how to gst applicable for construction business

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S ELAVARASI

ACCOUNTANT

1542 Points Posted on 16 July 2018

A gstin holder doing Wood and its related business. Now he will doing construction business like

**built a house and sale to customer..
** Take with Contract basis and Finish the house and submit to building owner...

In this way how to give billing to customers for Sale and Contract..?
How to Gst applicable in this transactions?
How to take itc for purchases?

Replies (4)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121546 Points Posted on 16 July 2018

Heading 9954

Services by way of pure labour contracts of construction, erection, commissioning, or installation of original works pertaining to a single residential unit otherwise than as a part of a residential complex. ........... Nil rate.

If he takes complete work contract with material, he will have to charge 18% over total cost (without land cost) . ITC can be availed.

But pure labour contract is nil rated...... material directly billed in owner's name.

S ELAVARASI

ACCOUNTANT

1542 Points Posted on 16 July 2018

Thank You for the reply Sir.,

After completing the Constructions he will give bill to Owner. Then How to Issued Bill to owner?

Can You give some examples or Any details based on Construction business?

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121546 Points Posted on 16 July 2018

When complete house property is sold after constructing house over any land, then there will be direct registration of property and no GST bills would be issued. ITC over material or labour cannot be claimed.

In case sold during construction period, GST will be charged at 12% over full agreement value including cost of land. Again ITC available.