Question

My client has construction work for single residential housing (bunglow) with material and labour work.

So what is the GST rate on construction of single residential housing (bunglow) or any kind of individual house before 31.03.2019 and after 31.03.2019.

Please clerify with relevant notification if any.
 

Answer

The GST rate on construction services is provided in Notification No. 11/2017 Central tax (Rate). the relevant portion of same is reproduced as follows:

v ) Composite supply of works contract as defined in   clause  (119)  of section 2 of  the  Central Goods  and   Services Tax Act, 2017,[other than that covered by items (i), (ia), (ib), (ic), (id), (ie) and (if) above]  supplied   by way of   construction,  erection, commissioning, or  installation of original works pertaining to,-

(a) railways, including monorail and metro; 
(b) a single residential unit otherwise than as a part of a residential complex; 
(c) 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;
 (d) low cost houses up to a carpet area 60 square metres per house in a housing project approved by the competent authority under -
(1) the 'Affordable Housing in Partnership' component of the Housing for All (Urban) Mission /Pradhan Mantri Awas Yojana; 
(2) any housing scheme of a State Government ;

(da) 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 vide notification of Government of India, in Ministry of Finance, Department of Economic Affairs vide F. No. 13/6/2009-INF, dated the 30th March,2017

(e) post - harvest storage infrastructure for agricultural produce including a cold storage for such purposes; or 
(f) mechanised food grain handling system, machinery or equipment for units processing agricultural produce as food stuff excluding alcoholic beverages.
 

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Therefore the rate on construction of single residential unit (bungalow) is 12% (CGST 6% and SGST 6%). (Reply dt 31/05/2019)