GST on Construction alternative

Big residential projects waive a certain portion of gst which they receive as input credit from their counterparts.

Hello, thank you for this. Can you please elaborate or direct to the relevant provision/section so I can read more about it?

 

 

 

Construction of residential projects is presently 1.5% or 7.5% without ITC benefit.

Where the customer is not willing to pay entire GST, as a business decision, you can bear a portion of GST so that the customer pays the balance. 

Dear Ria.
As per Notification 11/2017 CT (rate)

Construction of affordable residential apartments: Rate is 1.5 percent without ITC (Deduction of value of land 1/3rd . so 1.5X2/3 comes to 1% without ITC).

Construction of residential apartments other then affordable residential apartments : Rate is 7.5 % (Deductible 1/3rd value of undivided share of land. so 7.5 x 2÷3 comes to 5% without ITC)

so as per your query you do not cover under the construction services provided as in capacity of promotor in Residential Real Estate Projects (RREP) . You are providing construction services as work contractor (ie individual house construction) so in that case the rate is 18% with ITC.

So as such yes its hard to survive kind of your business model.

Note : Recipient of your services (Construction services) cannot claim ITC.