I’m a Civil Contractor and I agreed to undertake the construction of an individual house on a turnkey basis (Means both materials & labor) for Rs.1500/- per Sq.Ft and the total area to be constructed is about 2000 Sq.Ft. The plot is owned by the client himself and my job is only to construct a house for him in his own plot.
- Now in this case what should be the GST % I need to invoice, my client.
- Will I get Input Tax Credit (ITC) for all the materials (Steel, Cement, Paints, Floor Tiles, Sanitary, Plumbing & Electrical Materials Etc…) that I purchase to execute this contract?
- If I get the Input Tax Credit (ITC) from the GST department, do I need to return back that amount to my client?
- Is there any upper limit to claim the Input Tax Credit (ITC), For example, this work’s total value is only 30 Lakhs (i.e Rs.1500/- per Sq.Ft X Total Area of 2000 Sq.Ft), and what if I claim Input Tax Credit (ITC) of about 24 Lakhs (i.e, about 80% of the invoice value). Is this acceptable by the GST department?
CAclubindia
