GST rate on supply of works contract of single residential unit

This discussion clarifies the Goods and Services Tax (GST) rate applicable to works contracts for constructing a single residential unit, encompassing both labour and materials. The standard GST rate is 18%, however, for affordable housing projects, a reduced rate of 12% applies. The relevant Service Accounting Code (SAC) for single residential units is 9954, with the applicable GST rate being 12%.