Non residential building construction is normally treated as a works contract service under GST. In the initial years, different project structures and valuation methods sometimes led to different effective tax outcomes for similar institutional or public building projects. This created confusion for contractors, educational trusts, hospital managements and other organisations that needed a clear and stable tax position for long duration projects.
After the September 2025 rationalisation, construction services for schools, hospitals, religious buildings and other non residential public or institutional properties covered under SAC 995415 generally fall in the 18 percent slab with input tax credit. This standard rate applies to most such projects unless a special notification provides a different treatment for a specific scheme or type of contract. A single clear slab has made quotations, contract drafting and
GST calculations
simpler for both contractors and clients.
The table below gives the latest standard GST rate for SAC code 995415.