Works Contract under GST

S. No.

Description

Applicable GST Rate

1.

Composite supply of works contract supplied to the Central Government, State Government, Union territory, a local authority, a Governmental Authority or a Government Entity by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of—

• a historical monument, archaeological site or remains of national importance, archaeological excavation, or antiquity specified under the Ancient Monuments and Archaeological Sites and Remains Act, 1958 (24 of 1958);

• canal, dam or other irrigation works;

• pipeline, conduit or plant for water supply, water treatment, sewerage treatment or disposal

• a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession

• a structure meant predominantly for use as an educational, a clinical, or  an art or cultural establishment

• a residential complex predominantly meant for self-use or the use of their employees or other persons specified in paragraph 3 of the Schedule III of the CGST Act, 2017 such as Members of Parliament, Panchayats, other local authorities, etc.

Note:-This will also include composite supply of works contract provided by a sub-contractor to the main contractor in respect of abovementioned services to the Central Government, State Government, Union territory, a local authority, a Governmental Authority or a Government Entity.

12%

2.

Composite supply of works contract supplied by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of—

i) a road, bridge, tunnel, or terminal for road transportation for use by general public

ii) a civil structure or any other original works pertaining to a scheme under Jawaharlal Nehru National Urban Renewal Mission or Rajiv Awas Yojana

iii) a civil structure or any other original works pertaining to the “In-situ redevelopment of existing slums using land as a resource, under the Housing for All (Urban) Mission/ Pradhan Mantri Awas Yojana (Urban)

iv) a civil structure or any other original works pertaining to the “Beneficiary led individual house construction/enhancement” under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana

v) a civil structure or any other original works pertaining to the “Economically Weaker Section (EWS) houses” constructed under the Affordable Housing in partnership by State or Union territory or local authority or urban development authority under the Housing for All (Urban) Mission/ Pradhan Mantri Awas Yojana (Urban)

vi) a civil structure or any other original works pertaining to the “houses constructed or acquired under the Credit Linked Subsidy Scheme for Economically Weaker Section (EWS)/Lower Income Group (LIG)/Middle Income Group-1 (MIG-1)/Middle Income Group-2 (MIG-2)” under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana (Urban)

vii) a pollution control or effluent treatment plant, except located as a part of a factory; or

viii) a structure meant for funeral, burial or cremation of deceased

ix) a building owned by an entity registered under section 12AA of the Income-tax Act, 1961 (43 of 1961), which is used for carrying out the activities of providing, centralised cooking or distribution, for mid-day meals under the mid-day meal scheme sponsored by the Central Government, State Government, Union territory or local authorities

12%

3.

Composite supply of works contract supplied by way of construction, erection, commissioning, or installation of original works pertaining to-

railways, including monorail and metro

i) a single residential unit otherwise than as a part of a residential complex

ii) low-cost houses up to a carpet area of 60 square metres per house in a housing project approved by competent authority empowered under the ‘Scheme of Affordable Housing in Partnership’ framed by the Ministry of Housing and Urban Poverty Alleviation, Government of India

iii) low cost houses up to a carpet area of 60 square metres per house in a housing project approved by the competent authority under—

a) the “Affordable Housing in Partnership” component of the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana

b) any housing scheme of a State Government

iv) low-cost houses up to a carpet area of 60 square metres per house in an affordable housing project which has been given infrastructure status

v) post-harvest storage infrastructure for agricultural produce including a cold storage for such purposes

vi) mechanized food grain handling system, machinery or equipment for units processing agricultural produce as food stuff excluding alcoholic beverages

12%

4.

Composite supply of works contract involving predominantly earth work (constituting more than 75 per cent of the value of the works contract) provided to the Central Government, State Government, Union territory, local authority, a Govern-mental Authority or a Government Entity. 

Note:-This will also include composite supply of works contract provided by a sub-contractor to the main contractor in respect of abovementioned services to the Central Government, State Government, Union territory, a local authority, a Governmental Authority or a Government Entity.

5%

5.

Composite supply of works contract and associated services, in respect of offshore works contract relating to oil and gas exploration and production (E&P) in the offshore area beyond 12 nautical miles from the nearest point of the appropriate base line.

12%

6.

Composite supply of works contract supplied by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of affordable residential apartments in a project which commences on or after 1st April, 2019, or in an ongoing project in respect of which the promoter has not exercised option to pay central tax on construction of apartments at the rates of 12% or 18%, as the case may be.

12%