GST rates for services vide Notification No. 11/2017-Central Tax (Rate), G.S.R. 690(E) dated 28-06-2017 and last amended by Notification No. 03/2022-Central Tax (Rate), G.S.R. 541(E) dated 13-07-2022.
CG notifies the GST central tax, on the intra-State supply of services of description as specified below. You may refer the provision of section 9(1), 9(3) and 9(4), 11(1), 15(5), 16(1) and section 148 of the Central Goods and Services Tax Act, 2017.
Goods and Services Tax (GST) Rates for Services
The GST Council has broadly approved the GST rates for services at Nil, 1.5, 5, 7.5, 12, 18 and 28 percent as listed below:
Heading 9954 (Construction services)
GST Rate 0.75%
(i) Construction of affordable residential apartments by a promoter in a Residential Real Estate Project (herein after referred to as RREP) which commences on or after 1st April, 2019 or in an ongoing RREP in respect of which the promoter has not exercised option to pay central tax on construction of apartments at the rates as specified for item (ie) or (if) below, as the case may be, in the manner prescribed therein, intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier.
(ic) Construction of affordable residential apartments by a promoter in a Real Estate Project (herein after referred to as REP) other than RREP, which commences on or after 1st April, 2019 or in an ongoing REP other than RREP in respect of which the promoter has not exercised option to pay central tax on construction of apartments at the rates as specified for item (ie) or (if) below, as the case may be, in the manner prescribed therein, intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier.
GST Rate 2.5%
(xi) Services by way of house-keeping, such as plumbing, carpentering, etc. where the person supplying such service through electronic commerce operator is not liable for registration under sub-section (1) of section 22 of the Central Goods and Services Tax Act, 2017.
GST Rate 3.75%
(ia) Construction of residential apartments other than affordable residential apartments by a promoter in an RREP which commences on or after 1st April, 2019 or in an ongoing RREP in respect of which the promoter has not exercised option to pay central tax on construction of apartments at the rates as specified for item (ie) or (if) below, as the case may be, in the manner prescribed therein, intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier.
(ib) Construction of commercial apartments (shops, offices, godowns etc.) by a promoter in an RREP which commences on or after 1st April, 2019 or in an ongoing RREP in respect of which the promoter has not exercised option to pay central tax on construction of apartments at the rates as specified for item (ie) or (if) below, as the case may be, in the manner prescribed therein, intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier.
(id) Construction of residential apartments other than affordable residential apartments by a promoter in a REP other than a RREP which commences on or after 1st April, 2019 or in an ongoing REP other than RREP in respect of which the promoter has not exercised option to pay central tax on construction of apartments at the rates as specified for item (ie) or (if) below, as the case may be, in the manner prescribed therein, intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier.
GST Rate 6%
(ie) Construction of an apartment in an ongoing project under any of the schemes specified in sub-item (b), subitem (c), sub-item (d), sub-item (da) and sub-item (db) of item (iv); sub-item (b), sub-item (c), sub-item (d) and sub-item (da) of item (v); and sub-item (c) of item (vi), against serial number 3 of the Table, in respect of which the promoter has exercised option to pay central tax on construction of apartments at the rates as specified for this item.
(vii) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, involving predominantly earth work (that is, constituting more than 75 per cent. of the value of the works contract) provided to the Central Government, State Government, Union territory or a local authority.
(viii) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017 and associated services, in respect of offshore works contract relating to oil and gas exploration and production (E&P) in the offshore area beyond 12 nautical miles from the nearest point of the appropriate base line.
(x) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017 provided by a subcontractor to the main contractor providing services specified in item (vii) above to the Central Government, State Government, Union territory or a local authority.
GST Rate 9%
(if) Construction of a complex, building, civil structure or a part thereof, including,-
- (i) commercial apartments (shops, offices, godowns etc.) by a promoter in a REP other than RREP,
- (ii) residential apartments in an ongoing project, other than affordable residential apartments, in respect of which the promoter has exercised option to pay central tax on construction of apartments at the rates as specified for this item in the manner prescribed herein,
but excluding supply by way of services specified at items (i), (ia), (ib), (ic), (id) and (ie) above intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier.
Explanation: For the removal of doubt, it is hereby clarified that, supply by way of services specified at items (i), (ia), (ib), (ic), (id) and (ie) in column (3) shall attract central tax prescribed against them in column (4) subject to conditions specified against them in column (5) and shall not be levied at the rate as specified under this entry.
(xii) Construction services other than (i), (ia), (ib), (ic), (id), (ie), (if), (vii), (viii), (x) and (xi) above.
Explanation: For the removal of doubt, it is hereby clarified that, supply by way of services specified at items (i), (ia), (ib), (ic), (id), (ie) and (if) in column (3) shall attract central tax prescribed against them in column (4) subject to conditions specified against them in column (5) and shall not be levied at the rate as specified under this entry.
Heading 9961 GST Rate 9%
Services in wholesale trade.
Explanation-This service does not include sale or purchase of goods but includes:
– Services of commission agents, commodity brokers, and auctioneers and all other traders who negotiate whole sale commercial transactions between buyers and sellers, for a fee or commission’
– Services of electronic whole sale agents and brokers,
– Services of whole sale auctioning houses.
Heading 9962 GST Rate 9%
Services in retail trade.
Explanation: This service does not include sale or purchase of goods.
Heading 9963 (Accommodation, food and beverage services)
GST Rate 6%
(i) Supply of ‘hotel accommodation’ having value of supply of a unit of accommodation less than or equal to seven thousand five hundred rupees per unit per day or equivalent.
GST Rate 2.5%
(ii) Supply of ‘restaurant service’ other than at ‘specified premises’.
