{"id":11151,"date":"2026-10-21T05:25:21","date_gmt":"2026-10-21T05:25:21","guid":{"rendered":"https:\/\/mybillbook.in\/blog\/?page_id=11151"},"modified":"2026-10-21T05:27:43","modified_gmt":"2026-10-21T05:27:43","slug":"installation-charges","status":"publish","type":"page","link":"https:\/\/mybillbook.in\/blog\/sac-code\/installation-charges\/","title":{"rendered":"Installation Charges SAC Code &amp; GST Rate in India"},"content":{"rendered":"<p>\n\n\n<p class=\"wp-block-paragraph\">The <strong>SAC code for installation charges is 9987<\/strong>, with <strong>99873<\/strong> covering installation services other than construction. These services generally attract <strong>18% GST<\/strong> in India. The exact six-digit SAC depends on the equipment being installed, such as computers, industrial machinery, communication devices or electrical equipment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Installation charges use a SAC (Services Accounting Code), not an HSN code, because installation is a service.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Is the SAC Code for Installation Charges?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Installation services that do not form part of construction work are classified under <strong>SAC group 99873<\/strong>, within heading 9987.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This includes installing and setting up machinery, computers, electronic equipment and other qualifying goods.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><th>Particular<\/th><th>Details<\/th><\/tr><tr><td>Service<\/td><td>Installation charges<\/td><\/tr><tr><td>SAC heading<\/td><td><strong>9987<\/strong><\/td><\/tr><tr><td>SAC group<\/td><td><strong>99873<\/strong><\/td><\/tr><tr><td>Category<\/td><td>Installation services other than construction<\/td><\/tr><tr><td>General GST rate<\/td><td><strong>18%<\/strong><\/td><\/tr><tr><td>CGST + SGST<\/td><td>9% + 9%<\/td><\/tr><tr><td>IGST<\/td><td>18%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The precise SAC code depends on the equipment or goods being installed.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">SAC Codes for Different Types of Installation Services<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The official GST classification provides separate codes for different installation services.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><th>Installation service<\/th><th>SAC code<\/th><th>General GST rate<\/th><\/tr><tr><td>Fabricated metal products, excluding machinery and equipment<\/td><td><strong>998731<\/strong><\/td><td>18%<\/td><\/tr><tr><td>Industrial and manufacturing machinery and equipment<\/td><td><strong>998732<\/strong><\/td><td>18%<\/td><\/tr><tr><td>Office machinery, accounting equipment and computers<\/td><td><strong>998733<\/strong><\/td><td>18%<\/td><\/tr><tr><td>Radio, television and communication equipment<\/td><td><strong>998734<\/strong><\/td><td>18%<\/td><\/tr><tr><td>Medical machinery, precision and optical instruments<\/td><td><strong>998735<\/strong><\/td><td>18%<\/td><\/tr><tr><td>Other electrical machinery and apparatus<\/td><td><strong>998736<\/strong><\/td><td>18%<\/td><\/tr><tr><td>Other goods not classified elsewhere<\/td><td><strong>998739<\/strong><\/td><td>18%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">These codes apply to qualifying standalone installation services outside construction. The actual service contract must be reviewed before selecting a code.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">GST Rate on Installation Charges in India<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Standalone installation services classified under SAC 9987 generally attract <strong>18% GST<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For an intra-state transaction, GST is divided into 9% CGST and 9% SGST.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For an inter-state transaction, 18% IGST generally applies, subject to the relevant place-of-supply rules.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, installation charges may receive different GST treatment when they form part of a composite supply of goods or a construction contract.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">GST on Machinery Installation Charges<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Installation of industrial machinery and equipment generally falls under <strong>SAC 998732<\/strong> when supplied as a standalone installation service outside construction.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, a technician installing industrial equipment under a separate service contract may use this classification.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The general GST rate is 18%.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">GST on Computer Installation Charges<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Installation of computers, office machinery and accounting equipment generally falls under <strong>SAC 998733<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This can include qualifying installation and setup services for computer equipment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The general GST rate is 18%.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">GST on Electrical Equipment Installation Charges<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Installation of electrical machinery and apparatus not covered by a more specific installation category may fall under <strong>SAC 998736<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, electrical installation work forming part of a building or construction project may fall under SAC 9954 instead.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">GST Calculation Example for Installation Charges<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Suppose a service provider charges \u20b915,000 for installing industrial equipment under a standalone service contract.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><th>Particular<\/th><th class=\"has-text-align-right\" data-align=\"right\">Amount<\/th><\/tr><tr><td>Installation charges<\/td><td class=\"has-text-align-right\" data-align=\"right\">\u20b915,000<\/td><\/tr><tr><td>GST at 18%<\/td><td class=\"has-text-align-right\" data-align=\"right\">\u20b92,700<\/td><\/tr><tr><td>Total invoice value<\/td><td class=\"has-text-align-right\" data-align=\"right\"><strong>\u20b917,700<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">For an intra-state transaction, the GST consists of \u20b91,350 CGST and \u20b91,350 SGST.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For an inter-state transaction, \u20b92,700 IGST generally applies, subject to place-of-supply rules.