GST for Cleaning Services – Complete Guide to 18% Tax, SAC Codes & Specialized Cleaning
Clear answers for specialized cleaning companies — façade cleaning, industrial tank cleaning, carpet and sofa cleaning, post-construction cleaning, glass cleaning, and deep sanitization. Covers GST rate, correct SAC codes (998533 vs 998534 vs 998535), TDS 194C at 2%, RCM on sub-contracted staff, ITC on heavy equipment, and how this differs from regular housekeeping under GST.
Quick Summary – GST Rules for Cleaning Services
- Is GST applicable to cleaning services? Yes — all cleaning services (specialized, industrial, façade, carpet, post-construction) are taxable at 18% GST.
- GST rate: 18% (CGST 9% + SGST 9% or IGST 18%). No concessional slab for any cleaning category.
- SAC code matters: 998533 (building cleaning), 998534 (industrial cleaning), 998535 (specialized cleaning) — using the wrong code is a common mistake.
- TDS applicable: Section 194C at 2% — cleaning is treated as a works contract, not professional service.
- RCM: Applies on sub-contracted cleaning staff from unregistered vendors.
- ITC advantage: Heavy on equipment — scrubber driers, high-pressure washers, sky-lifts, scaffolding, industrial vacuums — full ITC available.
- Registration: Mandatory above ₹20 Lakh turnover (₹10 Lakh special states) or any inter-state supply.
- Place of supply: The site where cleaning is performed — not the client's registered office.
- Difference from housekeeping: Housekeeping = regular janitorial (SAC 998533); Cleaning Services = specialized/industrial (SAC 998534 or 998535) with heavy equipment and project-based billing.
Takeaway: Cleaning services are 18% taxable with the same TDS/RCM rules as housekeeping — but the heavy equipment component creates a much bigger ITC opportunity. Getting the SAC code right is critical for accurate invoicing.
1. What is GST for Cleaning Services? (Overview)
GST for cleaning services is the tax framework for specialized cleaning businesses that go beyond routine janitorial work. These are project-based, equipment-intensive services that demand technical expertise, safety compliance, and specialized machinery.
The sector covers several distinct sub-categories:
Unlike housekeeping — which is monthly recurring janitorial work — cleaning services are typically project-based, equipment-heavy, and involve higher-value contracts. This changes the ITC profile significantly.
Takeaway: Cleaning services are 18% taxable like housekeeping — but the heavy equipment and project-based billing create a different compliance footprint. ITC becomes the biggest financial lever.
2. Is GST Applicable to Cleaning Services in India?
Yes — GST applies to all cleaning services at 18%. Whether the service is façade cleaning, industrial cleaning, carpet cleaning, or post-construction cleanup, the rate is uniformly 18%.
Types of Cleaning Services and Their GST Rate
| Service Type | GST Rate | Notes |
|---|---|---|
| Façade / Glass Cleaning | 18% | High-rise exterior cleaning |
| Industrial / Factory Cleaning | 18% | Machinery, tank, pipeline cleaning |
| Carpet / Sofa / Upholstery | 18% | Deep extraction cleaning |
| Post-Construction Cleaning | 18% | Debris removal, final finish |
| Deep Sanitization / Disinfection | 18% | Hospital-grade treatment |
| Water Tank Cleaning | 18% | Residential/commercial sanitization |
| Commercial Kitchen Deep Cleaning | 18% | Restaurant/hotel kitchen degreasing |
| Swimming Pool Cleaning | 18% | Chemical treatment + cleaning |
Why No Exemption Applies
- Not Education/Healthcare: Even if you clean a hospital or school, your service is 18% taxable.
- Not Charitable: Cleaning services by commercial providers are always taxable.
- Not Manpower Supply: Specialized cleaning is project-based, not ongoing labour deployment — but still 18%.
Takeaway: Every cleaning service — regardless of specialization — attracts 18% GST.
