Article compiles GST Rate on works contract services w.e.f 1st January 2022 mentioning Chapter, Section or Heading, Description of Services, GST Rate before 01st January 2022 and GST Rate with effect from 1st January 2022
GST Rate Chart in respect of works contract services w.e.f 01.01.2021
| Sl. No. | Chapter, Section or Heading | Description of Services | Old Rate (percent) | New Rate (Percent) – W.e.f 01.01.2022 [Employer – Project Authority]- Central Govt, State Govt, Union Territory and Local Authority | New Rate (Percent) w.e.f 01.01.2022 [Employer – project Authority]- Government Entity, Govt Authority & Others |
| 1. | Heading 9954 (Construction Services) | “(iii) 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 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) 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. |
12% | 12% | 18% |
| 2. | Heading 9954 (Construction Services) | (iv) 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; (c) ‘(c) a civil structure or any other original works pertaining to the “ln-situ redevelopment of existing slums using land as a resource, under the Housing for All (Urban) Mission/ Pradhan Mantri Awas Yojana (Urban);- N.No.1/2018 dated 25.01.2018 (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 ‘(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); N.No.1/2018 dated 25.01.2018 (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)/ Lower Income Group (LIG)/ Middle Income Group1 (MlG-1)/ Middle Income Group-2 (MlG-2)” under the Housing for All (Urban) Mission/ Pradhan Mantri Awas Yojana (Urban); N.No.1/2018 dated 25.01.2018 (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. a building owned by an entity registered under section 12AA of the Income Tax Act, 1961 (43 of 1961), which is used for carrying out the activities of providing, centralised cooking or distribution, for mid-day meals under the mid-day meal scheme sponsored by the Central Government, State Government, Union territory or local authorities. N.No.1/2018 dated 25.01.2018 |
12% | 12% | 12% |
| 3. | Heading 9954 (Construction Services) | (v) 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 including N.No.1/2018 dated 25.01.2018 monorail and metro; (b) a single residential unit otherwise than as a part of a residential complex; (c) 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; (d) low cost houses up to a carpet area of 60 square metres per house in a housing project approved “(da) low-cost houses up to a carpet area of 60 square metres per house in an affordable housing project which has been given infrastructure status vide notification of Government of India, in Ministry of Finance, Department of Economic Affairs vide F. No. 13/6/2009-INF, dated the 30th March,2017; N.No.1/2018 dated 25.01.2018 (e) post-harvest storage infrastructure for agricultural produce including a cold storage for such purposes; or (f) mechanised food grain handling system, machinery or equipment for units processing agricultural produce as food stuff excluding alcoholic beverages. |
12% | 12% | 12% |
| 4. | Heading 9954 Construction Services | “(vi) Services provided to the Central Government, State Government, Union Territory, a local authority or a governmental authority 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; or (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. |
12% | 12% | 12% |
| 5. | Heading 9954 (Construction Services) | “(vii) 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 75per cent. 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 | 5% | 5% | 18% |
| 6. | Heading 9954 (Construction Services) | (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. | 12% | 12% | 12% |
| 7. | Heading 9954 (Construction Services) | “(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 Government, State Government, Union territory, a local authority, a Governmental Authority or a Government Entity. | 12% | 12% | 12% |
| 8. | Heading 9954 (Construction Services) | (X) 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 (vii) above to the Central Government, State Government, Union territory, a local authority, a Governmental Authority or a Government Entity. | 5% | 5% | 18% |
| 9. | Heading 9954 (Construction Services) | Any other works contract services other than those mentioned above | 18% | 18% | 18% |
Author Bio
what is the works contract service – exemption hsn code ?
Sir, kindly provide the notification for the rates changed w.e.f 01.01.2022. It will be helpful to meet the GST audit.
Central Government vide Notification No. 25/2021-Central Tax (Rate) dated 18.11.2021 amended Notification No. 11/2017- Central Tax (Rate), dated the 28th June, 2017 whereby the words “a Governmental Authority or a Government Entity” are no more entitled for payment of tax @12% w.e.f. 01.01.2022. Your tabulation is confusing a lot. Mere clarification in comment section is not enough
No sir , if contractor is doing work of item no IV then in case of government authority,govt entity ,it would be 12 percent as well.
