Notification No. 24/2017 - Central Tax (Rate) Explained

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Notification No. 24/2017 - Central Tax (Rate): Seeks to amend notification No. 11/2017-CT(R) to reduce CGST rate on specified supplies of Works Contract Services.

GST: [TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

G.S.R (E).- In exercise of the powers conferred by sub-section (1) of section 9, sub- section (1) of section 11,sub-section (5) of section 15 and sub-section (1) of section 16 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, and on being satisfied that it is necessary in the public interest so to do,

hereby makes the following amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.11/2017- Central Tax (Rate), dated the 28^thJune, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 690(E), dated the 28^thJune, 2017, namely:-

In the said notification, in the Table, against serial number 3, for item (vi) in column (3) and the entries relating thereto, in columns (3), (4) and (5), the following shall be substituted, namely:-

(3)	(4)	(5)
“(vi)Services provided to the Central Government, State Government, Union Territory, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of – a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession; a structure meant predominantly for use as (i) an educational, (ii) a clinical, or(iii) an art or cultural establishment; or a residential complex predominantly meant for self-use or the use of their employees or other persons specified in paragraph 3 of the Schedule III of the Central Goods and Services Tax Act, 2017.	6	-
(vii) Construction services other than (i), (ii), (iii), (iv), (v) and (vi) above.	9	-”.

(Ruchi Bisht)
Under Secretary to the
Government of India

Note:-The principal notification was published in the Gazette of India, Extraordinary, vide notification No. 11/2017 - Central Tax(Rate), dated the 28^thJune, 2017, vide number G.S.R. 690 (E), dated the 28^th June, 2017 and was last amended by notification No. 20/2017-Central Tax (Rate) dated the 22nd August, 2017vide number G.S.R. 1045(E), dated the 22nd August, 2017.

📚 Frequently Asked Questions (FAQs): Notification No. 24/2017 – Central Tax (Rate)

Q1: What is Notification 24/2017 in GST?

Answer: It reduces GST on works contract services.
It provides a lower rate of 12% for specific government-related construction services.

Q2: What is works contract under GST?

Answer: It refers to construction-related services.
It includes building, repair, maintenance, and installation of immovable property.

Q3: When does 12% GST apply?

Answer: For government-related non-commercial projects.
If the project is for public use like schools or hospitals, lower rate applies.

Q4: When is 18% GST applicable?

Answer: For other construction services.
If project is commercial or private, higher rate applies.

Q5: Does this apply to private builders?

Answer: Mostly no.
Private commercial projects generally attract 18% GST.

Q6: Does subcontractor get 12% rate?

Answer: Depends on conditions.
Subcontractor must also meet eligibility criteria.

Q7: What is meant by non-commercial use?

Answer: Not used for business or profit.
Public welfare buildings fall under this category.

Q8: Is GST applicable on government contracts?

Answer: Yes, but at reduced rate in some cases.
Notification 24/2017 provides relief for eligible projects.

Q9: Can wrong rate lead to penalty?

Answer: Yes, it can.
Incorrect GST rate may result in tax demand and penalties.

Q10: Which notification defines service rates?

Answer: Notification 11/2017.
This notification amends that base notification.

Q11: Is this notification still applicable?

Answer: Yes, unless amended later.
Always check latest updates.

Q12: What documents are important?

Answer: Contract and project details.
They help determine correct GST rate.

Q13: Does GST apply on repair services?

Answer: Yes, included in works contract.
Repair and maintenance are covered under this notification.

Q14: Who should be careful about this?

Answer: Contractors and developers.
Incorrect classification is very common.

Q15: Where to get GST help?

Answer: Professional support is useful.
Many businesses rely on experts for correct GST application.

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