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 Transport

01 Jun 2026

MMRDA advances 250 m on Orange Gate–Marine Drive tunnel

The Mumbai Metropolitan Region Development Authority (MMRDA) has completed 250 m of underground tunnelling for the Orange Gate–Marine Drive Urban Road Tunnel using India’s largest slurry shield tunnel boring machine (TBM) deployed for an urban road project.The project involves twin tunnels extending over 7 km beneath critical transport corridors, including Central Railway, Western Railway and Metro Line 3. The work requires high-precision engineering to navigate densely developed urban infrastructure.Once completed, the tunnel is expected to reduce travel time between Orange Gate and Marin..

Hindustan Zinc Pays Rs 188.46 Billion in FY26

Hindustan Zinc contributed Rs 188.46 billion to the public exchequer in FY 2025-26, according to its 9th Tax Transparency Report. The contribution, equivalent to 46 per cent of the company’s revenue, included direct and indirect taxes, government royalties, dividends to the Government of India, withholding taxes and other statutory levies.The company’s five-year cumulative contribution to the exchequer stood at Rs 915.72 billion. In FY26, Hindustan Zinc reported revenue of Rs 408.44 billion, EBITDA of Rs 221.62 billion and profit after tax of Rs 138.32 billion. It also achieved its highest..

World of Concrete India 2026 Opens in Mumbai

Informa Markets in India will host the 12th edition of World of Concrete India 2026 from 3–5 June 2026 at the Bombay Exhibition Centre, Mumbai. The specialised B2B exhibition will bring together manufacturers, suppliers, contractors, developers, architects, consultants, infrastructure companies, project leaders and government stakeholders.The event is expected to feature over 350 brands and more than 18,000 trade professionals. It will cover concrete and cement, dry mortar, precast technologies, formwork, construction chemicals, industrial and commercial flooring, scaffolding, safety solutio..