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construction work Gst rate

Manoj Sharms (18 Points)

29 June 2017

Sir construction work pe kitna gst hai

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Purnima (Professional) (289 Points)
Replied 29 June 2017

To determine rate you have to first identify whether your service fall into works contract service or construction service as for works contract service rate is 18% and for construction services rate is 12%.

Construction Activity:Sch 2 entry 5(b)

Construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier.

Works Contract Service:Sec 2(119) of CGST

A contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract.

Generally if the value charged from customer includes the value of land then the activity falls under construction service.Services provided by contractors and sub-contractors would fall under works contract services and hence 18% gst applicable.

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Manoj Sharms (18 Points)
Replied 30 June 2017

thanx

Wasim Chhalawala (2 Points)
Replied 09 July 2017

hi i want to know abt that iam starting to built apartment for sale as im giving contract with material to contractor so how being GST will b aply on me plz say me in details.