GST Rates on Construction

Loading

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

 

Menu