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Urgent - GST on house construction by builder for self

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G Singh

Cap

44 Points Posted on 18 March 2020

please advise How much GST will be applicable on house construction contract given to builder for construction of house for self on my own plot in which builder will arrange material and labor and deliver house in ready to move in condition ( completion).

2) if agreement executed before GST implementation and half work done after GST implementation.

Warm regards

Replies (2)

Quick Summary

This discussion addresses the applicability of GST on house construction contracts where a builder arranges both materials and labour to deliver a ready-to-move-in home. It clarifies that GST is applicable at 18% on works contracts, including the cost of materials. A key concern raised is the potential for double taxation if GST is applied to both the contract amount and the materials purchased by the builder, which are ultimately paid for by the homeowner.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121534 Points Posted on 21 March 2020

It is works contract.

All the bills received after July, 2017 will carry 18% GST.

G Singh

Cap

44 Points Posted on 20 April 2020

But this work contract includes material also which has to be bought by him for giving possession of house in ready to move condition.

As he was supposed to pay GST on all the material bought for construction. which obviously he will be paying from my money (fixed 1500 ₹ / sqft) .
if I pay 18% on contact amount too, I will be paying GST twice for one purpose.

whereas, GST can be imposed only once for one purpose.