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This example assumes that the installation is an independent taxable service under SAC 9987.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Are Installation Charges Taxed Separately from Goods?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Installation charges are not always treated as a separate service for GST purposes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When a business sells goods and also installs them, the tax treatment depends on the contract and whether the transaction constitutes a composite supply.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, if equipment is sold with installation as an ancillary part of a single composite supply, the GST treatment may follow the principal supply.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, if a customer separately engages a service provider for installation, the installation service may be classified independently under the relevant SAC.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Businesses should evaluate the nature of the transaction rather than automatically applying SAC 9987 to every installation charge.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Difference Between Installation Services and Construction Services<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Not all installation activities fall under SAC 9987.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Installation work that forms part of construction may be classified under <strong>SAC 9954<\/strong>.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><th>Type of service<\/th><th>Relevant SAC<\/th><\/tr><tr><td>Standalone machinery installation outside construction<\/td><td><strong>998732<\/strong><\/td><\/tr><tr><td>Standalone computer installation<\/td><td><strong>998733<\/strong><\/td><\/tr><tr><td>Standalone communication equipment installation<\/td><td><strong>998734<\/strong><\/td><\/tr><tr><td>Electrical installation work forming part of construction<\/td><td><strong>995461<\/strong><\/td><\/tr><tr><td>Plumbing installation forming part of construction<\/td><td><strong>995462<\/strong><\/td><\/tr><tr><td>HVAC installation forming part of construction<\/td><td><strong>995463<\/strong><\/td><\/tr><tr><td>Lift and escalator installation forming part of construction<\/td><td><strong>995466<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The distinction matters because construction-related installation may be subject to different GST provisions depending on the contract.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How to Identify the Correct SAC Code for Installation Charges<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Businesses should first identify the equipment or system being installed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Next, determine whether the installation is an independent service, part of a goods supply or part of construction work.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For standalone installation services outside construction, select the relevant six-digit code under SAC group 99873.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For construction-related installation, check the appropriate classification under SAC 9954.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Finally, verify the applicable GST rate and place-of-supply treatment before preparing the invoice.<\/p>\n\n\n\t\t<div class=\"wp-faq-schema-wrap\">\n\t\t\t\t\t\t\t<h2>Frequently Asked Questions<\/h2>\n\t\t\t\t\t\t<div class=\"wp-faq-schema-items\">\n\t\t\t\t\t\t\t\t\t<h3>What is the SAC code for installation charges?<\/h3>\n\t\t\t\t\t<div class=\"\">\n\t\t\t\t\t\t<p>The SAC heading for installation charges is 9987, with group 99873 covering installation services other than construction. The exact six-digit code depends on the equipment installed.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<h3>What is the GST rate on installation charges?<\/h3>\n\t\t\t\t\t<div class=\"\">\n\t\t\t\t\t\t<p>Standalone installation services under SAC 9987 generally attract 18% GST. Different treatment may apply when installation forms part of a composite supply or construction contract.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<h3>What is the SAC code for machinery installation?<\/h3>\n\t\t\t\t\t<div class=\"\">\n\t\t\t\t\t\t<p>Standalone installation of industrial and manufacturing machinery generally falls under SAC 998732.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<h3>What is the SAC code for computer installation?<\/h3>\n\t\t\t\t\t<div class=\"\">\n\t\t\t\t\t\t<p>Installation of office machinery, accounting equipment and computers generally falls under SAC 998733.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\n\n\n\n<h2 class=\"wp-block-heading\">Official Sources<\/h2>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.gstcouncil.gov.in\/sites\/default\/files\/2024-02\/scheme_of_classification_of_services_amended.pdf\">GST Council \u2013 Scheme of Classification of Services<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.gstcouncil.gov.in\/sites\/default\/files\/2024-02\/explanatory_notes_01oct19.pdf\">GST Council \u2013 Explanatory Notes to the Scheme of Classification of Services<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/cbic-gst.gov.in\/hindi\/gst-goods-services-rates.html\">CBIC \u2013 GST Goods and Services Rates<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/cbic-gst.gov.in\/CGST-bill-e.html\">CBIC \u2013 Central Goods and Services Tax Act, 2017<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/services.gst.gov.in\/services\/searchhsnsac\">GST Portal \u2013 Search HSN\/SAC Code<\/a><\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Last Reviewed: 21 October 2026<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The SAC code for installation charges is 9987, with 99873 covering installation services other than construction. These services generally attract [&hellip;]<\/p>\n","protected":false},"author":20,"featured_media":0,"parent":11106,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"site-sidebar-layout":"no-sidebar","site-content-layout":"plain-container","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"disabled","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"class_list":["post-11151","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Installation Charges SAC Code &amp; GST Rate in India<\/title>\n<meta name=\"description\" content=\"Find installation charges SAC code 9987 and 18% GST rate in India. 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