GST rate for individual residential house.

[Guest]

Dear Sir can you please provide me clarification on GST rate for providing service to build only individual residential house (not including land).
Case- I owned piece of land and I want to construct house over there so i hired the civil engineer for the same. Contract value is 25 lakh for building house including labor and material. So what will be the GST rate levied by civil engineer for providing the service.
What will be the GST rate if contract is consist of providing only labour servies(not material)??
Thank You..!!!

[KASTURI SETHI]

Construction of individual residential house is exempted from GST.

[Guest]

First of all Thank you sir. I'm little confused about the same. If civil engineer issues the invoice to customer then in which section it is exempt?? And what will be consequences of the GST paid by the civil engineer on purchase of the material purchased for the residential house.

[KASTURI SETHI]

ITC is not allowed in view of exempted service. Otherwise also virtually ITC is not permitted in construction service.

[Himansu Sekhar]

If it is pure supply of labour , then no GST. If the person carries out Works contract services, GST at the rate 18%.

[Rajagopalan Ranganathan]

Sir,

Services provided by way of pure labour contracts of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of a civil structure or any other original works pertaining to the beneficiary-led individual house construction or enhancement under the Housing for All (Urban) Mission or Pradhan Mantri Awas Yojana. is chargeable to Nil rate of GST vide Sl. No. 10 of Notification No. 12/2017- Central Tax (Rate) dated 28.6.2017 as amended.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of the experts.

[Ganeshan Kalyani]

It is exempt.

AI Summary

GST exemption for individual residential house construction: pure labour attracts nil rate, works contract services remain taxable and ITC restricted. Construction of an individual residential house is exempt and may attract nil-rate treatment for beneficiary-led individual house construction; pure labour supplies for such construction are nil-rated, whereas works contract services involving materials are taxable. Input tax credit is not available for exempt construction services, so suppliers performing exempt house construction cannot claim ITC on inputs used for those services. Proper classification of the contract as pure labour or works contract determines GST liability and ITC consequences.