The SAC code for solar installation falls under heading 9954 (construction services). Within it, 995461 (electrical installation services) is the 6-digit code most solar EPCs print on the installation line. Maintenance and AMC sit under heading 9987, where 998719 is in common use. The service rate is 18%.
Key takeaway
Installation: SAC heading 9954, commonly 995461. AMC and O&M: heading 9987, commonly 998719. Design and survey work: heading 9983. Serial 38 of Notification 11/2017 names these three headings for solar installation work. Do not use 998714, which is maintenance of transport machinery, or the codes 995431 (demolition) and 998313 (IT consulting) that some pages list for solar. The 6-digit code is your CA's call; the heading comes from the notification.
This page is the SAC reference. For the rate logic, including the 70:30 split on a supply-and-install contract, see GST on solar installation services. For the goods codes, see HSN codes and GST rates for solar components.
HSN versus SAC: which one applies
HSN codes classify goods. SAC codes classify services. A solar invoice can carry both: the panels, inverter, structure and cables take HSN codes, and the installation, commissioning, design and AMC lines take SAC codes. In a supply-and-install contract that the 70:30 Explanation governs, the invoice should still show the heading codes that match each part. Read the glossary entries for HSN code and SAC code if the difference is new to you.
SAC codes for solar services
| Service | SAC | GST | Note |
|---|---|---|---|
| Installation of a solar system (labour, fitting, wiring) | Heading 9954; 995461 commonly | 18% | 995461 is "electrical installation services including electrical wiring and fitting services" |
| Other installation not covered above | 995468 (other installation services n.e.c.) | 18% | Use only if your CA agrees 995461 does not fit |
| Engineering, design, site survey, DISCOM paperwork | Heading 9983 | 18% | Other professional, technical and business services |
| AMC, O&M, periodic maintenance | Heading 9987; 998719 commonly | 18% | Maintenance and repair of other machinery and equipment |
| Supply of panels, inverters and other goods | HSN, not SAC | See the HSN page | Goods are not on a SAC |
The rate is 18% in each case when the service is supplied on its own. When one supplier supplies the solar system and installs it, the 70:30 rule applies: 70% of the gross consideration is deemed goods at 5% and 30% is deemed service at 18%, an effective 8.9% since 22 September 2025. The 12% rate that older pages print for solar installation services does not exist now. The notifications are on the CBIC GST rates page, and the rate change is explained in the PIB release of the Ministry of New and Renewable Energy.
Codes that do not fit solar installation
Search results and some guides list codes for solar installation that belong elsewhere.
- 998714 is maintenance and repair of transport machinery and equipment.
- 995431 is demolition services.
- 998313 is information technology consulting.
- 9954 10, 9954 20, 9954 40 and similar do not exist as SAC sub-classifications.
- 995440 is not a valid 6-digit code; the group 99544 contains 995441 to 995449 only.
Using an unrelated code is not just untidy. A buyer's accountant may question the invoice, and the supplier then has to defend the choice.
How many digits to print
The number of digits depends on aggregate turnover: 4 up to ₹5 crore on B2B invoices and 6 above (Notification 78/2020-Central Tax, as amended). It is not a per-invoice limit. A supplier under the threshold can print the heading (9954). Above it, print the 6-digit code. Confirm the rule for your business with your CA.
The SAC Code Selection Framework
Four questions pick the code for each invoice line.
- Is it a good or a service? Goods take HSN. Services take SAC.
- Is it installing the system, designing it or maintaining it? Installation points to heading 9954, design and survey to 9983, maintenance to 9987.
- Is the line part of one supply-and-install contract? If yes, the 70:30 Explanation governs the rate, and the service leg still carries the installation SAC.
- Does a 6-digit code exist that matches the description word for word? If two fit, ask your CA to choose and use it every time.
Installation invoice: how the line items look
A supply-and-install invoice for a ₹2,80,000 contract under the 70:30 view:
| Line | HSN or SAC | Value | Rate | GST |
|---|---|---|---|---|
| Solar power generating system, goods (deemed 70%) | 8541 43 and other heading codes by component | ₹1,96,000 | 5% | ₹9,800 |
| Installation, commissioning (deemed 30%) | 995461 | ₹84,000 | 18% | ₹15,120 |
| Total | ₹2,80,000 | ₹24,920 |
That is arithmetic on the notified split, not a template your CA has signed off. How the deemed values appear on the invoice is a presentation question for your CA.
