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Gst on villas construction

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Ananth Padmanabharao

3 Points Posted on 16 February 2020

Sir, we wish construct 100 individual houses, each for single family,

Land is owned by proprietor and his wife, i wish to know whether advances recived are taxable.

Any devlopment agreement is required to lessen GST TAX?

Each single house is sold at 99 laks, 1 crore, and above

can we pay tax after invioce issue?

What is tax rate, for this,

Pls, suggest proper tax planning.

Replies (3)

Quick Summary

This discussion explores the Goods and Services Tax (GST) implications for constructing 100 individual villas. Key questions revolve around the taxability of advance payments received, whether a development agreement can reduce GST liability, and the applicable tax rate for properties sold at ₹1 crore and above. The participants, identified as builders and developers, are seeking guidance on proper tax planning and whether GST is payable after invoice issuance, noting that 18% GST is applicable after construction.