(iii) Supply of goods, being food or any other article for human consumption or any drink, by the Indian Railways or Indian Railways Catering and Tourism Corporation Ltd. or their licensees, whether in trains or at platforms.
(iv) Supply of ‘outdoor catering’, at premises other than ‘specified premises’ provided by any person other than-
(a) suppliers providing ‘hotel accommodation’ at ‘specified premises’, or
(b) suppliers located in ‘specified premises’.
(v) Composite supply of ‘outdoor catering’ together with renting of premises (including hotel, convention center, club, pandal, shamiana or any other place, specially arranged for organising a function) at premises other than ‘specified premises’ provided by any person other than-
(a) suppliers providing ‘hotel accommodation’ at ‘specified premises’, or
(b) suppliers located in ‘specified premises’.
GST Rate 9%
(vi) Accommodation, food and beverage services other than (i) to (v) above
Explanation:
(a) For the removal of doubt, it is hereby clarified that, supplies covered by items (ii), (iii), (iv) and (v) in column (3) shall attract central tax prescribed against them in column (4) subject to conditions specified against them in column (5), which is a mandatory rate and shall not be levied at the rate as specified under this entry.
(b) This entry covers supply of ‘restaurant service’ at ‘specified premises’.
(c) This entry covers supply of ‘hotel accommodation’ having value of supply of a unit of accommodation above seven thousand five hundred rupees per unit per day or equivalent.
(d) This entry covers supply of ‘outdoor catering’, provided by suppliers providing ‘hotel accommodation’ at ‘specified premises’, or suppliers located in ‘specified premises’.
(e) This entry covers composite supply of ‘outdoor catering’ together with renting of premises (including hotel, convention center, club, pandal, shamiana or any other place, specially arranged for organising a function) provided by suppliers providing ‘hotel accommodation’ at ‘specified premises’, or suppliers located in ‘specified premises’.
Heading 9964 (Passenger transport services)
GST Rate 2.5%
(i) Transport of passengers, with or without accompanied belongings, by rail in first class or air conditioned coach.
(ii) Transport of passengers, with or without accompanied belongings by-
- (a) air conditioned contract carriage other than motorcab;
- (b) air conditioned stage carriage;
- (c) radio taxi.
Explanation.-
(a) “contract carriage” has the meaning assigned to it in clause (7) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988);
(b) “stage carriage” has the meaning assigned to it in clause (40) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988) ;
(c) “radio taxi” means a taxi including a radio cab, by whatever name called, which is in two-way radio communication with a central control office and is enabled for tracking using Global Positioning System (GPS) or General Packet Radio Service (GPRS).
(iii) Transport of passengers, with or without accompanied belongings, by air in economy class.
(iv) Transport of passengers, with or without accompanied belongings, by air, embarking from or terminating in a Regional Connectivity Scheme Airport, as notified by the Ministry of Civil Aviation.
(iva) Transportation of passengers, with or without accompanied baggage, by air, by non-scheduled air transport service or charter operations, engaged by specified organisations in respect of religious pilgrimage facilitated by the Government of India, under bilateral arrangement.
(vi) Transport of passengers by any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient.
(via) Transport of passengers, with or without accompanied belongings, by ropeways.
GST Rate 6%
(v) Transport of passengers by air, with or without accompanied belongings, in other than economy class.
GST Rate 9%
(vii) Passenger transport services other than (i), (ii), (iii), (iv), (iva), (v), (vi) and (via) above.
Heading 9965 (Goods transport services)
GST Rate 2.5%
(i) Transport of goods by rail (other than services specified at item no. (iv)).
(ii) Transport of goods in a vessel.
(iii) Services of Goods Transport Agency (GTA) in relation to transportation of goods (including used house hold goods for personal use) supplied by a GTA where,-
(a) GTA does not exercise the option to itself pay GST on the services supplied by it;
(b) GTA exercises the option to itself pay GST on services supplied by it. [GST Rate 2.5% or 6%].
(v) Transportation of natural gas, petroleum crude, motor spirit (commonly known as petrol), high speed diesel or aviation turbine fuel through pipeline.
(via) Transport of goods by ropeways.
GST Rate 6%
(iv) Transport of goods in containers by rail by any person other than Indian Railways.
(vi) Multimodal transportation of goods.
Explanation 1:
(a) “multimodal transportation” means carriage of goods, by at least two different modes of transport from the place of acceptance of goods to the place of delivery of goods by a multimodal transporter;
(b) “mode of transport” means carriage of goods by road, air, rail, inland waterways or sea;
(c) “multimodal transporter” means a person who,-
- (A) enters into a contract under which he undertakes to perform multimodal transportation against freight; and
- (B) acts as principal, and not as an agent either of the consignor, or consignee or of the carrier participating in the multimodal transportation and who assumes responsibility for the performance of the said contract.
Explanation 2: Nothing contained in this item shall apply to supply of a service other than by way of transport of goods from a place in India to another place in India.
Heading 9966 (Rental services of transport vehicles with operators)
GST Rate 2.5%
(i) Renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient.
(ii) Time charter of vessels for transport of goods.
GST Rate 6%
(ia) Renting of goods carriage where the cost of fuel is included in the consideration charged from the service recipient.
GST Rate 9%
(iii) Rental services of transport vehicles with operators, other than (i), (ia) and (ii) above.
Heading 9967 (Supporting services in transport)
GST Rate 9%
Supporting services in transport.
Explanation: This entry does not include goods transport service involving Goods Transport Agency (GTA) service, which falls under Heading 9965.
For more detail, please read GST Book in PDF format updated on monthly basis.