Go AD-Free with CAclubindia PRO for Rs 167/Month Only. Subscribe Now!

Work Contract HSN Code

Others 340 views 1 replies

Ayush

Executive

8645 Points Joined August 2011

The HSN code is not typically used for work contracts, as work contracts are not considered goods or services. Instead, work contracts are typically classified according to the type of work being performed, the duration of the contract, and other relevant factors.

For example, a work contract for construction services might be classified under the "Construction Services" category, while a work contract for software development might be classified under the "Software Development Services" category.

Construction Services : HSN Code 9954

Software Development Services : HSN code 9983

Replies (1)

Asha Kanta Sharma

Manager - Finance & Accounts

58320 Points Joined June 2010

Hey Ayush, you’re right that work contracts cover a wide range of services and don’t have a single universal HSN code. But under GST, specific HSN/SAC codes are assigned to services for filing and tax purposes.

For work contracts, especially in sectors like construction, the generally applicable SAC (Services Accounting Code) under GST is:

Work Contract Services: 9954

This covers contracts involving both supply of goods and labor, such as construction, repair, installation, etc.

If you want HSN codes related to goods used in the contract, that’s a separate classification but for GST return filing and invoices, you’ll mostly use the SAC code.