Sir ,as per my absevation of your comment ,it seems that you are already confused a lot .
Only clarification regarding this article is that
Item no vi & ix – Govt authority and govt entity -18 percent. please read the comment dated January’09, 2022 , given for Virendra ji . The points raised by you have already been covered on Jan’9 2022.
But as you are saying that all services provided to govt authority or gvt entity would be taxable @ 18 percent and It is not correct sir .
Kindly call me in case of clarification.
Item no vi & ix – Govt authority and govt entity -18 percent.
please read the comment dated January’09, 2022 , given for Virendra ji .
The points raised by have already been covered on Jan’9 2022
Priyanka ma’m
the mentioned points has already been clarified in comments section . your are right .
Please read the notification clearly
“(1) in column (3),in the heading “Description of Service”, in items (iii),(vi),(ix) and (x), for the
words “Union territory, a local authority, a Governmental Authority or a Government Entity”
the words “Union territory or a local authority” shall be substituted”
Does For any work done for government authority or government entity the rate shall be 18% and not 12%
GST in millitary Engineering services? MES is working for defence dept.
sir I doing lighting decoration or solor panal setup in govt department in state and central cpwd or central university .please tell me tax rate on this category
Dear Sir
I am a manufacturer of road signage and take contract from L&T for supplied of signage,sign board,gantry and cantilever foundation,erection and commissioning what rate of GST should be charged by us.please suggest.
Respected Sir,
I am civil contractor. In March 2022 i have 2 building repairing work. PWD department add 12 % GST on Bill. So please clarify…. I will now pay 12% gst or 18% ??
Thanks alot for advance for your perfect reply.
sir we are provided road contract service to main contractor who is providing service to government from Jan-22 rate is 12% or 18% please suggest.
Dear Sir,
I am govt civil contractor n take building works contract (only building construction) from several Dept’s in Karnataka.
What would plz let me rate of tax gst from Dept’s such as
I) PWD 2) PRED
3)KBJNL 4) Municipal Corporation 5) KSRTC
Also let me know diff in govt entity, authority n not profit making Dept’s.
With Regards
Ashok
2. Heading 9954 (Construction Services) (iv) 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;
The GST rate applicable is given as 12% for all.
Can you pl intimate the SAC code for this service
i constructed a compound wall for a person. what is rate of gst please clarify me.
Please clarify that the work contract services provided to the State university could be considered as supply to State government or not.
I am civil contractor in Military Engineering Services. Please tell me the GST rate 12% or 18%
Kamal ji ,pls confirm that whether MES is central government or government authority
If it is central government then rate would be 12 percent
Of it is government authority then rate would be 18 percent
I am civil contractor in Military Engineering Services. Please tell me the GST rate 12% or 18%
What is the current rate of GST for Contact of Labour Supply?
Sir I am government contractor works of works contract. But department has not give us gst and file gst R 7 return by depart ment 2 %deducted by us so please guide gst applicable to us or no
Pls do call me on 9163204190
Sir please guide I am government contractor government not give us gst , But 2 % gst deducted to us and department has fieled GSTR 7 Return so gst applicable or not
Please clarify the gst rate for PMGSY road works
12 percent
Hi,
Pradhan Mantri Gram Sadak Yojana(PMGSY)road work contractors. Please clarify the GST rate and we have sign off the project from 12%GST by the year 2020-2021..
Sir, on Raod Projects , it is 12% (Twelve Percent)
We are providing Civil Construction services of NBCC (India) Limited for making IPO Building Sector 14 Dwarka. please provide us suggestion for tax liability of GST .
Pls call me on 9163204190
Sir, if nbcc India is a govt entity ,rate is 18 percent . Pls once confirm whether nbcc India is government entity .
Amit Sir Please Help,
If a Main Contractor get a work from State Govt and then he allot that work to other Sub Contractor , in this case at what % rate the sub Contractor should be charged?? 18 r 12%.??
