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GST input taken or not

bhanuprakash (Accountant) (21 Points)

13 March 2024

Can GST be claimed now on granite or tiles purchased for construction of office or shop?

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RAJA P M ("Do the Right Thing...!!!") (127921 Points)
Replied 13 March 2024

Generally it's not available or ineligible...

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Money Money (383 Points)
Replied 13 March 2024

Certainly! Let me provide you with information regarding GST on granite or tiles purchased for the construction of an office or shop.

Applicability of GST on Construction:
GST is applicable to construction activities in India, including private construction, commercial construction, or construction of flats/society.
Any property under construction intended for sale is considered a supply of service and is liable for GST.
Ready-for-sale properties do not attract GST; it is only payable on under-construction properties.
Exemptions and Concessions:
Affordable Apartment Housing Projects: GST on the construction work of affordable apartment housing projects is levied at a reduced rate of 1%.
Affordable housing refers to residential properties with a carpet area of up to 60 square meters in metropolitan cities and up to 90 square meters in non-metropolitan cities, with a value equal to or less than Rs. 45 lakhs.
Exemption for Certain Cases:
GST is not applicable to the construction of properties in the case of property resale, buying and selling apartments for use as a residence, and the buying or selling of land.
Construction services or enhancement services provided through pure labor contracts under the Pradhan Mantri Awas Yojana (PMAY) are exempt from GST.
Construction services through pure labor contracts for a single residential unit or a part of a residential complex are also exempt from GST.
e-Way Bills: e-Way bills are required for the transportation of building materials such as cement, steel, etc., only where the consignment value exceeds Rs. 50,000.
GST on Building Materials:
When purchasing building materials, such as granite or tiles, GST rates vary based on the type of material.
The GST rate on construction materials and building materials ranges between 5% and 28%1.
In summary, you can claim GST on granite or tiles purchased for the construction of an office or shop, but it’s essential to consider the specific context and applicable rates.