GST Rates on Construction
The introduction of GST in construction services has wielded significant influence over the industry’s dynamics. Understanding the nuances of GST within construction work is pivotal for ensuring operational smoothness and financial astuteness.
Typically, construction services are subject to an 18% GST rate, yet exceptions exist. Affordable housing projects incur a minimal 1% GST rate, while certain infrastructure endeavours like roads and bridges bear a 5% GST rate. Materials used in construction also face varying GST rates cement stands at 28%, bricks at 12%, and sand at 5%, exemplifying the diverse spectrum of taxations across different materials.
Construction involves a multifaceted process encompassing planning, design, financing, and occupation readiness. Rather than a singular task, large-scale construction embodies a remarkable display of multitasking. Navigating the intricacies of Goods and Services Tax (GST) proves challenging for developers, contractors, and property owners in this realm.
GST Rate and HSN Code in Construction Services
|
CONSTRUCTION ACTIVITES |
GST Rates | HSN CODE |
| Affordable housing apartment construction for projects beginning on or after 1st April 2019 | 1%* | 9954 |
| Non-affordable housing apartment construction for projects beginning on or after 1st April 2019 | 5%* | 9954 |
| Construction of commercial apartments in REP except Residential Real Estate Project (RREP) | 12%* | 9954 |
| -Works contract services (where the material is supplied by contractor) | 12% | 9954 |
| Works contract services (where only labour is supplied by contractor) | 18% | 9987 |
| Composite supply of works contract and goods (where the value of goods is less than 25% of the total contract value) | 18% | 9954 |
| Composite supply of works contract and goods (where the value of goods is 25% or more of the total contract value) | 12% | 9954 |
*After reducing the 1/3rd towards land component from 1.5%, 7.5% and 18%.3
GST Rates on Construction Materials
| Materials | GST Rates |
| Sand | Oil shale or bituminous, Asphaltic Rocks, Natural Asphaltites, Tar Sand, Asphalt- 18%
Natural sand- 5% |
| Crushed Stones, Pebbles, Gravel | 5% |
| Coal | 5% |
| Building Stones | 5% |
| Brick | 5% – 28% |
| Tiles | 5%: Earthen or roofing tiles
18%: Bamboo flooring tiles 28%: Other tiles |
| Mica | 12% |
| Granite and marble | Blocks- 12% Not in Blocks- 28% |
| Steel and Iron | 18% |
| Bathroom Interiors and Appliances | Pipes and tubes, fitting- 18% Other items- 28% |
| Cement | 28% |
| Wallpaper | 28% |
| Varnish and Paint | 28% |
| Electrical Appliances | 28% |
From ,
Krishnakant Jakhotia
Mobile No :- 9422507911
Emali Id :-taktalknew@gmail.com
