one of client who is construction contractor who has paid GST on receipt received before completion Certificate is Rs.24155557/-. whereas as per income tax PCM method Turnover is Rs. 50668580/-.
which turnover is considered for GSTR 9 and 9C point of view and why ???
Thank you In Advance.
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GST turnover for construction contractor
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| For a construction contractor, 'aggregate turnover' and 'taxable turnover' for GST purposes are computed as follows: 1. Aggregate Turnover (for registration threshold and composition): Includes ALL supplies — taxable, exempt, nil-rated, zero-rated (exports), and inter-state supplies. However, it excludes GST itself (CGST, SGST, IGST, cess) and inward supplies on which RCM is paid. 2. What Counts for Construction Contractor: - Contract value (works contract billing) — full value including material and labour - If subcontracting: Both the main contractor's billing to client and the bill raised TO the main contractor by sub-contractor are separate turnovers - Advance received also counts toward turnover at the time of receipt (for registration threshold tracking) 3. GST Rate Impact: Construction services (Works Contract) for private clients attract 18% GST. For Government/Government entity affordable housing, concessional rates (12% or lower) apply under specific notifications. 4. Composition Scheme: Construction contractors CANNOT opt for GST Composition Scheme — works contract suppliers are specifically excluded. 5. Retention Money: Retention money held by the client is part of the contract value — GST liability arises on the full contract value at the time of supply (not just when retention is released). However, time of supply for retention may be deferred to when it becomes due — take a consistent and defensible position. 6. Input Tax Credit: Contractors can claim ITC on materials, services, and capital goods used in construction, subject to Section 17(5) restrictions (ITC blocked on construction of immovable property for own use). |
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