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of <h1>Karnataka Tax Dept Clarifies 18% GST Rate for Construction Services on Turnkey Projects for Government Entities.</h1> The circular from the Karnataka Department of Commercial Taxes clarifies the applicable GST rate for construction services provided to a government entity, specifically for projects like a ropeway on a turnkey basis. It states that such services do not qualify for the concessional 12% GST rate under entry No. 3(vi) of Notification (11/2017) because they are not predominantly for non-business purposes. Instead, these services fall under entry No. 3(xii) of the same notification, attracting an 18% GST rate. The circular emphasizes that this interpretation applies to projects not covered by other specified entries related to public infrastructure.
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