Services taxed at 7.5%
A construction-only rate. It applies to residential apartments other than affordable ones, and to commercial apartments inside a residential real estate project, where the promoter is on the post-April 2019 structure.
3 entries of the GST rate schedule for services are taxed at 7.5%, spread across 1 heading of Chapter 99.
- Schedule entries3
- Headings1
- Service codes0
Not sure your service belongs at this rate?An IncorpX GST advisor will check it, freeWhat the schedule taxes at 7.5%
Every entry at this rate, grouped by the heading it is written under. The credit condition sits with each entry, because at a concessional rate it usually decides whether the rate is worth taking.
Construction of a residential apartment other than an affordable one, by a promoter in an RREP, on the same terms.
Restricted credit Credit restricted per Annexure II. The rate applies after the one-third land deduction.Construction of a commercial apartment by a promoter in an RREP, on the same terms.
Restricted credit Credit restricted per Annexure II.Construction of a residential apartment other than an affordable one, by a promoter in an REP that is not an RREP.
Restricted credit Credit restricted per Annexure I.Rates shown here are as published in GST rates on services, Notification 11/2017-Central Tax (Rate) as amended up to Notification 15/2025-Central Tax (Rate) and are reproduced for reference. The GST Council revises rates through notifications, including the rate rationalisation effective 22.09.2025 that withdrew the 12% and 28% slabs for most services and introduced a 40% rate for a short list of them. Always verify the current rate and the conditions attached to it on the CBIC GST rates page or the CBIC tax information portal before invoicing or filing. Rates exclude any applicable cess. IncorpX provides assistance for GST registration and return filing if you need help.
- Classification: Scheme of Classification of Services, Annexure to Notification 11/2017-Central Tax (Rate), Central Board of Indirect Taxes and Customs (cbic-gst.gov.in).
- Rates: GST rates on services, Notification 11/2017-Central Tax (Rate) as amended up to Notification 15/2025-Central Tax (Rate) (CBIC rate finder).
- Exemptions: Exempt services, Notification 12/2017-Central Tax (Rate) as amended up to Notification 16/2025-Central Tax (Rate).
- Reverse charge: Services taxable under reverse charge, Notification 13/2017-Central Tax (Rate) as amended.
- Current position: GST Council notifications published on the CBIC tax information portal.
This directory reproduces government classifications and rate entries for reference. The official gazette and CBIC notifications remain the authoritative sources. IncorpX provides assistance for registrations and filings that use these codes and does not issue the classification or the rates itself.
Guides and resources
How the rate you land on plays out in your invoices and returns.
7.5% GST questions
Which services are taxed at 7.5% under GST?
3 entries of the GST rate schedule for services are taxed at 7.5%, spread across 1 heading of Chapter 99. Like every apartment rate it applies to the value after the deemed one-third deduction for land, and it restricts input tax credit under the annexure to the notification.
Do I get input tax credit at 7.5%?
Usually not in full. Most entries at this rate are conditional on not taking input tax credit on the goods and services used to supply them, or restrict it in the way the annexure sets out. Each entry on this page shows its own credit condition.
How is 7.5% split between CGST and SGST?
For a supply within one state the rate splits equally: 3.75% CGST and 3.75% SGST or UTGST. For a supply between states the whole 7.5% is charged as IGST instead.
Did this rate change on 22 September 2025?
The 56th GST Council rationalised the slab structure with effect from 22 September 2025. For services it withdrew 12% and 28% in most places, created a 40% demerit rate, moved several concessional entries such as works contracts for government bodies up to 18%, and cut beauty and physical well-being services and effluent and bio-medical waste treatment down to 5%. Always verify the current position on the CBIC portal before invoicing.
Not sure this is the right rate for your services?
Tell us what you actually supply and an IncorpX advisor will help you confirm the SAC code, the rate that applies to it and whether reverse charge is in play, before you invoice or file. Free, with no obligation. IncorpX provides assistance for GST registration and return filing; applications are always filed in your name with the tax authorities.
Nebin Binoy 
