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Contract payment

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Vijeesh Parapattil

74 Points Posted on 05 July 2020

I charged ₹100000 for constructing a house.. & I received advance ₹25000 in july 4 from my client.

1. How I raise bill for advance
2.If iam not a registred builder and construct 1 or 2 buildings in a year what are the GST implications
pls help

Replies (7)

Quick Summary

This discussion clarifies how to issue an advance receipt for a construction contract payment and explains GST implications for builders. It highlights that GST is payable on advance receipts. For builders constructing one or two houses annually, GST registration is only required if their annual turnover exceeds the specified threshold (e.g., ₹20 lakh for services under CGST Section 22). The applicable GST rate may differ based on whether individual houses or apartments are being built.

KRISSHNAN KP

1708 Points Posted on 05 July 2020

What is your contact value

Vijeesh Parapattil

74 Points Posted on 05 July 2020

If my total cost including wages, material plus margin is ₹100000

K Anurag

23 Points Posted on 05 July 2020

Sir
1.you have to raise advance receipt for client.
2. depand upon your regional threshold limit whether your are liable for registration or not on your turnover.

Vijayprakash P

776 Points Posted on 05 July 2020

Builders can opt for the existing 12% GST rate for homes that are under construction as on 31st march but will have to pass on the benefit of input tax credit to the customers.

Pankaj Rawat

GST Practitioner

29904 Points Posted on 06 July 2020

Dear Vijeesh
In term of Section 22 of CGST the threshold limit to obtain Registration for supply of Services is 20Lac per annum.
So if your income is not exceed that limit you are not required to take Registration.

can you clarify whether you builds individual house or building apartment ??? because the GST rate in both cases is different.