When it comes to GST (Goods and Services Tax) on construction services provided by a contractor, there are different rates applicable depending on the nature of the contract. The rates specified in the link you provided (12% and 18%) were valid at the time of the article's publication, but please note that GST rates can be subject to change. It's important to refer to the latest official notifications and consult with a tax professional to determine the current applicable rates.
Here are some key points to consider:
Composition Scheme: Under the composition scheme, the contractor can opt for a lower GST rate (currently 1% for construction of residential properties and 5% for other construction services) but will not be eligible for input tax credit (ITC).
Non-Composition Scheme: If the contractor does not opt for the composition scheme, the GST rate would depend on the nature of the contract. As per the current GST rates, construction services for residential properties, such as houses, flats, etc., are taxed at 5% (with ITC available). On the other hand, construction services for other than residential properties are taxed at 18% (with ITC available).
Value of Goods: If the value of goods (such as materials, fittings, etc.) supplied by the contractor exceeds 25% of the total contract value, then the applicable GST rate would be 18% (with ITC available), regardless of whether it is a residential or non-residential property.
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