3. What is the GST Rate and Correct SAC Code for Cleaning Services?
The GST rate for cleaning services is 18% — and the correct SAC code depends on the exact type of cleaning being done. Using the wrong SAC code is one of the most common compliance errors in this sector.
SAC Code Breakdown for Different Cleaning Services
| Service | SAC Code | GST Rate |
|---|---|---|
| Building / Office / Home Cleaning | 998533 | 18% |
| Industrial Cleaning Services | 998534 | 18% |
| Specialized Cleaning (Façade, Carpet, Sofa, Deep) | 998535 | 18% |
| Disinfecting / Exterminating (Overlap with Pest Control) | 998531 | 18% |
| Water Tank Cleaning (Specialized) | 998535 | 18% |
| Pool Cleaning (Specialized) | 998535 | 18% |
How to Pick the Right SAC Code
- Regular Building Cleaning: Use 998533 — for ongoing janitorial services to offices, homes, and buildings.
- Industrial / Factory / Tank: Use 998534 — for cleaning industrial premises, machinery, tanks, and pipelines.
- Façade / Carpet / Sofa / Deep: Use 998535 — for specialized cleaning that requires special equipment or techniques.
- Mixed Contract: If one contract covers multiple cleaning types, use the SAC code of the principal service (highest value component).
CGST+SGST vs IGST
- Intra-State Supply: Cleaning site is in the same state as your business — charge CGST 9% + SGST 9%.
- Inter-State Supply: Cleaning site is in a different state — charge IGST 18%.
- Place of Supply: The location where cleaning is performed (site address), not the client's registered office.
Takeaway: 18% is the rate. The right SAC code and place of supply drive invoicing accuracy — get both right or the client's ITC claim breaks.
4. How is Cleaning Services Different from Housekeeping Under GST?
Both are 18% taxable — but the SAC code, contract structure, and ITC profile differ significantly. This is the most important distinction for businesses trying to decide which services to offer and how to price them.
Key Differences
| Aspect | Housekeeping | Specialized Cleaning |
|---|---|---|
| GST Rate | 18% | 18% |
| SAC Code | 998533 (building cleaning) | 998534 (industrial) or 998535 (specialized) |
| Contract Type | Monthly recurring | Project-based or AMC |
| Equipment Use | Low — mops, vacuums, chemicals | High — scrubber driers, sky-lifts, high-pressure washers |
| Labour Intensive | Yes — cleaning staff heavy | Mixed — equipment + skilled technicians |
| ITC Significance | Moderate — on chemicals, uniforms, wages (no ITC) | High — on heavy equipment and machinery |
| Typical Value | ₹15,000–₹50,000/month per site | ₹50,000–₹10,00,000+ per project |
| TDS Section | 194C (2%) | 194C (2%) |
| RCM Applicability | Yes (sub-contracts) | Yes (sub-contracts) |
Why the Distinction Matters
- SAC Code Choice: Using 998533 for specialized cleaning understates the sophistication of the service and may cause client disputes.
- Client Perception: Industrial clients expect SAC 998534; façade/deep cleaning clients expect 998535.
- ITC Claim: Specialized cleaning businesses can claim ITC on very expensive equipment — this is the key financial lever.
- Contract Structure: Project-based contracts with clear deliverables support higher pricing and cleaner GST treatment.
Takeaway: Choose the SAC code that matches the actual service delivered. Regular cleaning → 998533. Industrial → 998534. Specialized → 998535.
5. Do Cleaning Service Businesses Need GST Registration?
Yes — cleaning service businesses need GST registration once annual turnover exceeds ₹20 Lakh (₹10 Lakh for special category states), or if they make inter-state supplies. For most businesses, the inter-state rule triggers registration from Day 1 because specialized cleaning projects often span states.