Hi, our firm is Chandigarh based, we are govt contractor, we do medical pipe line work. supply and fixing of machines, COMPRESSOR, electrical items like Geysers, May i know that what would be the gst rate.
sir we are doing work of pipeline of water for ladhak (u.T) govt. what gst rate 12% or 18 % from 1.1.2022
IS 18 % GST IS APPLICABLE ON WORK CONTRCT BEFORE 31.12.2021. PLZ CLARIFY.
WE ARE MAKING 2 OR 3 STORIED BUILDING ALONG WITH ELECTRICITY, SANITARY SYSTEM FULL COMPLETE AS RESIDENCE CUM OFFICE FOR ARMY. WHAT WILL BE THE TAX RATE IN GST I.E 1.1.2022
Sir we are providing and fixing of w metal beam crash barrier on road ..on sub contract basis..I am from punjab…and working in assam under govt project of road safety.. kindly tell me rate of gst
I am providing service to PWD department for construction of Skill institute. Please tell rate charged from 01.01.2022??
NAVDEEP JI
18 PER CENT AS IT IS OF CIVIL NATURE
we are sub contractors of gammon india ltd
what will be the rate of gst 12 or 18%
Sir,
Thanks for sharing this article.
from above this can be understood that all the services provided from Sub contractor to Main contractor will be charged at 18% from Jan 01.2022.
services provided directly to CG,SG,LA will be charged at 12%
Services provided to Govt. Entity will be at 18%
we have providing services to PWD then on what rate will have to charge GST. Please clarify on this matter.
Thanks in Advance
MA’M , kindly confirm your nature of business with PWD. if it is Road , Bridge etc then , existing rate of 12 % would continue in future bills as well.
thanks for reading
Sir We are providing External water supply and electric works in central command (Millitary engineering service) and charging bill inclusive GST@12%, now from 01.01.22 what rate we should charge for GST i.e 12% or 18%
As per notification 15/2021 CGST (Rate) the word “Union Territory or Local authority” Shall be subsisted. i.e. Any work done for Union Territory or Local authority covered in 18% instead of 12%. Kindly check the notification and do needful correction.
Pratik ji
You have not read the said notification rightly and mistaken grossly in interpretation of such notification .
The article is 💯 percent correct .
Pls read notification and interpret correctly.you are grossly mistaken .
No pratik ji .
I am Electrical Govt Contractor like CCTV, Fire Alarm, LAN, Intercom. Supply Erection Testing Commissioning GST Rate 12% or 18% from 01-01-2022
Sir, We work for Jal Shakti Vibhag Himachal pardesh, Worrk awarded to us on behalf of governor himachal pardesh. GST remain un changed (12%) or increased to 18%?.
Thanks
Sir We are Delhi Jal Board contractor rate applicable Previous Rate 12% Now?? please Suggest
Sir
We are providing Civil Repairs to existing buildings of Air Force Stations in south (Garrison Engineer) and charging bill inclusive GST@12%, now from 01.01.22 what rate we should charge for GST
i.e 12% or 18%
Daleep Kumar ji @18 percent
sir we are in road work and tunnel work and flyover work to NHAI . present rate GST Rate is 12%. from Jan-22 is it12% or 18% please suggest sir.
Suresh Ji 12%
sir,
A laboratory (chemistry lab, Physics lab, and computer lab) setting work for a school by a local authority whether this comes with in the purview of 12% as it is related to an educational Institution by a local authority .please advice
Good job Amit ji
pls correct rate mentioned at S.No.-4 for Govt. Auth. or Govt. Entitiy
Yes varinder ji
Item no vi & ix – Govt authority and govt entity -18 percent
Edited by taxguru team without my permission
And also serial number mentioned should be 3 and not 1 to 9
In case of any further clarification ,you can contact me on 9163204190
Yes virendra ji
Items no vi and ix – 18 percent for govt authority and govt entity .
Serial no should be 3 for all and 1to 9
Good job, and all the best