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Vipin Kumar   07 December 2018

Vipin Kumar

 7 likes  109 points

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We are a unregd in GST partnership firm having a open plot, appointed a builder to construct the buliding with labour and material vide an regd agreement and paid 50% advance on agreement
According to construction agreement builder will complete the work in next 6 months which will fall in next financial year

My question is

1.when he will raise the GST invoice in our name now at the time of payment or after completion of work( We have to pay the remaining balance in 2-3 installments according to the work)
2. Is it compulsory for us to take GST registration as contract is more than 20 lakhs
3.if we take GST registration can we claim the input credit for the GST paid to the builder and if we can, in which items it is allowed like rent received or receivable in future
4.if we take GST registration should we deduct any TDS in GST LAW

Thanks in advance


Rakesh Bandal (Self Employed and Agriculture)     07 December 2018

Rakesh Bandal
Self Employed and Agriculture 
 75 likes  1334 points

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If you are selling constructed flat by your own then

1. you need to charge GST from your customer (as per rules of CGST Act), read all sections related to works contract and builder

2. Bills i.e. service received from builder will be treated as contractor service and bills will be raised as per contract terms

3. You need to get registered under GST

Situation where flats can be sold by builder is not considered

in service tax it was called as triptite model, in GST also there are examples based on combination of situation 

Vipin Kumar   07 December 2018

Vipin Kumar

 7 likes  109 points

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We have not mentioned anything in our agreement regarding invoicing, in this situation what GST law says

We will not sell the units constructed but plans to lease out
After completion, at present our turnover in zero

This is purely construction contract builder will get only amount he will not get any share in the property

In this situation we are end user of construction service given by the builder, should we register in GST only because we are availing service of builder as we are not supplying any thing


Rakesh Bandal (Self Employed and Agriculture)     08 December 2018

Rakesh Bandal
Self Employed and Agriculture 
 75 likes  1334 points

View Profile | My Other Post

No, in present case you need not to get regsitered

you will not get GST input , being ITC is on input services on construction contract

if in furute your turnover exceeds basic exemption limit you need to get registered for lease services 

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