Gst on const. residential house

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Student CA Final
33 Points Posted on 14 April 2021

what is gst rate on construction of residential house (material & labour supplied by contractor) & wheather the itc will be available ?

 

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On 14 April 2021 at 11:40 Report
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This discussion clarifies the Goods and Services Tax (GST) applicable to the construction of residential houses when a contractor supplies both materials and labour. The applicable GST rate is 18%. While the works contractor can claim Input Tax Credit (ITC) on their purchases, the house owner cannot claim ITC for the construction of their residence, as it's specifically disallowed under Section 17(5) of the CGST Act.

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Chartered Accountant
24588 Points Posted on 14 April 2021
18% GST rate is applicable on contractor works

Yes ITC is available
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On 14 April 2021 at 12:30
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CMA
13117 Points Posted on 14 April 2021

On works contract service, GST @ 18% would be applicable. No ITC can be claimed by the house owner in respect of the construction of house, as such tax credits are ineligible u/s 17(5) of CGST Act. However, the works contractor can avail ITC on purchases.

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On 14 April 2021 at 13:35

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