Meaning of Specialized Construction Services: Specialized Construction Services means services related to parts of buildings or civil engineering works rather than the complete construction Services under GST Scenario. These following services are classified as ‘Specialized Construction Services’ under GST Scenario.
1. Services involving repair, alterations, additions, replacements, renovation, maintenance or remodeling of the buildings ,
2. Demolition services,
3. Site formation and clearance services,
4. Excavating and earth moving services,
5. Water well drilling and septic system installation services,
6. Other Site Preparation Services ne.ec..
7. Services involving repair, alterations, additions, replacements, renovation, maintenance or remodeling of the site preparations ,
8. Glazing Services,
9. Plastering Services,
10. Painting Services, Floor and Wall tilling services,
11. Other floor laying, wall covering and wall papering services,
12. Joinery and carpentry services, Fencing and railing services,
13. Other building completion and finishing services n.e.c
14. Services n.e.c .involving repair, alterations, additions, replacements, maintenance of the works covered above.
1. Services involving repair, alterations, additions, replacements, renovation, maintenance or remodeling of the buildings :Services involving repair, alterations, additions, replacements, renovation, maintenance or remodeling of the buildings means involving repair, alternations, additions , replacements , renovation, maintenance or remodeling of the buildings . Services Account Code is 995419 of the above specialized services as per GST Law.
2. Demolition services: This services involves that (i).wrecking and demolition services of building and other structures, (ii).and wrecking and demolition services of streets and highways. Services Account Code is 995431 of this services as per GST Law.
3. Site formation and clearance services: The services involves that :
(1) Preparation services of lands , including agricultural lands,
(2) Preparation services to make sites ready for subsequent construction work including blasting and rock removal work services,
(3) Site clearance including clearance undergrowth,
(4) Soil stabilization,
(5) Test drilling and boring and core extraction services for construction, geophysical , geological and similar purpose,
(6) Horizontal drilling for the passage of cables or drainpipes,
(7) Digging of trenches for site drainage, draining of land etc.,
The Service Code for the above services is 995432 as per GST Act,2017.
4. Excavating and earth moving services: The below services are considered as supply of services as excavating and earth moving services. They are:-
(1) Large scale earth work, excavation, sloping and earth moving services involving making of embankments or cuttings, prior to highway construction (roads motorways, railways etc.,).
(2) Digging of trenches , for utilities, urban drainage, various road works, etc.,
(3) Digging of conventional ditches for various constructions,
(4) Land recreation work services,
(5) Contaminated topsoil stripping work services,
(6) Other excavating and earth moving work services.
The Service Account code for the above services is 995433 as per GST Act,2017.
5. Water well drilling and septic system installation services: The following services are treated as water well drilling and septic system installation services:-
(1) Special trade construction services involving drilling or digging water wells installation services of septic systems, including aerobic septic systems, evaporation-transpiration (ET) septic systems, greywater systems, holding tank septic systems, pressure dosing septic system, septic disinfection systems, chemical, composting, incinerating and waterless toilets,
(2) Construction services of leach fields or drain fields.
The Service Account Code for the above services is 995434 as per GST Act,2017.
6. Other Site Preparation Services n.e.c.: This service involves that other services not elsewhere specially classified and Service Account Code is 995435 as per GST Law,2017.
7. Services involving repair, alterations, additions, replacements, renovation, maintenance or remodeling of the site preparations: Services involving repair, alterations, additions, replacements, renovation, maintenance or remodeling of the site preparations treated as services and service accounting code is 995439 as per GST Law,2017.
8. Glazing services of building completion and finishing services: The below services are treated as Glazing services as per GST Law,2017:-
(i) Installation services of glass cladding, mirror walls and other glass products,
(ii) Closed-in-work, such as window glass installation work services.
Service Accounting Code for the above services is 995471 as per GST Law,2017.
9. Plastering services: The following services are treating as supply of Plastering services as per GST Law,2017, They are :-
(i) Construction services of interior and exterior plaster or stucco and of lathing materials,
(ii) Dry walling services involving the installation of wallboard, generally gypsum work.
The service accounting code is 995472 to the above services as per GST Law,2017.
10. Painting Services: The below services are treated as Painting Services under GSt Law,2017:
(i) Painting services of building interiors and similar services (i.e. application of coating lacquer etc.,),
(ii) Painting services of building exteriors (principally for protection),
(iii) Painting services of railings, gratings, doors and windows frames of buildings etc.,
(iv) Painting services of other engineering structures, and
(v) Painting removal services etc.,
The Services Accounting Code for the above services is 995473 as per GST Law,2017.
11. Floor and wall tilling services: The below services are treated as supply of services under Floor and wall tilling services under GST Law,2017. These services are:-
(i) Construction services involving the laying or setting of ceramic, concrete or stone wall tiles and flagstones inside and outside of buildings and other structures,
(ii) Decorative covering of exterior walls of building with ceramic materials, stone, brick etc.,
Services Accounting Code for the above services is 995474 as per GST Law,2017.
