Gst on const. residential house

This discussion clarifies the Goods and Services Tax (GST) applicable to the construction of residential houses when a contractor supplies both materials and labour. The applicable GST rate is 18%. While the works contractor can claim Input Tax Credit (ITC) on their purchases, the house owner cannot claim ITC for the construction of their residence, as it's specifically disallowed under Section 17(5) of the CGST Act.