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

06 Apr 2026

InsideFPV Delivers ₹10 Crore Kamikaze Drone Order Under MoD’s EPR Route

InsideFPV, a Surat-based drone technology manufacturer, has successfully executed a ₹10 crore defence contract to supply indigenous kamikaze drones under the Ministry of Defence’s Emergency Procurement Route (EPR). The company completed the delivery of hundreds of FPV kamikaze drone platforms within a rapid two-month timeframe, highlighting its ability to meet urgent military procurement timelines.The supply orders were fulfilled under the emergency procurement mechanism, which is aimed at fast-tracking acquisitions for immediate operational needs. InsideFPV’s quick execution reflects it..

Vedanta Resources Secures Fitch Upgrade to ‘BB-’, Best Rating Since 2015

Vedanta Resources Limited (VRL), a global player in metals, oil & gas, critical minerals, power and technology, has received a credit rating upgrade from Fitch Ratings, marking its strongest bond rating in over a decade.Fitch has raised Vedanta Resources’ Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘BB-’ from ‘B+’, while maintaining a Stable Outlook. The agency also upgraded VRL’s senior unsecured rating, along with the ratings of US dollar-denominated bonds issued by Vedanta Resources Finance II Plc and guaranteed by VRL, to ‘BB-’.The upgrade represents Vedan..

NAREDCO NextGen NCR Chapter Launched

The NAREDCO NextGen NCR Chapter was recently launched at Excelerate 2026 in Mumbai, marking a key step towards integrating emerging real estate leaders from the National Capital Region with the national platform. The initiative aims to promote sustainable and responsible urban development through collaboration and knowledge exchange.The event brought together young developers, entrepreneurs, and professionals from across NCR, including Noida, Gurugram, Ghaziabad, Faridabad, Bhiwadi, and Meerut. Discussions focused on urban development, finance, sustainability, innovation, and policy, emphasisi..