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

07 Oct 2025

India To Invest $37 Billion To Boost Petrochemical Capacity

India is set to become a major global player in the petrochemicals industry, driven by a planned capital expenditure of $37 billion (Rs 3.1 trillion) aimed at reducing import dependency and enhancing self-sufficiency, according to S&P Global Ratings.In its latest report titled “First China, Now India: Self-Sufficiency Goals Will Add To Petrochemicals Supply”, S&P said India’s large-scale capacity expansion—mirroring China’s earlier push—will likely intensify oversupply pressures in Asia’s petrochemical markets.Currently the world’s third-largest petrochemical consumer a..

Indian Railways Expands Global Exports Of Rail Equipment

Indian Railways has announced that it is rapidly emerging as a global exporter of railway equipment, including bogies, coaches, locomotives, and propulsion systems, under the government’s ‘Make in India, Make for the World’ initiative.According to an official statement, India’s railway products are now reaching over 16 international markets, reflecting the country’s growing capacity to design, develop, and deliver world-class rail solutions.Metro coaches have been exported to Australia and Canada; bogies to the United Kingdom, Saudi Arabia, France, and Australia; propulsion systems t..

RailTel Awards Rs 163 Million Contract To RTNS Technology

RailTel Corporation of India Limited (RailTel), a Mini Ratna Public Sector Undertaking, has awarded a domestic work order worth Rs 163 million to RTNS Technology Private Limited.The contract, issued on 30 September 2025, involves the supply and installation of equipment and related services for one of RailTel’s key customers. The project underscores RailTel’s commitment to advancing technology and communication infrastructure through collaboration with domestic system integrators.RTNS Technology Private Limited, an ISO-certified system integrator, provides comprehensive solutions for perim..