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House construction contract GST

G Singh (Cap) (72 Points)

15 March 2020

Good day all,
I have given my house construction contact to a Architect. we have agreed fixed rate of 1500₹/sqft ( including all taxes). He agreed to provide GST invoices of all the items and fittings used in construction and finishing, However now he is either providing fake invoices without GST or refusing to give any invoices. He seems like doing tax evasion. what should I do ? Can any action come on me ?

your prompt reply will be highly appreciated.

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6 Replies

sreeram eshwar (9 Points)
Replied 16 March 2020

If he gives a tax invoice take that or else take a declaration from him having words "In case of any future action by department on the architect,GST will not be reimbursed by us". The need for getting a declaration is indirect taxes are to be borne by the end customer. So that we can be safe at the end

1 Like

RAJA P M ("Do the Right Thing...!!!") (128111 Points)
Replied 16 March 2020

@ Mr G Singh.,

I understand Your query...!

But,
What about construction details...?
Can You give some details about payments, agreement for billing, Completion certificate & other details..?

1 Like

sabyasachi mukherjee (27851 Points)
Replied 16 March 2020

@

G.Singh

do u want to take immediate credit ..
I mean to say input tax credit...
do u have a gst number .

1 Like

G Singh (Cap) (72 Points)
Replied 16 March 2020

@ Raja PM
sir, we have entered into contact for construction of my house.

He demanded and we agreed on flat rate of 1500/sqft, which includes material as well as labour.(Agreement does not say anything about GST, However it is implied that indirect and direct taxes are included)

At the time of signing agreement he agreed that he will give me all invoices as I have taken house construction loan which is released in installments after providing proofs to bank that last installment was spent on construction. He also agreed to give invoices so that I can get benefit of warranty of lights, fittings etc.

But later on to maximize his profit he bought most of things without GST invoices and also, as he is not having GSTIN he haven't paid any GST on total contact cost.

However, initially he gave me few GST invoices but later on he provided invoices either without GST or fake invoices of some other project.

Now construction is still going on and I asked all original invoices but he is refusing to give it.

He also constructed his small hotel and bought all material without paying GST.

I want to take action against him so that he should pay his liability and give my GST invoices to me. I want to know that can any action come on me also or not.

sabyasachi mukherjee (27851 Points)
Replied 16 March 2020

@ G SINGH

IN THE ORIGINAL AGREEMENT IS THERE ANY CLAUSE

STATING THAT THE DEVELOPER WILL INDEMNIFY FOR THE ACCESSORIES NOT PROVIDED AS PER THE ORIGINAL TERMS ...
LIKE 1. BRANDED VITRIFIED TILES.
2. BRANDED FITTINGS

1 Like

G Singh (Cap) (72 Points)
Replied 16 March 2020

@ s.mukherjee

sir, I don't have GST number
However, he is also not having GST number

But, he charged me hefty price of 1500₹/sqft which includes everything. he shouldn't be allowed to do tax evasion and not give me my original invoices also bases which I can claim my warranty on fittings and equipments.