Tax invoice of contact

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This query is : Resolved

Quick Summary

This discussion clarifies GST implications for construction firms. While GST isn't applicable on the sale of a completed building, it is payable on sale under construction. Input tax credit can be claimed in the latter case, but not for completed buildings. If GST is applicable, it should be included in the invoice, and the GST registration remains compulsory for contract services.

Sanjay Budhiraja

Sanjay Budhiraja (Querist)

20 February 2022 Hello CA and Experts
Our firm is in business of construction and take contracts for construction of buildings.
My simple enquiry is can we take GST from the owner of the building on giving possession on completion.
If yes then how much we add in our invoice. Pl advise
Regards

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

21 February 2022 GST not applicable on sale of building after completion.

Sanjay Budhiraja

Sanjay Budhiraja (Querist)

21 February 2022 Sir
What about input credit. Can we claim it as refund or not..

Sanjay Budhiraja

Sanjay Budhiraja (Querist)

21 February 2022 Sir
Then why the GST Registration is compulsory for the contract services. ??

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

21 February 2022 Input credit/refund can't be claimed. Include it in selling price.
GST payable on sale under construction and ITC can be claimed in such a case.

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