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Seprate 5 on residential flat or including gst

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asif shaikh

192 Points Posted on 08 March 2023

my client started construction business of residential flate. After 1-4-19 5% on affordable house and 1% of non affordable house. my query is 5% or 1% how we charge Gst on receipt seprat Gst Or including Gst. Itc is not available in this case. Any circular, notificatiin Or order is about this. please inform. thank you.

Replies (2)

Quick Summary

This discussion clarifies how to charge GST on residential flats for a construction business. It explains that GST (5% for affordable housing, 1% for non-affordable) should be charged on the total value of the flat. If GST isn't explicitly separated in payment schedules, it's considered inclusive of the total amount received. Back-calculation is needed to determine the taxable value and raise invoices accordingly, especially when payments are received before invoicing.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212444 Points Posted on 08 March 2023

GST is to be charged on total value of the flat/property sold.

Its bifurcation is to be specified in each installment to be charged.

If you have not segregated the value of flat and GST, the GST will be inclusive in total amount received from customer.

CA Altamush Zafar

GST Consultant

15986 Points Posted on 08 March 2023

GST of 5% and 1% (effective rates) to be applied on taxable value. Normally when payment shcedule is planned there itself it is decided how GST will be charged.

If nothing is decided better to calculate as inclusive of GST i.e. whatever money you receive you have received inclusive of GST and back calculation will be done. Invoice will be raised accordingly..

The above will apply only when money is being received before issuance of invoice.