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GST RATE ON CONSTRUCTION service

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Trex Gaming_67

164 Points Posted on 20 September 2023

I'm a contractor.
i construct buildings, roads for govt and sometimes for private individual.
sometimes I provide only labour services, sometimes I provide labour service along with supply of material and sometimes I supply only material.

what is the GST rate to be charged by me in all the above scenarios.??

Replies (3)

Quick Summary

As a contractor, understanding GST on construction services is crucial, whether you're building for government or private clients. This discussion clarifies the GST rates applicable to different scenarios, including providing only labour, supplying materials, or a combination of both. Generally, an 18% GST rate applies to construction services, particularly under works contract tax provisions.

Rama chary Rachakonda

Master in Accounts & high court Advocate

7021 Points Posted on 20 September 2023

18%

Generally, the GST rate on construction services is 18%.

sabyasachi mukherjee

Profession

19978 Points Posted on 20 September 2023

Is it registered under works contract tax act.

Aashok Kumar Sharma

Finance/Compliance Consultant

75646 Points Posted on 08 November 2026

Construction works contract rates:
• Works contracts for government (Central, State, local authority, or governmental authority) for specified works: 12% (e.g. historical monuments, canals, dams, pipelines, water treatment, residential complexes for government use), after the 2022 changes (some entries removed for "government entities").
• Roads, bridges, railways (for general public use): 12%.
• Private building construction (commercial): 18%.
• Residential construction for individuals (works contract): 18%, unless affordable housing or single residential unit (pure labour exempt).
• Earthwork constituting more than 75% of the contract for government: 5%.