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..!!!
GST rate for individual residential house.
Guest
Understanding GST for Residential House Construction: No GST on Pure Labor, 18% on Works Contract, No ITC for Exemptions. A forum participant inquired about the GST rate applicable to the construction of an individual residential house, specifically when hiring a civil engineer for a contract valued at 25 lakh, including labor and materials. Responses indicated that the construction of an individual residential house is generally exempt from GST. However, if only labor services are provided, there is no GST, whereas a works contract service incurs an 18% GST. It was also noted that Input Tax Credit (ITC) is not allowed for exempt services, and pure labor contracts related to specific government housing schemes are charged a nil GST rate. (AI Summary)