Residential, commercial and O&M billing
| Residential rooftop | Commercial rooftop | O&M and AMC | |
|---|---|---|---|
| Rate on a supply-and-install contract | 8.9% effective | 8.9% effective | Not applicable |
| Rate on installation alone | 18% | 18% | 18% |
| Customer input tax credit | No (household not registered) | Generally yes, subject to the CGST Act | Generally yes for a registered business |
| Agreement | EPC contract | EPC contract | Separate AMC agreement |
For AMC pricing, see solar AMC pricing in India.
Input tax credit and the SAC on a business customer's invoice
A registered business buyer needs the invoice to carry the correct GSTIN, description, SAC or HSN and tax amount to claim credit, subject to the conditions of the CGST Act. Section 17(5) restricts credit on some construction of immovable property, so a CA should look at how a plant fixed to a building is treated. We do not describe a reversal mechanism here. See input tax credit.
Mixed residential and commercial work
If you serve both, keep one rate logic: goods, labour only, or supply and install. The customer type changes credit, not rate. Keep AMC on its own agreement and invoice so the service line is clean.
Keeping SAC and HSN on every proposal
A catalogue with locked codes avoids most invoice errors. QuickEstimate's quotation system builds the BOM, labour and subsidy lines in one place and applies 5% GST to solar goods, and the proposal generator shows the GST breakdown on the PDF. See pricing for plans. Your CA decides the SAC and the invoice presentation.
What to do this week
- Check your invoice template for 998714, 995431 and any "9954 40" style code, and replace it.
- Print the heading on every installation line and the 6-digit code your CA chooses.
- Move AMC to a separate agreement and invoice.
Sources
- CBIC: Notifications 9/2025 (Rate), 11/2017 serial 38 and the SAC annexure, and 15/2025 (Central Tax, Rate)
- PIB, Ministry of New and Renewable Energy: GST on renewable energy devices rationalised to 5%
Frequently asked questions
What is the SAC code for solar installation services in India?
The heading is 9954 (construction services). The 6-digit code most installers print is 995461, electrical installation services, which sits in group 99546 (installation services). Serial 38 of Notification 11/2017 refers to headings 9954, 9983 and 9987. Confirm the 6-digit code with your CA.
What is the difference between a SAC code and an HSN code in solar?
HSN classifies goods such as panels, inverters and structures. SAC classifies services such as installation, design and AMC. One solar invoice can carry both.
Is GST on solar installation 18% or 5%?
Installation billed on its own is 18%. Panels and notified solar devices are 5%. When one supplier supplies and installs a solar system, 70% of the value is deemed goods at 5% and 30% is deemed service at 18%, an effective 8.9% since 22 September 2025.
Can commercial solar clients claim input tax credit on installation services?
A GST-registered business buying installation for its own taxable use can generally claim credit on the tax charged, subject to the conditions of the CGST Act, including section 17(5) on immovable property. A household cannot. Confirm with a CA.
Which SAC code should I use for solar O&M and AMC?
Heading 9987 (maintenance, repair and installation services except construction) applies, and 998719 is the code in common use for maintenance and repair of other machinery and equipment. Do not use 998714, which is for transport machinery. The rate is 18%.
What SAC code applies to a solar site survey charged separately?
Design, engineering and technical survey work falls under heading 9983, other professional, technical and business services, at 18%. Do not use 998313, which is information technology consulting.
Does a PM Surya Ghar residential installation need a GST invoice?
A registered supplier must issue a tax invoice for taxable supplies, including to households. The invoice is raised on the full contract value and the subsidy goes to the beneficiary separately. Confirm treatment with your CA and check slabs on the PM Surya Ghar portal.
What is the place of supply for solar installation services?
Services directly related to immovable property are generally supplied where the property is located, under section 12 of the IGST Act. This decides whether CGST and SGST or IGST applies. Confirm the position for your contract with a CA.
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