Services

GST rate on Works contract (construction)

Works contract construction services are taxed at 18% GST with full ITC.

GST rate

18%

SAC code

9954

Intra-state split

9% CGST + 9% SGST

The GST rate on works contract (construction) in India is 18% under GST 2.0, classified under SAC code 9954. For an intra-state sale this is split as 9% CGST and 9% SGST; for an inter-state sale it is charged as a single 18% IGST.

Note: Affordable housing under PMAY may have concessional rates.

This is a commonly-applicable rate for quick reference under GST 2.0 (effective 22 September 2025). Rates and classifications can change with GST Council notifications — verify the exact rate on the official GST portal before issuing tax invoices.

Calculate 18% GSTAll GST rates

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