Registration Requirements by Scenario
| Scenario | GST Registration |
|---|---|
| Only local clients, turnover below ₹20 Lakh | Not required |
| Turnover above ₹20 Lakh (₹10 Lakh special states) | Mandatory |
| Any inter-state supply (site in another state) | Mandatory |
| Supplying to registered corporate clients across states | Mandatory |
| B2B contracts with GSTIN-holding clients | Mandatory |
| Sub-contracting from another registered agency | Mandatory |
| Residential-only cleaning, below ₹20 Lakh | Not required |
Documents Required for Registration
- PAN card of the entity (proprietorship / company / partnership / LLP)
- Aadhaar of the authorised signatory
- Business address proof (rent agreement + electricity bill)
- Certificate of incorporation / Partnership deed / Trust deed
- Bank account details (cancelled cheque)
- Photograph of the authorised signatory
- Board resolution / authorisation letter
- Digital Signature Certificate (for online filing)
- Safety certifications (for façade / height work — where applicable)
Safety Compliance for Specialized Cleaning
- Façade / Height Work: Rope access or scaffolding work requires safety certifications and trained technicians.
- Industrial / Tank Cleaning: Confined space entry requires specific safety protocols and permits.
- Chemical Handling: Industrial cleaning chemicals may require specific licenses.
- Not a GST Requirement: These are workplace safety laws — not GST-specific — but GST registration assumes legally compliant business operations.
Takeaway: Multi-state projects trigger mandatory registration quickly. Plan for GST registration from Day 1 if you serve clients across states.
6. Is TDS Applicable on Cleaning Service Contracts? (194C at 2%)
Yes — TDS applies at 2% under Section 194C on cleaning service contracts. Cleaning services are treated as works contracts, not professional services, so 194J at 10% does not apply.
194C vs 194J for Cleaning Services
| Contract Type | TDS Section | Rate |
|---|---|---|
| Standard Cleaning Contracts | 194C | 2% |
| Façade / Glass Cleaning | 194C | 2% |
| Industrial Cleaning | 194C | 2% |
| Carpet / Sofa Cleaning | 194C | 2% |
| Post-Construction Cleaning | 194C | 2% |
| Deep Sanitization | 194C | 2% |
| Cleaning Consultancy / Audit | 194J | 10% |
Why Most Cleaning Contracts Are 194C
- Service + Material Component: Cleaning involves both service (labour) and material (chemicals, equipment) — the essence of a works contract under 194C.
- Result-Based: Contracts define deliverables (clean building façade, sanitized tanks) — 194C applies.
- Project Invoicing: Single project invoices for deep cleaning, post-construction, and façade work are 194C.
- 194J Applicability: Only when billed as pure professional cleaning consultancy or hygiene audit.
TDS Threshold and Impact
Takeaway: Cleaning services fall under 194C at 2%. Only pure cleaning consultancy is 194J at 10%. Clarify the classification with clients in the contract.
7. Does Reverse Charge Apply on Sub-Contracted Cleaning Staff?
Yes — reverse charge (RCM) applies when a specialized cleaning company sub-contracts cleaning staff from unregistered individuals or small agencies. The company must pay 18% GST on the sub-contract value and can claim the same amount as ITC.
When Reverse Charge Applies
- Sub-Contract to Unregistered Individual: Hiring individual cleaners or technicians directly without GST registration triggers RCM.
- Sub-Contract to Unregistered Small Agency: Small cleaning agencies below the threshold don't charge GST — you must pay under RCM.
- Manpower Supply Component: If the sub-contract is for supplying labour for specialized cleaning (rather than the full project), RCM applies.
How RCM Works for Cleaning Businesses
When Reverse Charge Does NOT Apply
- Registered Sub-Contractor: If the sub-contracted cleaning agency is GST-registered, they charge GST on their invoice — no RCM.
- Individual Recipient: RCM under notification 29/2019 applies only when the recipient is a registered business entity.
- Salaried Employees: If the cleaning staff are on your payroll (salary), no RCM applies.
- Equipment Rental: Renting equipment (sky-lifts, scaffolding) from a registered vendor is not RCM — the vendor charges GST.
