GST on roofing, waterproofing, cladding and painting work in 2026
How GST applies to roof and façade works contracts and to materials in India after the 22 September 2025 rate changes, with worked examples and invoice checks.
When a contractor supplies the material and does the work on your roof, terrace or façade, the job is a works contract under GST law and is generally taxed at 18% on the full contract value. That did not change in the rate restructuring that took effect on 22 September 2025 (often called GST 2.0). What did change are the rates on some materials: cement moved from 28% to 18%, and sand-lime bricks and marble and granite blocks moved from 12% to 5%. If you buy material yourself and hire labour separately, you pay GST on each product at its own rate, and labour from a small contractor who is not registered for GST carries no GST.
Part of roof and façade cost per sq ft in India.
What a works contract is
Section 2(119) of the CGST Act, 2017 defines a works contract as a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property, where transfer of property in goods (material) is involved in carrying out the contract. Schedule II of the Act treats a works contract as a supply of services.
Terrace waterproofing, re-roofing, fixing cladding to a wall and painting a building with the contractor's paint all fit that description. The consequence is that GST is charged on the whole contract value, material and labour together, at the rate for works contract services, rather than separately on the paint and on the labour.
The rates that matter for a household
| Situation | Usual GST position | Notes |
|---|---|---|
| Supply-and-apply contract by a registered contractor (waterproofing, roofing, cladding, painting) | 18% on contract value | 9% CGST + 9% SGST within a state |
| Contractor under the composition scheme for services | Contractor pays tax at a concessional rate but cannot collect GST from you | Bill should be a bill of supply, not a tax invoice |
| Contractor not registered (turnover below the threshold) | No GST charged | Common for small local contractors |
| Cement bought by you | 18% from 22 September 2025 (earlier 28%) | GST Council, 56th meeting |
| Sand-lime bricks, marble and granite blocks | 5% from 22 September 2025 (earlier 12%) | Blocks, not finished slabs |
| Paints, steel sheets, aluminium panels, most waterproofing chemicals | Generally 18%; check the rate for the product's HSN code | None of these was among the items whose rate changed on 22 September 2025; confirm on CBIC |
| Home insurance premium | 18% | The 2025 exemption covered individual life and health policies, not home policies |
The GST Council's recommendations at its 56th meeting (3 September 2025) for works contracts changed only a few specific entries, such as works contracts predominantly of earthwork supplied to government, which moved from 12% to 18%. Ordinary repair and renovation work on a private house was already at 18% and stays there.
Worked example 1: contractor supplies and applies (illustrative)
A registered contractor quotes ₹1,00,000 for PU waterproofing of a terrace, material and labour together.
- Contract value: ₹1,00,000
- GST at 18%: ₹18,000 (₹9,000 CGST + ₹9,000 SGST)
- Total: ₹1,18,000
Worked example 2: you buy material, hire labour (illustrative)
You buy waterproofing material for ₹55,000 including 18% GST and pay a local applicator ₹35,000 for labour. The applicator is not registered for GST.
- Material: ₹55,000 (of which GST is 55,000 × 18 ÷ 118 = about ₹8,390)
- Labour: ₹35,000, no GST
- Total: ₹90,000
The second route can look cheaper, but you then carry the risk of buying the wrong product or quantity, and the applicator's warranty may be weaker because the material was not theirs. A manufacturer's system warranty may also require an approved applicator. Compare like with like.
The registration threshold, briefly
A supplier must register for GST once aggregate turnover crosses the threshold that applies. For suppliers of services the general threshold is ₹20 lakh a year (₹10 lakh in some special category states, section 22 of the CGST Act); for suppliers of goods only, many states apply ₹40 lakh. A works contract is a service. A contractor below the threshold need not register and cannot charge GST. If a bill shows GST, it must show the supplier's GSTIN, and you can check that the GSTIN is active using the taxpayer search on the GST portal.
Pure labour for a new house
GST law exempts pure labour contracts of construction, erection, commissioning or installation of original works for a single residential unit that is not part of a residential complex (Sl. No. 11 of Notification 12/2017-Central Tax (Rate)). That exemption is about original construction; it does not generally cover repair or repainting labour. Check the current exemption notification if you are building a new house and hiring labour only.
Checking your invoice
- Supplier name, address and GSTIN
- Invoice number and date
- Description of work (for example "terrace waterproofing, PU system, 1,020 sq ft")
- Taxable value, rate, and CGST + SGST (or IGST if the contractor is in another state)
- Place of supply (for work on immovable property it is where the property is)
If GST is charged without a valid tax invoice, ask for one. Without it you have no proof that tax was charged lawfully, and it weakens your paperwork in a dispute or an insurance claim.
Businesses and landlords: input tax credit
If the building is used for business, note that GST law blocks input tax credit on works contract services for construction of immovable property, including repairs to the extent they are capitalised, except for plant and machinery. A chartered accountant can advise on your case.
FAQ
Did GST on house repairs fall in September 2025?
For a supply-and-apply works contract on a private house, the rate remained 18%. What fell was GST on some materials, especially cement.
Can a contractor charge 12% or 5% on my roof work?
Concessional rates apply only to specific works listed in the notifications, mostly for government or certain housing projects. For a private repair job, a rate below 18% on a tax invoice needs an explanation.
Is GST charged on the advance I pay?
For services, GST generally becomes due on advances received. A registered contractor may issue a receipt voucher and tax on the advance; the final invoice then adjusts it.
Who checks whether a contractor is registered?
You can search the GSTIN on the GST portal. Complaints about tax evasion go to the GST authorities, not to consumer commissions.
Sources and where to check
- CBIC GST portal — CGST Act, rate notifications and the exemption notification
- GST Council — press release of the 56th meeting and the rate changes from 22 September 2025
- GST portal — search a taxpayer by GSTIN
