Karnataka AAR imposes 18% GST on affordable housing constructions

10 Aug 2021 CW Team

The Karnataka Authority of Advance Ruling (AAR) ruled that 18% of goods and services tax (GST) is payable on construction services for projects which qualify as affordable housing projects and are given the infrastructure status.

M/s Starworth Infrastructure and Construction Limited, the applicant is engaged in the civil works contracts business. Further, they have entered into a contract agreement with Provident Housing Limited and Puravankara Limited for the residential apartment projects construction.

The applicant is the main contractor to Ms Puravankara Limited and Ms Provident Housing Limited, who is developing the project with low-cost houses up to a carpet area of 60 sq m per unit and qualifies as an affordable housing project, and has been given infrastructure status vide Government of India (GoI) notification, in Ministry of Finance (MoF), Department of Economic Affairs (DEA) vide F.No. 13/6/2009-INF dated 30 March 2017.

The applicant has undertaken three projects, one from Ms Puravankara Limited in the name of Provident Parksquare and two projePark squares Provident Housing Limited in the name of provident neora and provident capella.

The applicant has asked for an advance ruling regarding whether the construction service provided by the applicant to Ms Provident Housing Limited under Provident Neora and Provident Capella project and to M/s Puravankara Limited under the project Provident ParkSquare, qualifies foPark square of the lower rate of Central goods and services tax (CGST) at the rate of 6% and State goods and service tax (SGST) at the rate 6%.

Image Source

Also read: Affordable housing: MRG World plans Rs 350 cr investment in Gurugram

Also read: PMAY-Urban: Govt hands over more than 37 lakh homes in two years

Infrastructure Urban

11 Mar 2026

India Expands Semiconductor Training To 500 Institutions

Under the Chips to Startups programme of the India Semiconductor Mission, the Union minister responsible for Railways, Information and Broadcasting, and Electronics and IT reported notable progress in talent development. He indicated that over the past four years substantial steps have been taken towards a 10-year target of training 85,000 engineers in semiconductor design. World-class EDA tools have been deployed in 315 academic institutions across the country to provide students with practical exposure to chip design. These EDA tools are supported by leading global firms and are accessible t..

Delhi Institutions Support India Semiconductor Mission

The Government of India has prioritised talent development through training, upskilling and workforce development under the Chips to Startups initiative of the India Semiconductor Mission, with officials noting progress in four years towards a 10-year target of training 85,000 engineers in semiconductor design. Electronic design automation tools provided by Synopsys, Cadence, Siemens, Renesas, Ansys and AMD have been deployed in 315 academic institutions, enabling students to gain practical chip design experience. Chips have been fabricated and tested at the Semiconductor Laboratory, Mohali, a..

NHA Announces Winners Of NHCX Hackathon At IIT Hyderabad

The National Health Authority (NHA) has concluded the NHCX Hackathon under the Ayushman Bharat Digital Mission (ABDM) to stimulate innovation around the National Health Claims Exchange (NHCX). The winning teams presented their solutions at the NHCX Innovation Meet held at IIT Hyderabad during a two-day event in March 2026 that also served as the hackathon grand finale. The hackathon itself ran from 22 to 28 February 2026 and aimed to accelerate paperless, transparent claims processing across India. The event was organised with a range of ecosystem partners, including the Insurance Regulatory a..