GST ON CONSTRUCTION

195 views 4 replies

Himanshu Agarwal

Proprietor

186 Points Joined August 2012

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.

Replies (4)

CA Sunil Kumar

Chartered Accountant

4524 Points Joined July 2014

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

Ammar Dawoodi

student

241 Points Joined June 2017

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