Due to some confusion in the minds of the stakeholders especially works contract service suppliers regarding the change in GST Rates on Construction service w.e.f. 18th July 2022. Therefore, the following clarification has been issued for general information and guidance: -

The GST rate on composite supply of works contract services as defined in clause (119) of Section 2 of the Nagaland Goods and Services Tax Act, 2017 was prescribed at 18% w.e.f. 1st July 2017 vide Government Notification F.NO.FIN/REV-3/GST/l/08(Pt-l) "N" dated 30th June 2017. Subsequent amendments made thereafter are as follows; -

1.      Serial number 3, the item number (iii) was substituted vide Notification F.NO.FIN/REV- 3/GST/l /08(Pt-1 )/426 dated 22nd August 2017 and the rate of tax on composite supply of works contracts services to Central Government, State Government, Union Territory, a local authority, or a Governmental authority now stands at 12%;

2.      Serial number 3, item (vi) was substituted vide Notification F.NO.FIN/REV­S/GST/l/08(Pt-l)/480 dated 27th September 2017;

3.      Serial number 3, item (vii) was substituted vide Notification F.NO.FIN/REV- 3/GST/l/08(Pt-l )/39 dated 26th October 2017;

4.      Serial number 3 item (iv), (v) and (ix) was substituted vide Notification F.NO.FIN/REV- 3/GST/l /08(Pt-1 )/34 dated 25th January, 2018

5.      Serial number 3 item (i) was substituted; item (ii) was omitted; and in items (iv), (v), and (vi), the words, brackets, figures, and letters "other than that covered by item (i), (ia), (ib), (ic), (id), (ie) and (if) above" was inserted; after the item (v), item (va) was inserted and item (xii) was substituted vide Notification F.NO.FIN/REV-3/GST/l/08(Pt-l) (Vol. 1)/l I 1 dated 29th March 2019;

6.      Serial No. 3 items (iii), (iv), (v), (va), (vi) and (ix) and entries (i), (ia), (ib), (ic), (id), (ie), (if), (vii), (viii) in item (xii) was substituted vide Notification F.NO.FIN/REV-3/GST/1/08 (Pt-I) (Vol.II)/!53 dated 13th July, 2022.

Therefore, it is hereby clarified that all composite supply of Works contract services other than those listed in items (i), (ia), (ib), (ic), (id), (ie), (if), (vii), (viii), (x) and (xi) of Serial No. 3 shall attract GST @18% w.e.f. 18th July 2022 (Refer Central Notification No.03/2022-Central Tax (Rate) dated 13lh July 2022).

The following notifications on GST Rates on Services are available in the department web portal "nagalandtax.nic.in" for ready references; -

1.      Notification F.NO.FIN/REV-3/GST/l/08(Pt-l) "N" dated 30"' June 2017

2. Notification F.NO.FIN/REV-3/GST/l/08(Pt-l)/426 dated 22nd August 2017,
3. Notification F.NO.FlN/REV-3/GST/l/08(Pt-l)/480 dated 27"' September, 2017,
4. Notification F.NO.FIN/REV-3/GST/l/08(Pt-l)/39 dated 26,h October, 2017,
5. Notification F.NO.FIN/REV-3/GST/l/08(Pt-l)/101 dated 28'" November, 2017,
6. Notification F.NO.FIN/REV-3/GST/l/08(Pt-l)/34 dated 25'" January, 2018.
7. Notification F.NO.FIN/REV-3/GST/l/08(Pt-l) (Vol. 1J/05 dated 31st December, 2018,
8. Notification F. NO. FIN/REV-3/GST/l/08(Pt-l) (Vol. 1J/111 dated 29'" March 2019,
9. Notification F.NO.FIN/REV-3/GST/l/08(Pt-l) (Vol. 1)/131 dated 10'" May, 2019.
10. Notification F.NO.FIN/REV-3/GST/l/08(Pt-l) (Vol. II)/71 dated 2nd June 2021,
11. Notification F.NO.FIN/REV-3/GST/l/08(Pt-l) (Vol.II)/74 dated 14'" June, 2021,
12. Notification F.NO.FIN/REV-3/GST/l/08(Pt-l) (Vol.II)/94 dated30" September, 2021.
13. Notification F.NO.FIN/REV-3/GST/l/08(Pt-l) (Vol.II)/109 dated 18"' November, 2021
14. Notification F.NO.FIN/REV-3/GST/l/Q8(Pt-I) (Vol.ll)/153 dated 13'" July, 2022. 

(DIPR)