GST RATE ON BUILDING CONSTRUCTION WORK ORDER

This discussion clarifies the Goods and Services Tax (GST) applicable to building construction and civil contract works. For residential apartments, the effective rate is 1% for affordable housing and 5% for others, both without input tax credit. Commercial construction attracts an 18% GST rate with input tax credit available. The specific GST rate for works contracts can vary depending on the nature of the service and the recipient.