GST for CCTV installers in India: invoices, HSN codes and common mistakes

CCTV work sits at an awkward point in the GST system. A single job usually combines goods, such as cameras and cable, with services, such as installation and configuration. How you bill it affects the rate, the place of supply and your customer's input tax credit.

This guide covers the concepts an installer should understand, and the mistakes that most often cause trouble. It's general information and not tax advice. Rates, thresholds and classifications change, so please confirm the current position and your specific facts with your chartered accountant or GST practitioner.

Do you need to register?

Registration generally becomes compulsory when your aggregate turnover exceeds the threshold for your state and type of supply. The commonly cited limits are ₹40 lakh for suppliers of goods only in most states, and ₹20 lakh where services are involved, with lower limits in some special category states. Certain situations, such as inter-state supply of goods, may require registration regardless of turnover.

An installation company often supplies both goods and services, so don't assume the higher limit applies. Ask your accountant.

Many business customers prefer dealing with GST-registered suppliers because they may be able to claim input tax credit. Voluntary registration may therefore make commercial sense even below the threshold, but it comes with compliance duties.

Composite supply, mixed supply and works contract

These three terms matter most for an installer.

Composite supply

Under the CGST Act, a composite supply consists of two or more supplies that are naturally bundled and supplied together in the ordinary course of business, with one being the principal supply. The whole is generally taxed at the rate of the principal supply.

A CCTV job with cameras and installation may be treated this way when they're naturally supplied as one. Your accountant will help you decide which part is principal in your situation.

Mixed supply

A mixed supply combines items that are not naturally bundled, but are sold together for a single price. It is generally taxed at the highest rate that applies to any item in the bundle. Bundling a camera system with unrelated items for one price could fall here.

Works contract

Under GST, a "works contract" is specifically defined in relation to immovable property, covering activities such as building, fitting out, installation and repair of immovable property where goods transfer as part of the contract. Whether a particular CCTV installation counts as a works contract depends on the facts. For example, is the system permanently attached and part of the immovable property? Could it be removed and reused without damage?

This matters for rate, place of supply and input tax credit. Large projects deserve professional advice, particularly where your customer is a government body or a builder.

Separate pricing

Some installers invoice equipment and installation as separate lines or under separate contracts. Showing separate lines doesn't automatically mean these are separate supplies for GST purposes. The nature of the agreement matters, so get advice rather than assuming a layout changes the tax outcome.

HSN and SAC codes

Goods use HSN codes, and services use SAC codes. Commonly seen headings for CCTV-related goods include 8525 for television cameras and related items, and 8521 for video recording equipment. Other items, such as cables, hard drives and switches, have their own codes. Choose each with care, or have your accountant confirm your list.

Things to keep in mind:

• The number of digits required on an invoice depends on your turnover and the type of supply, with rules that have changed over time.
• A single product may be classified differently depending on its specific nature.
• Save your confirmed codes in your item list so that each staff member uses the same ones.

Our quote documentation shows where HSN codes are entered.

GST rates

Rates can change, including the major revisions to GST rate structure that took effect on 22 September 2025. At the time of writing, CCTV cameras under heading 8525 and recorders under heading 8521 are commonly billed at 18%, but confirm the rate for each item with your accountant. Check the current notification for your specific goods and services, rather than relying on an old invoice or a supplier's line. When the rate changes, update your templates and item lists immediately, and check which rate applies to any invoice raised around the change.

Place of supply

Place of supply decides whether you charge CGST and SGST or IGST.

• CGST + SGST applies to an intra-state supply, where the supplier's location and place of supply are in the same state.
• IGST applies to an inter-state supply.

The rule isn't simply "where the customer's office is". Under the IGST Act, the rules differ for goods and for services. For example, for goods where movement is involved, it's generally where the movement ends. For services directly connected with immovable property, it's generally where the property is located.

For example, you're registered in Karnataka and your customer's head office is in Maharashtra. If you install a system at their Bengaluru warehouse, the answer depends on how the supply is treated, and the customer's billing details. Getting this wrong can mean paying the wrong type of tax, and your customer may be unable to claim credit. For out-of-state projects, you may also have to consider whether you need registration in that state. Ask your accountant.

