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GST percentage in Construction services

RAMESH (Accounts Manager ) (48 Points)

11 November 2018

Sir
Is GST rates reduced from 18% to 12% in the case of villa construction services. Any recent ammendments in last gst Council....? Need an clarification please do the needful

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3 Replies

Prem Kumar Chunduru (165 Points)
Replied 11 November 2018

rate of GST 12 or 18 is purely based on the structure of contract for villa construction. generally industry norm is 12% on full value of agreement. no latest amendments
Prem
9884343669

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Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 11 November 2018

As per Sl. No. 3(i) of Notification No. 11/2017-CT
(Rate) dated 28.06.2017 construction of residential complex
attracts GST @ 18% [CGST @ 9% and SGST @ 9%]

However, as the supply of service in relation to
construction of Flat/House/Complex also involves transfer of
“land/undivided share of land” which do not attract GST, the
value of such land/undivided share of land shall be deemed to be
1/3rd of the total amount charged for such supply, as provided in
Para 2 of the said Nfn. No:11/2017-CT ( R) dt: 28.06.2017.
This implies that GST on a Flat/House/Complex [for which a
part or total consideration is received prior to issue of a
completion/occupancy certificate or it‟s first occupancy,
whichever is earlier], shall be 2/3rd of the total consideration
charged for such supply (thus GST payable on a Flat/House/Complex would works out to be 12% of the total
consideration inclusive of the value of land/ undivided share of
land).

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