GST ON CONSTRUCTION

336 views
User Avatar

Proprietor
186 Points Posted on 19 September 2020
Mr X provide a service of construction of house for which he used Material like goods etc.
Mr X is Gst registered person.
QUERIES:
1.Can he claim the ITC of cement and other construction materials.
2.Further at what rate he would charge GST to customer.
3.He received payment in frequent intervals.
do he need to charge GST or when he would create a invoice.
4.Many a times he received a payment of goods purchased as a reimbursement, would he need to issue invoice for that also.
0 Reply Share Follow
On 19 September 2020 at 10:49 Report
Replies (4)
Quick Summary
This discussion clarifies Goods and Services Tax (GST) implications for construction services. It addresses whether ITC can be claimed on materials, the applicable GST rates (1% for affordable housing, 5% for others, both without ITC), and when GST should be charged on payments received, including advances. The advice suggests that ITC is generally not available for construction materials under current regulations and that GST is payable upon receipt of payment.

User Avatar

Chartered Accountant
4524 Points Posted on 19 September 2020
1. Yes
2. 1%/5% For detail= https://cleartax.in/s/faqs-on-the-real-estate-sector-under-gst
3. GST is required to be paid on receipt of payment as per section 31(5) of CGST act.
4. yes
Reply
On 19 September 2020 at 17:19
User Avatar

student
241 Points Posted on 19 September 2020

Please find an answer to your question below 

1 and 2. Can't claim ITC according to the amendment brought in mid-Feb 2019

Property type GST rate till March 2019 GST rate from April 2019
Affordable housing 8% with ITC 1% without ITC
Non-affordable housing 12% with ITC 5% without ITC

With effect from April 1, 2019, 1% GST is charged on affordable residential apartments without ITC, while 5% GST without ITC is charged on other residential properties.

3,  Need to pay GST on money receipt and in case advance need to pay GST on Advance as well

4. I think no need to Issue invoice since it's just a reimbursement but it's totally dependent on the transaction to transaction.

 

Hope clears your queires
I case not you can reach out to me at info @ ammardawoodi.com

Reply
On 19 September 2020 at 19:24
User Avatar

Proprietor
186 Points Posted on 19 September 2020
Thanks for your response.
But in this case MR X is normal taking work contract for repair and maintenance of house or construction of small house
Reply
On 19 September 2020 at 19:28
User Avatar

student
241 Points Posted on 20 September 2020

Correct still as per my interpretation of Notification No. 03/2019-Central Tax (Rate) no ITC available and rate is 5%

Still, I would suggest you to go through notification no. 03/2019 you will have more clear picture 

Reply
On 20 September 2020 at 12:28

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Topics :

  1. Capital gains incidence due to bonus shares
  2. Amendment of Object Clause of Memorandum
  3. How Can I Request a Refund for an Accidental Airte
  4. TDS on salary paid in cash
  5. YEAR END GST ENTRY FOR RCM NOT PAID RS 5000 I.E OU
  6. Last Date To Fill ITR For Non-Audit Case
  7. Guidance Required on Filing Fresh Registration und
  8. IT Return Refund Status AY 2026-27
  9. Clarification Regarding Income Tax Demand Notice
  10. Online PAN Download: Check How?

More recent discussions | Post

Related Topics :

Loading