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