18 per cent to be levied on construction works

The Central Board of Excise and Customs has hiked the GST rate for the construction sector to 18 per cent from the previous 12 per cent, but has removed the land value parameter from the tax liability calculation. The board communicated that it has tweaked the tax rate and the mode of calculation. Under this, the construction of complexes, buildings and civil structures, including a complex or building intended for sale to a buyer, wholly or partly, will attract a GST rate of 18 per cent. However, GST will not be imposed on fully constructed properties, where a completion certificate has been issued by a competent authority. The GST Council had in May decided to levy 12 per cent GST on the construction of a complex, building, and civil structure or on the sale to a buyer, wholly or partly. The value of land had to be included in the amount on which the tax was calculated.