*Works Contract to become cheaper* *GST rate slashed to 12% from 18% on construction services provided to Govt or other authorities*
AT the 21st meeting the GST Council recommended, to reduce tax rate from 18% to 12% on several services provided to the Governments, a local authority or a government authority by way of *construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of* –
(a) A civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession;
(b) A structure meant predominantly for use as (i) an educational, (ii) a clinical, or(iii) an art or cultural establishment; or
(c) a residential complex predominantly meant for self-use or the use of their employees or other persons specified in paragraph 3 of the Schedule III of the CGST Act, 2017 (namely, MPs/Members of State Legislatures, Panchayats, Municipalities, other local authorities, persons holding constitutional posts, chairperson/member/director in a body established by Central Government, State Government or local authorities etc.).
- to exempt services by way of admission to FIFA U-17 Football World Cup- 2017 events from GST.