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GST ON CONSTRUCTION

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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)
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

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

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

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 


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