ANALYSIS OF VARIOUS NOTIFICATIONS UNDER GST LAW ON
CONSTRUCTION SERVICES
(UPDATED AS ON 04.11.2017)
| S. No. | Nature of Work Contract Services | CGST | Conditions |
| 1. | Construction of a Complex, Building, Civil Structure or a part thereof, including a complex or Building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier.
Notification No. 11/2017-Central Tax (Rate) Dated: 28th June, 2017
|
9% | 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 above paragraph, “Total Amount” means the sum total of,- (a) consideration charged for aforesaid service; and (b) amount charged for transfer of land or undivided share of land, as the case may be. |
| 2 | Composite Supply of Works Contract as defined in clause 119 of section 2 of Central Goods and Services Tax Act 2017
Notification No. 11/2017-Central Tax (Rate) Dated: 28th June, 2017 |
9% | |
| 3 | Composite Supply of Works Contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, supplied to the Central Government, State Government, a Local Authority or a Governmental Authority or a Government Entity by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of –
(a) 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); (b) canal, dam or other irrigation works; (c) pipeline, conduit or plant for (i) Water supply (ii) Water treatment, or (iii) Sewerage treatment or disposal. Notification No. 20/2017-Central Tax (Rate) Dated : 22nd August, 2017 Notification No. 31/2017- Central Tax (Rate) Dated : 13th October, 2017 |
6% | Where the services are supplied to a Govt. Entity, they should have been procured by the said entity in relation to a work entrusted to it by the Central Govt., State Govt., Union territory or local authority, as the case may be.
|
| 4 | Composite Supply of Works Contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, supplied by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of,-
(a) a road, bridge, tunnel, or terminal for road transportation for use by general public; (b) a civil structure or any other original works pertaining to a scheme under Jawaharlal Nehru National Urban Renewal Mission or Rajiv Awaas Yojana; (c) 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; (d) 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; (e) a pollution control or effluent treatment plant, except located as a part of a factory; or (f) a structure meant for funeral, burial or cremation of deceased. Notification No. 20/2017-Central Tax (Rate) Dated : 22nd August, 2017 |
6% | Supplied to anyone.
No Specific Service Receiver. |
| 5 | Composite Supply of Works Contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, supplied by way of construction, erection, commissioning, or installation of original works pertaining to,-
(a) railways, excluding monorail and metro; (b) a single residential unit otherwise than as a part of a residential complex; (c) & (d) 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; • the “Affordable Housing in Partnership” component of the Housing for All (Urban) Mission / Pradhan Mantri Awas Yojana; • any housing scheme of a State Government; (e) Post Harvest Storage infrastructure for agricultural produce including a cold storage for such purposes; or (f) Mechanized food grain handling system, machinery or equipment for units processing agricultural produce as food stuff excluding alcoholic beverages. Notification No. 20/2017-Central Tax (Rate) Dated : 22nd August, 2017 |
6% | Supplied to anyone.
No Specific Service Receiver.
Following Works are not covered here – Fabrication, Completion, Fitting out, Improvement, Modification, Repair, Maintenance, Renovation & Alteration. |
| 6 | Services provided to the Central Government, State Government, Union Territory, a Local Authority (Note 3) or a Governmental Authority or a Government Entity by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of –
(a) a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession; (b) a structure meant predominantly for use as (i) an educational, (ii) a clinical, or (iii) an art or cultural establishment; (c) 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. Notification No. 24/2017-Central Tax (Rate) Dated : 21st September, 2017 Notification No. 31/2017- Central Tax (Rate) Dated : 13th October, 2017 |
6% | Local Authority means Panchayat Samiti, Municipality, Cantonment Board, Municipal Committee, a Zilla Parishad, a District Board, a Municipal Committee, a Zilla Parishad, a District Board, and any other authority legally entitled to, or entrusted by the Central Government or any State Government with the control or management of a municipal or local fund, a Regional Council or a District Council constituted under the Sixth Schedule to the Constitution, a Development Board constituted under article 371 of the Constitution; or (g) a Regional Council constituted under article 371A of the Constitution.
Where the services are supplied to a Govt. Entity, they should have been procured by the said entity in relation to a work entrusted to it by the Central Govt., State Govt., Union territory or local authority, as the case may be.
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| 7 | Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, involving predominantly Earth Work (that is, constituting more than 75% of the value of the works contract) provided to the Central Government, State Government, Union territory, local authority, a Governmental Authority or a Government Entity.
Notification No. 31/2017- Central Tax (Rate) Dated : 13th October, 2017 |
2.5% | Where the services are supplied to a Govt. Entity, they should have been procured by the said entity in relation to a work entrusted to it by the Central Govt., State Govt., Union territory or local authority, as the case may be. |
| 8 | 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.
Notification No. 31/2017- Central Tax (Rate) Dated : 13th October, 2017 |
6% | |
| 9 | Construction Services other than (1), (2), (3), (4), (5), (6), (7) and (8) above.
Notification No. 31/2017- Central Tax (Rate) Dated : 13th October, 2017 |
9% | |
| 10 | Services provided by way of Pure Labour Contracts of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of a civil structure or any other original works pertaining to the Beneficiary led Individual House construction or enhancement under the Housing for All (Urban) Mission or Pradhan Mantri Awas Yojana.
Notification No. 12/2017- Central Tax (Rate) Dated : 28th June, 2017 |
NIL | |
| 11 | Services by way of Pure Labour Contracts of construction, erection, commissioning, or installation of original works pertaining to a Single Residential Unit otherwise than as a part of a Residential Complex.
Notification No. 12/2017- Central Tax (Rate) Dated : 28th June, 2017 |
NIL |
Author Bio
Hi,
I have recently purchased villa in Bangalore but initially they will allocate and register land in my name.
Post that they are going to construct the house/villa for me. So they are providing the construction service and what would be the GST they have to charge. Please doe let me know
Regards
Whether we can avail IGST input on construction of building given to sub vendor? Please note that GST registered vendor of other state can perform construction job in other state? Whether he can raise Construction Invoice of one state to other state?
a client purchase land and made residential flat and than sale, what is gst impact when he purchase builiding material and labour etc.
I am a sub contractor and while billing to principal contractor i.e. builder I am adding supervision charges @ 15%. Whether the same is payable under gst regime. Pl guide me
Thanks for the Info. My Query is about GST rate on pure labour contracts to Govt/local body?
Dear Sir,
One of the builder is levying 12% GST (6% + 6%) on the installment amount after proving 1/3rd deduction for the land value. Whereas another builder is levying 18% GST (9% + 9%) on the installment amount after proving 1/3rd deduction for the land value.
Kindly guide whether GST should be collected at 12% or 18%.
Dear Sir,
In small Building contractors what will be the GST , and once we purchased from steel, cement and other taxable materials with GST . what amount of GST shall be payable to government
example : contract value is 10Lakh means , if we have GST bill for steel cement tiles etc at the rate of 18% /28% , what will be the final figure of GST we have to pay ,kindly explain with example
thank you
Niranjan
Good Article. Very Informative
The scope of land component deduction has been extended to other clauses also vide notification 31/2017 Central Tax Rate dt 13/10/17 point number (ii)
Thanks to writer for informative article.