixtures under 2715 are in Schedule II at 18%. Contractors who also run crushers and sell aggregates to others must keep that goods business separate in the invoice series.
GST TDS and the RA bill
Public works departments, municipal corporations and national highway authorities deduct 2% GST TDS on contracts above ₹2.5 lakh. Each RA bill should show full GST; the TDS appears in the department's payment and GSTR-7. Accept the TDS credit on the portal promptly, since it can be used to pay GST liability only after acceptance.
Price variation and supplementary invoices
Price variation on bitumen and fuel is often paid months after the original RA bill. It is additional consideration for the same supply and requires a supplementary tax invoice or debit note under section 34, referencing the original bill. Debit notes for price variation must be issued within the timelines and reported in GSTR-1.
Common billing mistakes
✕Assuming every road contract is exempt because roads are public, without checking the specific exemption conditions.
✕Billing aggregates sold to a third party at 18% instead of the 5% rate for crushed stone under 2517.
✕Adding price variation to the next RA bill without a debit note referencing the original bill.
✕Leaving out chainage, which makes RA bills impossible to reconcile with measurement books.
✕Quoting VG-30 in the bill while the refinery invoices show VG-40 or CRMB, triggering a recovery during the department's bitumen reconciliation.
Road construction contractor GST invoice: FAQ
What SAC code is used for road construction?
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Road construction uses SAC 995421, covering highways, streets, roads, railways, airfield runways, bridges and tunnels.
What GST rate applies to road contracts?
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Most road works contracts are taxed at 18%. Some roads for general public use may be covered by an exemption; check the current exemption notification for your contract.
What is the GST on aggregates and bitumen?
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Crushed stone aggregates under HSN 2517 are taxed at 5%, and petroleum bitumen under 2713 at 18%.
How is price variation billed under GST?
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Price variation is additional consideration for the original supply. Issue a debit note or supplementary invoice referencing the original RA bill, and charge GST at the same rate.
Is GST TDS deducted on road contracts?
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Yes, Government and notified bodies deduct 2% GST TDS on contracts above ₹2.5 lakh and issue a certificate through GSTR-7A.
Should chainage appear on every RA bill line?
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Yes. Measurement books, test reports and site inspections are all organised by chainage. Showing from-and-to chainage for each layer on the invoice lets the division office reconcile your bill against the measurement book without sending it back for clarification.