Is GST applicable on construction of building?
Is GST applicable on construction of building?
GST at 12\% was applicable on ‘supply of real estate before completion i.e Purchased in the under-construction stage. ‘ A concessional rate of 8\% was applicable for units qualifying for Affordable Housing.
How is GST calculated under construction building?
Example: How to calculate GST on under-construction flat Suppose that an under-construction property worth Rs 100 is sold by a builder to a buyer. To calculate the GST on building, Rs 33 will be counted out as the land value and the GST on construction would apply only on the remaining Rs 77.
What is the GST for construction contractor?
GST Rate on Works Contract
| Description | HSN Code | GST rate |
|---|---|---|
| Works contract mostly involving earth work to government | 9954 | 5\% |
| Oil exploration works contract (construction) | 9954 | 12\% |
| Works contract by sub contractor to main contractor (construction) who in turn provides above services to the government | 9954 | 12\% |
What is GST on construction material?
GST rates on construction material
| Construction material | GST rate |
|---|---|
| Building stones | 5\% |
| Cement | 28\% |
| Iron and steel products | 18\% |
| Tiles (Earthen, roofing) | 5\% |
Can builder take GST on maintenance?
As per GST guidelines no GST up to Rs 7500/- pm on maintenance charges. The builder says ,its applicable for building having welfare association only. As per agreement, the builder will maintain the building for 5 years.
How GST affect construction industry?
Under GST, developers’ construction costs are significantly reduced as multiple taxes are subsumed and due to the availability of input tax credit. Also, reduction in cost of logistics will be an added benefit. Hence developers may see improvement in margins.
What is an under construction property?
New construction: Under construction projects offer you new construction. You are getting a property which is newly-constructed and has a long life. Buyers need not worry about repairing and other such things while moving into a new property. They can start living as soon as they get possession.