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Published on:

March 7, 2025

Viraaj Vashishth

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Sewage Collection GST Rate and HSN Code 9994

The country’s public health and environment safety is secured with proper disposal of urban waste. In India, the government has classified services related to sewage collection and disposal services with the HSN code 9994 waste management using the GST system. This classification streamlines tax administration and ensures uniformity in the taxation of waste management services. In India, with the implementation of the GST system, the Indian government has placed collection and disposal of sewage services within the HSN classification of 9994.

For private businesses, municipalities, and service providers involved in the process of sewage collection and treatment, the 9994 HSN code is especially important. Alongside the putty GST rate, the putty GST rate provides further information on other taxation classification that includes waste management and the construction industries.

Understanding HSN Code 9994 for Sewage Collection

Sewage and waste collection as a service falls into the category of HSN code “9994” under SAC (Services Accounting Code). The codesless above encompasses a wide range of activities covering both sewage disposal and waste treatment, such as wastewater treatment plant, septic tank cleaning, as well as bank holding trophies and pipe work. Classification under HSN 9994 facilitates providers of these services to determine the correct GST rate applicable and for compliance to the law on tax.

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GST Rate on Sewage Collection Services (HSN 9994)

The tax on goods and services (GST) rate for services listed under HSN code 9994 is eighteen percent. This charge in the area of waste management services, unlike in other areas, is not subject to specified exemptions. The following table outlines and summarizes the information related to the coding of tax 9994 and the related rates of tax.

HSN Code	Description	GST Rate
9994	Sewage and waste collection services, including treatment and disposal	18%
9994	Cleaning and emptying of septic tanks and sewer lines	18%
9994	Industrial and municipal wastewater treatment services	18%

This categorization allows companies and local authorities responsible for sewage waste disposal systems to correctly charge the GST on the services provided.

Scope of Services Under HSN 9994

HSN 9994 includes the following services:

1. Collection and Transportation of Sewage and Septic Waste: The capturing and transfer of waste materials eliminates septic waste coming from domestic, commercial, and industrial sources to a treatment facility.

2. Sewage Treatment Plant Services: The processes of treating and ensuring wastewater purity is accomplished before discharge into the ecosystem.

3. Cleaning of Soak Ways, Septic Tanks, and Sewer Drains: Upkeep of the underground drainage system to avoid clogging and flooding.

4. Industrial WasteWater Treatment: A specialized form of treatment from industrial aggressive pollutants.

5. Municipal Sewage Treatment: Treatment of sewage in the vicinity of the local authority.

SAC Code	Description of Services	Rate (%)
9994	Sewage And Waste Collection, Treatment And Disposal And Other Environmental Protection Services	12/18
999411	Sewerage And Sewage Treatment Services	12/18
999412	Septic Tank Emptying And Cleaning Services	12/18
999421	Collection Services Of Hazardous Waste	12/18
999422	Collection Services Of Non-Hazardous Recyclable Materials	12/18
999423	General Waste Collection Services, Residential	12/18
999424	General Waste Collection Services, Other N.E.C.	12/18
999431	Waste Preparation, Consolidation And Storage Services	12/18
999432	Hazardous Waste Treatment And Disposal Services	12/18
999433	Non-Hazardous Waste Treatment And Disposal Services	12/18
999441	Site Remediation And Clean-Up Services	12/18
999442	Containment, Control And Monitoring Services And Other Site Remediation Services	12/18
999443	Building Remediation Services	12/18
999449	Other Remediation Services N.E.C.	12/18
999451	Sweeping And Snow Removal Services	12/18
999459	Other Sanitation Services N.E.C.	12/18
999490	Other Environmental Protection Services N.E.C.	12/18

By normative focusing on these areas designated by HSN code 9994, the government will ensure that there is no discrimination in taxation in regards to the waste management industry.

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Taxation Implications and Exemptions

The GST of 18 provides services under HSN 9994 exemption from some specified services. In regard to public health improvement activities of specific government led sewage treatment projects and sanitation essential services are provided for in the GST Act for relief. Some key considerations include the following:

1. Certain government authority bodies that provide public sewage disposal services are not liable for GST.

2. Private firms involved in the business of treating industrial effluent in bulk will charge 18 GST.

3. Disposal of hazardous waste services may need to be classified under different HSN codes and may attract GST separately.

It is important to pay attention as businesses and municipal corporations have to ensure that they determine if the nature of service provided is taxable or exempt so that they comply with GST laws.

Compliance and Billing Considerations for Service Providers

The registrants or service providers of Sewage Collection, Treatment and Disposal services With HSN 9994 need to comply with the GST requirements by.

1. Making an application for registration for GST if they exceed the specified turnover limit.

2. Preparing Tax invoices where they indicate HSN code 9994 and charge 18 GST.

3. Ensuring that GST returns prepared are submitted on a timely basis to avoid issues like fines etc.

4. Creating a file including records of the below information that will allow tax audits and other compliance procedures to be conducted in a straightforward manner.

Not adhering with these provisions will yield consequences like incurring fines and other legal issues.

Conclusion

The assignment of disposal sanitation services for sewage collection within HSN code 9994 is necessary for the taxation management within the waste sector. The service provider is required to comply with invoicing, billing, and return filing as the GST rate is 18%. Furthermore, knowing how the sewage waste disposal services compare to other taxed services, such as the ones under the putty GST rate, helps businesses and providers plan their financial spending.

Private businesses, municipalities, and providers of industrial waste treatment have to keep abreast with the tax changes to accurately and actively participate in the sanitation and environment of India. The compliance with GST provisions and its utilization serves as an opportunity for advancement in the sewage collection industry with guarantee of properregulation.

FAQs

1. What is the GST rate for services under 9994 HSN code?

The applicable GST for sewage collection and waste management service under 9994 HSN code is 18 percent.

2. Which services fall under 9994 HSN code?

Sewage waste disposal, wastewater treatment, and septic tank cleaning fall under the 9994 HSN code services list.

3. Is sewage collection under 9994 HSN code exempt from GST?

The sewage collection services under 9994 HSN code do not attract GST if provided under specific conditions by a government body, otherwise they are taxed at a standard rate of 18% GST.

4. In what manner does the 9994 HSN code impact businesses related to sewage waste disposal?

Sewage waste disposal businesses should apply an 18% GST and comply with all requirements regarding invoicing and filing under the 9994 HSN code.

5. What is the difference between sewage collection (9994 HSN code) and the putty GST rate?

The services within the boundaries of putty collection have a GST rate of 28% as putty is categorized under separate HSN code unlike the Sewage collection services under 9994 HSN code which has 18% GST.

6. Should small sewage treatment service providers are mandated to register for GST under 9994 HSN code?

If their annual turnover exceeds the GST exemption threshold, small service providers need to register for GST and adopt the 9994 HSN code with an 18% tax rate.

7. Is it possible for the companies to claim input tax credit for services put under 9994 HSN code?

Yes, a GST registered business can claim input tax credit for expenses to services related to sewage waste disposal classified as 9994 HSN code.

8. Does charging GST to private companies providing sewage waste disposal services make sense?

It does make sense for private companies involved in sewage waste disposal to charge 18% GST and use 9994 HSN code unless some exemptions apply.

9. How do service providers of sewage collection file GST for 9994 HSN code?

Service suppliers of sewage collection will use the appropriate code and will file their returns reporting the tax collected along with the input tax credits and GST returns.

10. Are there any exemptions for sewage services carried out under the supervision of the government for 9994 HSN code?

Private service providers always charge 18% GST on the services while certain government prescribed sewer waste disposal services may be covered under some exemption from GST.