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

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Notification No. 24/2017 - Integrated Tax (Rate): Seeks to amend notification No. 08/2017 - IT(R) to reduce CGST rate on specified supplies of Works Contract Services.

IGST: [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 5, sub- section (1) of section 6 and clause (iii) and clause (iv) of section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) read with 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. 8/2017- Integrated Tax (Rate), dated the 28^th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 683(E), dated the 28^th June, 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.	12	-
(vii) Construction services other than (i), (ii), (iii), (iv), (v) and (vi) above.	18	-”.

(Ruchi Bisht)
Under Secretary to the
Government of India

Note:-The principal notification was published in the Gazette of India, Extraordinary, vide notification No. 8/2017 - Integrated Tax (Rate), dated the 28^th June, 2017, vide number G.S.R. 683 (E), dated the 28th June, 2017 and was last amended by notification No. 20/2017- Integrated Tax (Rate), dated the 22nd August, 2017 vide number G.S.R. 1049(E), dated the 22^nd August, 2017.

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

Q1: Is GST on works contract always 12% for government?

Answer: No, not always.
It is 12% only if the construction is for non-commercial use like schools, hospitals, or public housing.

Q2: What is works contract under GST?

Answer: It is a service involving construction.
Includes building, installation, repair, etc.

Q3: What is the default GST rate?

Answer: 18%.
Unless specific conditions are met for reduced rate.

Q4: Does this apply to private projects?

Answer: No.
Private contracts are generally taxed at 18%.

Q5: What is a governmental authority?

Answer: A body set up by government.
It performs public functions.

Q6: Does ITC apply here?

Answer: Yes, subject to conditions.
Works contract ITC rules can be complex.

Q7: What if I charge wrong GST rate?

Answer: You may face tax demand.
Plus interest and penalties.

Q8: How to verify eligibility?

Answer: Check contract purpose carefully.
Documentation is key.

Q9: Are repairs also covered?

Answer: Yes, if conditions met.
Includes maintenance and renovation.

Q10: Is residential housing covered?

Answer: Yes, if for public or employee use.
Not for commercial sale.

Q11: Is GST registration required?

Answer: Yes, generally required.
Apply here:
👉 https://finodha.in/online-gst-registration/

Q12: What is biggest challenge here?

Answer: Determining project purpose.
This is where most confusion happens.

Q13: Can rates change in future?

Answer: Yes, GST is dynamic.
Always check latest updates.

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