GST RATES FOR CONSTRUCTION SECTOR ( As amended upto 20-02-2018)
By: – CASanjay Kumawat
Goods and Services Tax – GST
Dated:- 22-2-2018
In exercise of the powers conferred by sub-section (1) of section 9, sub-section (1) of section 11, sub-section (5) of section 15 and sub-section (1) of section 16 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, and on being satisfied that it is necessary in the public interest so to do, hereby notifies that the central tax, on the intra-State supply of services of description as specified in column (3) of the Table below, falling under Chapter, Section or Heading of scheme of classification of services as specified in column (2), shall be levied at the rate as specified in the corresponding entry in column (4), subject to the conditions as specified in the corresponding entry in column (5) of the said Table:-
1. Tax rates:
S.No.
Chapter, Section or Heading
D
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“Central Government, State Government, Union territory, a local authority, a Governmental Authority or a Government Entity” [amended by Notification No. 31/2017-CT(R), dated 13.10.2017; Upto 12.10.2017 read it as “Government, a local authority or a Governmental authority”] by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of, –
* a historical monument, archaeological site or remains of national importance, archaeological excavation, or antiquity specified under the Ancient Monuments and Archaeological Sites and Remains Act, 1958 (24 of 1958);
canal, dam or other irrigation works;
pipeline, conduit or plant for (i) water supply (ii) water treatment, or (iii) sewerage treatment or disposal.
[Point (iii) amended by Notification No. 20/2017-CT(R), dated 22.08.2017]
9
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6
Provided that where the services are supplied to a Government Entity, they should have been procured by the said entity in rel
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01.2018 read it as “a civil structure or any other original works pertaining to the “In-situ rehabilitation of existing slum dwellers using land as a resource through private participation” under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana, only for existing slum dwellers;”]
a civil structure or any other original works pertaining to the “Beneficiary led individual house construction / enhancement” under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana;
(da) a civil structure or any other original works pertaining to the “Economically Weaker Section (EWS) houses” constructed under the Affordable Housing in partnership by State or Union territory or local authority or urban development authority under the Housing for All (Urban) Mission/ Pradhan Mantri Awas Yojana (Urban);
(db) a civil structure or any other original works pertaining to the “houses constructed or acquired under the Credit Linked Subsidy Scheme for Economically Weaker Section (EWS)/
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ion 2 of the Central Goods and Services Tax Act, 2017, supplied by way of construction, erection, commissioning, or installation of original works pertaining to,-
* railways, “including” [amended by Notification No. 01/2018-CT (R) dated 25.01.2018; Upto 24.01.2018 read it as “excluding”] monorail and metro;
a single residential unit otherwise than as a part of a residential complex;
low-cost houses up to a carpet area of 60 square metres per house in a housing project approved by competent authority empowered under the 'Scheme of Affordable Housing in Partnership' framed by the Ministry of Housing and Urban Poverty Alleviation, Government of India;
low cost houses up to a carpet area of 60 square metres per house in a housing project approved by the competent authority under-
1. the “Affordable Housing in Partnership” component of the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana;
2. any housing scheme of a State Government;
(da) low-cost houses up to
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al Authority or a Government Entity” [amended by Notification No. 31/2017-CT(R), dated 13.10.2017; Upto 12.10.2017 read it as “local authority or a governmental authority”] by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of –
* a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession;
a structure meant predominantly for use as (i) an educational, (ii) a clinical, or(iii) an art or cultural establishment; or
a residential complex predominantly meant for self-use or the use of their employees or other persons specified in paragraph 3 of the Schedule III of the Central Goods and Services Tax Act, 2017.
[Point (vi) amended by Notification No. 24/2017-CT(R), dated 21.09.2017]
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Provided that where the services are supplied to a Government Entity, they should have been procured by the said entity in relat
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k entrusted to it by the Central Government, State Government, Union territory or local authority, as the case may be.
(viii) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017 and associated services, in respect of offshore works contract relating to oil and gas exploration and production (E&P) in the offshore area beyond 12 nautical miles from the nearest point of the appropriate base line.
[Inserted by Notification No. 31/2017-CT(R), dated 13.10.2017]
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Upto 24.01.2018 :
(ix) Construction services other than (i), (ii), (iii), (iv), (v), (vi), (vii)and (viii) above.
[Inserted by Notification No. 31/2017-CT(R), dated 13.10.2017]
From 25.01.2018:
(ix) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017 provided by a sub-contractor to the main contractor providing services specified in item (iii) or item (vi) above to the Central Gover
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n procured by the said entity in relation to a work entrusted to it by the Central Government, State Government, Union territory or local authority, as the case may be.
(xi) Services by way of housekeeping, such as plumbing, carpentering, etc. where the person supplying such service through electronic commerce operator is not liable for registration under sub-section (1) of section 22 of the Central Goods and Services Tax Act, 2017.
[Point (xi) has been inserted by Notification No. 01/2018-CT (R) dated 25.01.2018]
2.5
Provided that credit of input tax charged on goods and services has not been taken
[Please refer to Explanation no. (iv)].
(xii) Construction services other than (i), (ii), (iii), (iv), (v), (vi), (vii), (viii),(ix), (x)and (xi) above.
[Point (xii) has been inserted by Notification No. 01/2018-CT (R) dated 25.01.2018]
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In case of supply of service specified in column (3), in item (i); sub-item (b), sub-item (c), sub-item (d), sub-item (da) and sub-item (db)
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specified in column (3) of the entry at item (i) against serial no. 3 of the Table above, involving transfer of property in land or undivided share of land, as the case may be, the value of supply of service and goods portion in such supply shall be equivalent to the total amount charged for such supply less the value of land or undivided share of land, as the case may be, and the value of land or undivided share of land, as the case may be, in such supply shall be deemed to be one third of the total amount charged for such supply.
Explanation .- For the purposes of paragraph 2, “total amount” means the sum total of,-
* consideration charged for aforesaid service; and
* amount charged for transfer of land or undivided share of land, as the case may be.”]
Value of supply of lottery shall be 100/112 of the face value or the price notified in the Official Gazette by the organising State, whichever is higher, in case of lottery run by State Government and 100/128 of the face valu
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services used exclusively in supplying such service has not been taken; and
credit of input tax charged on goods or services used partly for supplying such service and partly for effecting other supplies eligible for input tax credits, is reversed as if supply of such service is an exempt supply and attracts provisions of sub-section (2) of section 17 of the Central Goods and Services Tax Act, 2017 and the rules made thereunder.
Notes:
* The principal notification was published in the Gazette of India, Extraordinary, vide notification No. 11/2017 – Central Tax (Rate), dated the 28th June, 2017, vide number G.S.R. 690 (E), dated the 28th June, 2017 and was last amended by notification No. 20/2017-Central Tax (Rate) dated the 22nd August, 2017 vide number G.S.R. 1045(E), dated the 22nd August, 2017.
The principal notification was published in the Gazette of India, Extraordinary, vide notification No. 11/2017 – Central Tax(Rate), dated the 28th June, 2017, vide number G.S.R. 690 (E
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