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GST APPLICABLE RATE FOR RESIDENTIAL HOUSE CONSTRUCTION

Hardik Shah (Tax Consultant) (85 Points)

11 October 2019

My Client named XYZ is doing construction of Only Residential Houses as Scheme.

Sale Deed of Only Land / FSI is done By Land Owners.

Construction Contract is Done by My Client XYZ.

There is Mutual verbal agreement between XYZ and Land Owner to Develop but not in writing.

So,I want to know that is New Rate of GST for Construction of Residential House of 1% or 5% is available to XYZ?

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160442 Points)
Replied 11 October 2019

If only construction services without any land value.... it will fall under 18% category in general...

But Services provided by way of Pure Labour Contracts of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of a civil structure or any other original works pertaining to the Beneficiary led Individual House construction or enhancement under the Housing for All (Urban) Mission or Pradhan Mantri Awas Yojana. is Nil.[Notification No. 12/2017- Central Tax (Rate) Dated : 28^th June, 2017].

Also .... Services by way of Pure Labour Contracts of construction, erection, commissioning, or installation of original works pertaining to a Single Residential Unit otherwise than as a part of a Residential Complex is also NIL [Notification No. 12/2017- Central Tax (Rate) Dated : 28^th June, 2017].

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