15. Other floor laying, wall covering and wall papering services: These following services are treated as supply of other floor laying wall covering and wall papering services as per GST Law,2017. They are:-
(i) Laying of carpeting , linoleum and other flexible floor coverings, related finishing services,
(ii) Laying services of wood floors and floors coverings including parquet and other wood flooring, related finishing services such as sanding, wax polishing, sealing etc.,
(iii) Hanging services of paper and other flexibe wall coverings , wall paper removal services etc.,
The Service Account Code for the above services is 995475 as per GST Law,2017.
16. Joinery and carpentry services: These following services are treated as supply of services of Joinery and carpentry services as per GST Law,2017,.They are:-
(i) Installation services of door and window frames and of doors , windows , shutters, slatted shutters garage doors etc made any kind of material,
(ii) Armouring of outside does and installation services f armoured doors,
(iii) Installation services of fire doors,
(iv) Installation service of movable partitions and false ceiling on metallic structures,
(v) Installation services of verandas and conservatories for private houses,
(vi) Installation services involving carpentry and joinery work with materials other than metals,
(vii) Installation services of interior staircases, construction of wall cupboards, installation services of fitted kitchen units,
(viii) Installation services of clapboard, paneling etc.
(ix) Installation services of standard or custom fabricated sheet metal components,
(x) Installation services of decorative iron or steel work or o ornamental or architectural metal work,
(xi) Installation services of grilles covering radiators.
The service Accounting Code for the above services is 995476 as per GST Law,2017.
17. Fencing and railing Services: The below services are treated as supply of services of Fencing and railing services under GST Law,2017. They are:-
(i) Installation services of fences, railings and similar enclosures. The fenes may be of different materials (wire, wood, steel, fibre glass) and may be used at various sites ( courts, playgrounds, residential properties or industrial premises),
(ii) Installation services of metal fire escape staircases.
The service accounting code is 995477 of the above services as per GST Law,2017.
18. Other Building completion and finishing services n.e.c.: The below services are treated as supply of services of Other building completion and finishing services under GST Law,2017. They are:-
(i) Cleaning of outer walls by steam cleaning or sandblasting,
(ii) Acoustic services involving the application of acoustic panels, tiles and other materials to interior wall and ceilings,
(iii) Construction service of poured-in-place terrazzo and interior marble, granite or slate work,
(iv) General repair and maintenance services,
(v) Building completion and finishing services n.e.c.
The Service Accounting Code to the above services is 995478 as per GSt Law,2017.
19. Services n.e.c. invoving repair, alterations, additions, replacements, maintenance of the works covered above: This services not elsewhere specially classified, involving repair , alterations, additions, replacements , maintenance of the works covered above. The service account code for the above services is 995479 under GST Law,2017.
Applicable Tax Rate under GST Law, 2017:
The rate of tax for the above specialized construction services is @18% under GST Law,2017.
Requirement of Registration: Requirement of registration under GST Law,2017:
As per Section 22 (1) of CGST Act,2017 every supplier shall be liable to take registration in every State or UT from where he makes a taxable supply of goods /or services ,if his aggregate turnover in a financial year exceeds threshold limit of Rs.20 Lakhs or 10 Lakhs in Easter States.
Example for aggregate turnover:
(i).If any taxable person (PAN Based) is having business turnover Rs.15 Lakhs and Rs.6 lakhs rental income on immovable property liable to to take GST registration.
(ii)If any taxable person (PAN Based)is having tax business turnover Rs 13 Lakhs and Rs.6 Lakhs rental income on immovable property not require to take registration (Rs.13 plus Rs. 6 lakhs = 19 Lakhs ,no obligation to take registration.
(iii).Is any taxable person (PAN Based) is having Rs.25 Lakhs business turnover and such business in “Individual Status “ as per Individual PAN Based he has to take registration for such business and income from immovable property belongs to (HUF PAN BASED) and turnover on immovable property of Rs.6 lakhs, there is no obligation to take GST registration under HUF capacity.
Input Tax Credit :
Conditions for claiming of Input Tax Credit by the service provider: As per section
17(5) of the GST Act,2017, for the following procurements, he is not eligible for input tax credit, even if used in the course or furtherance of business.
(a). Works contract services when supplied for construction of immovable property, other than plant and machinery.
(b). Goods or Services or both received by a taxable person for construction of an immovable property on his own account , other than plant and machinery, even used in the course or furtherance of business. He is eligible to claim ITC on repairs and maintenance to building or immovable property if the same have not been capitalized in the books of account.
Reverse Charge Mechanism: Sec.9(3) and 9(4) of CGST Law is applicable for the above Specialized Construction Services.
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