Confusion in gst to be paid by a building contractor



Hi Experts,

I am seeking some clarity on GST to be paid by a building contractor, if he wishes to construct a building to some client who owns the land.

Suppose the contractor agrees to an amount of 1.5 crore rupees for the building including gst for all materials, labour and execution.

contractor bought goods for 70lacs including gst (Steel 18% and cement 28%), labour 35 lacs to labourers directly. 

his expenses, fuel etc - 10lacs.

total - 70+35+10 = 115 lacs in that he already paid around 16lacs as gst for procuring cement and steel.

according to my understanding, his gst liability = 18% of 150lacs = 27 lacs.

total liability = 27lacs - 16 lacs already paid during material purchase = 11lacs. 

profit made is 150lacs - 115lacs - 11lacs(gst to be paid) = 24 lacs.

final profit 24lacs - income tax = X

or 

total liability = 27lacs + 16 lacs = 43 lacs 

profit made is 150lacs - 115lacs  - 27lacs = 8 lacs.

final profit 8 lacs - income tax = Y

Please let me know if X or Y is right in calculation.

Kindly help me in this regard.

 
Reply   
 
KVO Merau Kutchh

As such X for understanding the problem, but GST liability will be over 150*100/118  i.e. 22.88 L

 
Reply   
 

LEAVE A REPLY

Your are not logged in . Please login to post replies

Click here to Login / Register  

 


×

  CCI MENU