pls confirm tax rate on construction flat
ommahadev 7 (136 Points)
07 January 2019
is there any gst on construction flat
ommahadev 7 (136 Points)
07 January 2019
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(174073 Points)
Replied 07 January 2019
No GST over constructed flat, having completion certificate. Otherwise, yes when purchased from building under construction.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(174073 Points)
Replied 07 January 2019
General category .... 12% GST with land cost inclusive. (or 18% exclusive of land cost.)
S ELAVARASI
(ACCOUNTANT)
(2975 Points)
Replied 07 January 2019
Dear Sir,
I have many more doubt about the above said details or constructions...
How to effect the GST to Construction actvities by Mason or Small Contractor...
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(174073 Points)
Replied 07 January 2019
Generally services are charged at 18% (provided supplier is registered).
Single residential units are exempted for pure labour. etc ...
S ELAVARASI
(ACCOUNTANT)
(2975 Points)
Replied 07 January 2019
Thank You for the reply... Once again i'm doubtful...
I give some details for the activity by the mason (as per my knowldege. Please understand the details)
A Mason or Contractor received a Order for construction of House (Apprx value Rs. 20L). Party give money to Mason account (May be it's received from Bank if House constructing through Bank Loan). Contractor bought all the items from suppliers and pay money through his bank account... Here
What are effect from GST view?
How will charge GST by the Contractor?
What is completion certificate and where will get it?
and etc...
Please give some details...
Please Sir...
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(174073 Points)
Replied 07 January 2019
The services provided by contractor is classified as 'works contract' under GST.
The contractor has to register under normal scheme, and take ITC of the GST paid over inputs including material and charge GST over bills raised as per completion stages of the work. Regular returns need to be filed.
Completion certificate is received from the competent authority who has sanctioned the plan, e.g. Municipality or town planning office, panchayat etc.
S ELAVARASI
(ACCOUNTANT)
(2975 Points)
Replied 07 January 2019
| Originally posted by : Dhirajlal Rambhia | ||
 |
No GST over constructed flat, having completion certificate. Otherwise, yes when purchased from building under construction. |  |
Please Sir.,
Can You explain this view with some details... Please
S ELAVARASI
(ACCOUNTANT)
(2975 Points)
Replied 07 January 2019
| Originally posted by : Dhirajlal Rambhia | ||
|
Generally services are charged at 18% (provided supplier is registered). Single residential units are exempted for pure labour. etc ... |
|
Single residential unit means only Single House like Bungalow or Can be take beniefit with 1st floor. One house in Ground and 1 floor...
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(174073 Points)
Replied 07 January 2019
If you go to purchase a flat/house property.......
There are mainly two options available......... New or Old (second owner)
In new constructed flats also there are two options available..... either the project is under-construction....... or ready to use apartments.
When you purchase ready to use (be it new or old, as said earlier), having received completion certificate; its exempted from levy of GST. Here you are required to pay lump sum amount at one or two installments, but no GST charged.
But if the project is under construction, or may get ready to occupy after a period of time (or completion certificate not received) you just book with agreement for sale, even pay installments as per completion of the project...,,, & ... it comes under GST ambit, as services received from builder, and so GST is levied at 12%. (unless under any awas yojana).
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(174073 Points)
Replied 07 January 2019
"Single residential unit means only Single House like Bungalow or Can be take beniefit with 1st floor. One house in Ground and 1 floor..."
A single unit is like bungalow, may have multiple floors; but having single ownership; suitable for single family.
S ELAVARASI
(ACCOUNTANT)
(2975 Points)
Replied 07 January 2019
CA Roopa Nayak
(Specialized in Indirect Taxes)
(6616 Points)
Replied 07 January 2019
GST is applicable on construction of flat done by developer for end customer by developer when agreement is entered with customer and payments recieved even partly prior to completion certificate
GST Tax rate is effective tax rate of 12%[including land value] and 18% excluding land value
Tax to be collected from customer and paid by developer
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(174073 Points)
Replied 08 January 2019
" How can charge gst for the 20l value house...?"
GST is not charged over each transaction value, but the 20 lakhs limit is for the contractor to get registered. Just think. if he has 2 or 3 such contracts, whether he has to get registered under GST or not? & when once registered, he has to charge GST for even 1 Rs. supply !!!
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