Good day sir,
I have entered into agreement with a Architect for construction of my Duplex independent house prior implementation of GST. Labour as well as Material is to be arranged by him. Nothing is mentioned about applicable tax in agreement, However it is written in agreement that house possession will be given in " ready to move condition" and 1500₹/ sq ft will be charged. The total contact cost was about 40 lac.
He carried out half work pre GST and remaining work post GST. But he haven't paid any GST as till now he is not having GSTIN, Additionally he have bought most of the material post GST without paying GST by taking fake bills to maximize his savings.
As he have not taken proper GST invoices, now I cannot claim guarantee on any of my house fittings.
I want to know 3 things :
1) if fixed rate is agreed per sq ft - it is implied that applicable taxes are included - right.
2) if I file a complaint against him in GST for providing fake invoices , will any action come against me.( means do I have to pay GST) it should be his responsibility as he bought material.
3) will any action come on me for not paying GST on contact amount although I have already paid him flat rate which includes taxes ( though not expressed in agreement) and he is also not having GSTIN.
Early reply will be highly appreciated
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GST on house construction agreement along with material
Replies (2)
1) Its not implied that it is inclusive of taxes.
2) Why he need to provide fake invoices ? He cant claim credit using any invoice as its blocked credit for construction of house.As rate per sq.ft agreed, why he need to show invoices to you & reimburse ?
3) Registration, Collection of GST & Issue of GST invoices responsibility lies with the contractor only.
2) Why he need to provide fake invoices ? He cant claim credit using any invoice as its blocked credit for construction of house.As rate per sq.ft agreed, why he need to show invoices to you & reimburse ?
3) Registration, Collection of GST & Issue of GST invoices responsibility lies with the contractor only.
Thanks for reply Mr Uday
Regarding point 2, I have entered into agreement for construction of house on my plot and he agreed to give possession in ready to move condition.
He agreed in front of witnesses that he will give all original invoices of material used to me for below 3 purposes :
1) To take loan installments.
2) so that I can claim warranty of material used when required ( for example a faucet have 8 years warranty I will not be able to claim same without absence of invoice)
3) To show what is price of material he is using in construction ( As he agreed that he will use tiles of 110₹/sqft in agreement)
initially, he gave some invoice but later on for retaining GST money by unfair means he bought most of the material without paying GST and gave us fake invoices of material.
He couldn't raise his invoices as he is not having any GSTIN. Now I want to take orignal invoices from him to check how much he invested in my house and how much he kept with him by unfair means.
can I give a written complaint in GST department that this guy is not having GSTIN and has not given me GST invoices.
Can any action come on me too. As GST is to be applied on one item only once. and he is supposed to pay GST on material when he bought it. Does any liability of GST arise on me too?
Regarding point 2, I have entered into agreement for construction of house on my plot and he agreed to give possession in ready to move condition.
He agreed in front of witnesses that he will give all original invoices of material used to me for below 3 purposes :
1) To take loan installments.
2) so that I can claim warranty of material used when required ( for example a faucet have 8 years warranty I will not be able to claim same without absence of invoice)
3) To show what is price of material he is using in construction ( As he agreed that he will use tiles of 110₹/sqft in agreement)
initially, he gave some invoice but later on for retaining GST money by unfair means he bought most of the material without paying GST and gave us fake invoices of material.
He couldn't raise his invoices as he is not having any GSTIN. Now I want to take orignal invoices from him to check how much he invested in my house and how much he kept with him by unfair means.
can I give a written complaint in GST department that this guy is not having GSTIN and has not given me GST invoices.
Can any action come on me too. As GST is to be applied on one item only once. and he is supposed to pay GST on material when he bought it. Does any liability of GST arise on me too?
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