• Issue self-invoice for ₹2,00,000 + IGST 18% (₹36,000)
• Pay ₹36,000 IGST to government
• Claim ₹36,000 as ITC in GSTR-3B
• Net GST impact: Zero — but reporting is mandatory
Takeaway: RCM on sub-contracted cleaning staff is one of the most missed compliance items. Set up a self-invoice process for every unregistered sub-contractor before payment.
8. Can Cleaning Service Businesses Claim Input Tax Credit (ITC)?
Yes — cleaning service businesses charging 18% GST can claim full ITC on business expenses. Because specialized cleaning is equipment-intensive, the ITC potential is significantly higher than regular housekeeping. Heavy equipment investments translate into major cash flow savings.
What ITC Can Be Claimed
ITC on scrubber driers, ride-on scrubbers, high-pressure washers, industrial vacuums, carpet extraction machines (capital goods — huge amounts).
ITC on sky-lifts, scaffolding, rope access kits, safety harnesses, cradles for façade work.
ITC on industrial degreasers, disinfectants, specialty cleaners, and consumables.
ITC on service vehicles, utility vans, fuel (with GST invoice), and vehicle maintenance.
ITC on helmets, harnesses, respirators, gloves, and safety equipment.
ITC on office rent, warehouse space for equipment, electricity, and internet.
ITC on technician training, safety certifications, and rope access certifications.
ITC on reverse-charged sub-contracted cleaning staff — full 18% IGST claimable.
What ITC is Blocked
- Employee Salaries: No ITC on in-house staff salaries (GST not charged on salaries).
- Construction: ITC on office building construction is blocked under Section 17(5).
- Food & Beverages: ITC on staff canteen food is generally blocked.
- Personal Use: Any vehicle or equipment used for personal purposes must be excluded.
Takeaway: Equipment ITC is the biggest financial lever for specialized cleaning businesses. A single sky-lift or scrubber drier purchase can generate ITC worth several months of GST liability.
9. How to Invoice Cleaning Services Under GST?
A GST-compliant invoice is critical for specialized cleaning projects because each project tends to be high-value and often audited by corporate clients. Itemization and clarity matter more than in routine housekeeping.
Mandatory Fields on a Cleaning Invoice
- Company name, address, and GSTIN
- Client name, address, and GSTIN
- Unique invoice number and date
- Project description: "Post-Construction Cleaning — [Site Name] — [Area]"
- SAC Code: 998533 / 998534 / 998535 depending on service type
- Project site address (place of supply)
- Manpower deployed / equipment used (optional but useful for large contracts)
- Taxable value
- GST rate (18%) and amount (CGST+SGST or IGST)
- Place of supply (site location)
- Signature of authorised signatory
Project-Based vs AMC vs One-Time Invoicing
| Service Type | Invoicing |
|---|---|
| Post-Construction Cleaning | Single invoice on project completion |
| Façade Cleaning (Project) | Milestone-based or single invoice |
| Industrial Cleaning AMC | Monthly, quarterly, or annual invoice |
| Carpet / Sofa Cleaning | Per assignment |
| Deep Sanitization | Per project or per visit |
| Advance Payment | Receipt voucher + GST on advance |
• Company: ProClean Solutions Pvt Ltd, Pune (GSTIN: 27XXXXX)
• Client: ABC Builders, Mumbai (GSTIN: 27XXXXX)
• Service: Post-Construction Cleaning — 15,000 sq ft commercial office
• Site: Mumbai (place of supply = Maharashtra)
• SAC: 998535
• Taxable Value: ₹3,00,000
• IGST @ 18%: ₹54,000
• Total: ₹3,54,000
Takeaway: Specialized cleaning invoices must clearly describe the service, site, and scope. Corporate clients often audit these invoices before paying — clarity prevents disputes.
10. 10 Common GST Mistakes Cleaning Service Businesses Make (With Solutions)
Takeaway: The biggest GST risks for specialized cleaning businesses come from wrong SAC codes, missing RCM on sub-contracts, and unclaimed ITC on heavy equipment.