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Informative

18% GST on Sub-contracted Construction Services for PMAY: AAR Classifies Service Under HSN 9954

Update / Judgement Date

06 Aug 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

GSTOther Legal Matters

The AAR has ruled that 18% GST is applicable on "sub-contracted construction services for PMAY," classifying the service under HSN 9954. The ruling clarifies that even though the main project is exempt from GST, a subcontractor's services may not be. This decision provides much-needed clarity on the taxability of subcontracted services and serves as a crucial reminder to businesses.