I want to form a pvt ltd. company and do construction and marketing of a commercial building for a builder/land owner (without any sale rights, only works contract). I want to know the GST implications:
1. Can my company avail ITC ?
2. Do I have to charge GST to my client (the builder/land owner) in invoice and at what rate ?
3. Can my client avail ITC on my invoices when he sells the commercial properties ?
Thanx in advance
Dear Mr Pankaj,
Point 3 - As it is a commercial property I think the builder can take ITC because he will sell at GST rate of 12%. In residential apartment case he has option of 5%.
DEAR RAMESH
AS PER THE FAQ RELEASE ON CBIC SITE DT. 7.5.2019 ON REAL ESTATE , THE RATE OF TAX APPLICABLE ON THE WORK CONTRACT SERVICE PROVIDED BY CONTRACTOR TO PROMOTER FOR CONSTRUCTION OF RESIDENTIAL APARTMENT IS 12% & FOR COMMERCIAL APARTMENT IS 18%.
HENCE IF YOU ARE PROVIDING WORK CONTRACT SERVICE TO PROMOTER TOWARDS COMMERCIAL APARTMENT ITS 18% (WITH ITC)
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