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Govt: 18% GST on Works Contract for Crematorium Construction Not Services

18% GST Rate for Crematorium Construction

The government stated that there is no Goods and Services Tax (GST) on the funeral, burial, crematorium, or mortuary services.

The press Information Bureau (PIB) articulated that the social media post which claims to affect there would be the GST on these services was guiding negatively. 

But, for the works contract or the issued contracts to do these constructions, installation or maintenance would be levied with 18% GST. 

PIB specified that as per GST, an 18% rate would be applied to the work contracts and not the services. 

Funerals, burials, crematoriums, and mortuaries are not subject to GST. The government official, who was not named, stated that nothing has changed in this regard.

Earlier the GST rate was 12% on works contracts supplied to the government and works contracts for roads, bridges, tunnels, railways, metro, effluent treatment plants, and crematoriums. The rate has now been revised to 18%. As inputs such as cement, steel, etc. attract GST at a rate of 28%/18%, this correction has been made to correct the inverted duty structure. A group of ministers recommended this.

Additional works contracts have drawn the GST at an 18% rate. Hence a consistent rate of 18% would be applicable to all the works contracts.

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