This discussion clarifies GST rates for construction-related services. Supplying sand alone is subject to a 5% GST rate. However, construction activities, including materials like cement and TMT bars, are considered works contracts and attract an 18% GST rate for registered dealers. For unregistered dealers, cement attracts a 28% GST on a reverse charge basis.
17 January 2020
Construction activity is a works contract under GST as per Sec 2(119) of CGST Act. Applicable GST@18%. Supply of sand alone attract GST@5% (HSN: 2505)