HSN Summary in builder case

Yes — HSN/SAC summary is required even if in March the builder has only received advance and no sale invoice for flat is issued, provided the advance is for a taxable service supply such as an under-construction flat / construction service. GST Portal FAQs say tax is payable on advances received for supply of services and such advances must be reported in GSTR-1 in the month of receipt. The GST Portal user guide also describes Table 12 as the summary of all outward supplies HSN-wise/SAC-wise.

For builders, the HSN summary in GSTR-1 should use SAC code 9954 for construction services.

The applicable rate depends on the project type:
- Affordable housing (carpet area up to 60 sq m in metro, up to 90 sq m elsewhere, value up to Rs 45 lakh): 1% GST (no ITC) on demand amount
- Under-construction residential (other than affordable): 5% GST (no ITC)
- Commercial property: 12% GST (with ITC, under works contract)

For advance receipts, report the advance amount under SAC 9954 in Table 11 of GSTR-1. The HSN summary in Table 12 should reflect the same SAC with total taxable value and tax breakup.

One common mistake: builders sometimes show advances under SAC 9997 or 9987 instead of 9954. This leads to GSTR-2A mismatches for the buyer.

This [GST on works contract and construction services guide](https://taxgarden.in/blog/gst-on-works-contract-construction-services-india-2026) has a detailed rate chart and reporting procedure for under-construction properties.