What a tax invoice should contain

Rule 46 of the CGST Rules sets out the particulars of a tax invoice. Among other things, it should show:

• your name, address and GSTIN
• a consecutive serial number, unique for the financial year
• date of issue
• the recipient's name, address and GSTIN if registered
• HSN or SAC code
• description, quantity and unit
• total value, taxable value and any discount
• rate and amount of tax, split by CGST, SGST and IGST
• place of supply and state name and code, for inter-state supplies where applicable
• delivery address where this differs from the place of supply
• signature or digital signature

Check the current rule text for the full list. Our invoice guide shows how these fields work in CamVerion.

Proforma invoices and advances

A proforma invoice is not a tax invoice, and your customer can't claim credit from it. This is a common source of confusion when advance payments are involved.

Advances have rules of their own. Depending on what you supply and when, you may have to issue a receipt voucher and may be liable for GST on an advance for services. Rules differ for goods and services, so ask your accountant how to handle your typical stage payments, and what document to issue on receipt.

Time of supply

GST becomes payable based on the "time of supply", which depends on events such as invoicing and payment. In stage-payment projects, make sure you issue invoices within the permitted time and treat stage payments correctly. Waiting until the whole project finishes to issue any tax invoice may be wrong, especially in long projects.

E-invoicing and e-way bills

E-invoicing: If your aggregate turnover is above the prescribed limit, you may need to report B2B invoices on the Invoice Registration Portal. The threshold has come down over the years and was ₹5 crore at the time of writing. Coverage is generally based on your turnover in any financial year since 2017-18, so a business that once crossed the limit usually stays covered even if turnover later falls. Businesses with turnover of ₹10 crore or more also face a time limit for reporting invoices on the portal, reported as 30 days. Check whether you're covered, and confirm the current figures.

E-way bills: Moving goods above a set value generally requires an e-way bill, subject to specific rules and state provisions. This may apply when you move equipment to a site, including stock transfers and goods moving for installation. A van stopped without the right papers can lead to delays and penalties.

Input tax credit

You may claim credit on eligible purchases, provided you meet the conditions: holding a valid invoice, receiving the goods or services, and the supplier reporting and paying the tax, among other requirements.

• Reconcile your purchases with the auto-generated statements regularly.
• Check your supplier's GSTIN and filing behaviour.
• Note that the law blocks credit in some cases, including certain works contract and immovable property situations.

Your customers will be equally concerned about their own credit. A wrong GSTIN or place of supply on your invoice can become their problem, and then quickly yours.

Common mistakes

• Using an old rate from a template. Check rates whenever notifications change.
• Wrong place of supply. Particularly on multi-state jobs.
• Using the customer's head office GSTIN incorrectly. A customer with branches may have several registrations. Ask which one they want billed.
• Treating a proforma as a tax invoice. Your customer can't claim credit from it.
• Mixing up HSN codes. Agree on a list with your accountant.
• Ignoring advances. Check what must be issued when you get an advance.
• Late or incorrect returns. Interest and late fees can add up.
• Forgetting e-way bills. Especially for high-value site deliveries.
• Not issuing a credit note. If a quantity changes after invoicing, correct it the right way.
• Assuming that separate lines change the tax. The substance of the supply matters.

Tips for smoother compliance

1. Use one item list. Each product has its confirmed HSN code and rate.
2. Ask for GSTIN and billing details at the quote stage. This avoids reissuing invoices later.
3. Check the customer's GSTIN. The government portal lets you verify a number.
4. Note the site state on every job. This helps your place of supply decision.
5. Close each month on time. Check invoices, credit notes and reconciliation with your accountant.
6. Keep records. Keep contracts, delivery records and handover notes with the invoice. Our GST returns documentation shows how invoices feed into return data.

Questions to take to your accountant

• Are our typical jobs composite supplies, works contracts or something else?
• What are the correct HSN and SAC codes and rates for our regular items?
• How should we handle advances and stage payments?
• What applies to out-of-state jobs?
• Do we need e-invoicing, and when do we need e-way bills?
• How should we handle a site that's in a different state from the billing address?
• What should we do about annual maintenance contracts?

One hour with a good adviser, using real examples from your last few jobs, can prevent much more expensive corrections later. Put the answers into your templates and process, so that everyone follows them without having to think about it.