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GST Rate on Construction Work with Material: Complete Guide for 2025 - Build it Upp

GST Rate on Construction Work with Material: Complete Guide for 2025 - Build it Upp

When planning to build your dream home or office, understanding GST (Goods and Services Tax) on construction work with material is crucial. It directly impacts your project cost and helps you plan your budget smartly. At Build it Upp – Best Construction and Interior Design Company in Delhi NCR, we simplify this for you.

GST on Construction Work with Material in 2025

Construction projects generally fall under two categories:

1. Works Contract with Material – This includes both labour and material (cement, steel, tiles, paint, etc.).

- GST Rate: 18% (applicable on total contract value).

2. Pure Labour Contracts – Only labour service without supply of material.

- GST Rate: 12%.

For affordable housing projects, the GST is slightly lower (around 1% without ITC). For commercial construction, GST remains at 18% with ITC benefits.

Why GST Matters in Construction?

  • Transparency in costing – No hidden charges, everything is structured.
  • Budget clarity – Helps homeowners know the exact tax outflow.
  • Compliance benefit – Ensures your project is fully legal and documented.

Build with Trust, Build with Experts

At Build it Upp, we not only design and construct beautiful spaces, but also ensure complete cost clarity for our clients. From planning to execution, we handle materials, labour, GST compliance, and high-quality finishing – all under one roof.

- Build it Upp – Best Construction & Interior Design Company in Delhi NCR
- Builditupp.com

- Call/WhatsApp: +91 9560610919

- Let’s build your dream project with clarity, trust, and style.