CA
682 Points
Joined April 2012
It seems you have mixed up two different concepts.
Works contract is basically the Supply of service where contractor under takes supply both goods as well as labour work. It includes both supply of goods as well as service. Hence SAC code is applicable.
If supplier only supplies goods and not labour then it is covered under Supply of Goods and HSN code is applied.
Generally, rates applicable to the Goods supplied as separately indicated in HSN are applicable to the services in relation to supply of such goods, if rates for such service are not specifically mentioned any where.