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Contract payment

05 July 2020

I charged ₹100000 for constructing a house.. & I received advance ₹25000 in july 4 from my client.

1. How I raise bill for advance
2.If iam not a registred builder and construct 1 or 2 buildings in a year what are the GST implications
pls help

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7 Replies

KRISSHNAN KP (4215 Points)
Replied 05 July 2020

What is your contact value

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Vijeesh Parapattil (105 Points)
Replied 05 July 2020

If my total cost including wages, material plus margin is ₹100000

K Anurag (3 Points)
Replied 05 July 2020

Sir
1.you have to raise advance receipt for client.
2. depand upon your regional threshold limit whether your are liable for registration or not on your turnover.

Vijayprakash P (1313 Points)
Replied 05 July 2020

Builders can opt for the existing 12% GST rate for homes that are under construction as on 31st march but will have to pass on the benefit of input tax credit to the customers.

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 06 July 2020

Dear Vijeesh
In term of Section 22 of CGST the threshold limit to obtain Registration for supply of Services is 20Lac per annum.
So if your income is not exceed that limit you are not required to take Registration.

can you clarify whether you builds individual house or building apartment ??? because the GST rate in both cases is different.