Is the construction service provided by builder to prospective buyer of flat booking, as "works contract service" ?
as there is also transfer of property in goods is involved (note: consideration received before completion certificates )
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Works contract service
Replies (10)
Yes in terms of entry 5(b) of schedule II to the Act.
it is liable to GST but shall it be classified under "works contract service "?
You can classify under HSN 9954- Construction Service
yes but why we can't classify it under *works contract service* as in this case property in goods is also transfered.
but immovable property is not a good.
in the def of good only movable items are included.
in the def of good only movable items are included.
Yes i agree but there is many goods which transferred during such construction service such as cement,stones,tmt bar pipes etc..so why can't we classify it under "works contract service"?
i think that if materials are provided by the recipient to the supplier and the supplier only does the construction part then it will not be considered as a works contract and treated as a service as per sch 2(5)(b)
where both material and construction service is provided by the contractor then it shall be a works contract.
even though in gst regime..in both the situations it is a supply of service
even though in gst regime..in both the situations it is a supply of service
Do you think as the correct answer?
When there is a specific classification the same shall be preferred over a generic classification. In the present case works contract is general and construction service is more specific. Hence it shall be preferred over works contract service
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