• GST slab rate for builder

Hi All!
It’s great pleasure writing here and taking opinion on my GST queries.
What is the slab rate of GST for Builder (firm)for constructing residential house with goods and service and selling.
Note: builder and buyer is one person. Firm has 2 partners.
Waiting for your reply.
Asked 2 years ago in GST

Hi,

Effective GST rate on construction of residential units is 12%.

Basically rate is 18%. However, there is no GST on land value and 1/3 of the total value is deemed to be land value. Hence, there is no GST in 1/3 portion which makes effective GST rate as 12%

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

Dear Sir,

Hope you are doing well !

The applicable GST rate for under construction flats, properties or commercial properties in land or undivided share of land is currently at 12% with full Input Tax Credit (ITC).

The actual GST rate for under construction flats, properties or commercial properties is 18%. However, 1/3 of 18% is deemed as the value of land or undivided share of land supplied to the buyer of the property.

Thanks & Regards,

Payal Chhajed

Payal Chhajed
CA, Mumbai
4896 Answers
91 Consultations

5.0 on 5.0

The SAC code (not HSN code) construction services of buildings is as under:

SAC Code 995411: Construction services of single dwelling or multi dwelling or multi-storied residential buildings.

Payal Chhajed
CA, Mumbai
4896 Answers
91 Consultations

5.0 on 5.0

It should be 995411.

However, I am giving below all other relevant sac codes:

SAC Code 995411: Construction services of single dwelling or multi dwelling or multi-storied residential buildings.

SAC Code 995412: Construction services of other residential buildings such as old age homes, homeless shelters, hostels etc.

SAC Code 995413 – Construction services of industrial buildings such as buildings used for production activities (used for assembly line activities), workshops, storage buildings and other similar industrial buildings.

SAC Code 995414 – Construction services of commercial buildings such as office buildings, exhibition & marriage halls, malls, hotels, restaurants, airports, rail or road terminals, parking garages, petrol and service stations, theatres and other similar buildings.

SAC Code 995415 – Construction services of other non-residential buildings such as educational institutions, hospitals, clinics including vertinary clinics, religious establishments, courts, prisons, museums and other similar buildings.

SAC Code 995416 – Construction Services of other buildings.

SAC Code 995419 – Services involving Repair, alterations, additions, replacements, renovation, maintenance or remodelling of the buildings covered above.

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

Hi,

- Effective rate is 12% (i.e. 18% of 2/3 rd value of flat).

- HSN code is 9954

Thanks

Vivek Kumar Arora
CA, Delhi
3800 Answers
242 Consultations

5.0 on 5.0

Hi,

The Effective rate is 12%.

The SAC Code will be 995411: Construction services of single dwelling or multi dwelling or multi-storied residential buildings.

Regards,

Nikhil.

Nikhil Khanna
CA, Mumbai
1428 Answers
19 Consultations

4.8 on 5.0

Hi,

Effective rate is 12% (i.e. 18% of 2/3 rd value of flat).

Karishma Chhajer
CA, Jodhpur
2272 Answers
15 Consultations

5.0 on 5.0

HSN code is 9954. The SAC Code will be 995411

Karishma Chhajer
CA, Jodhpur
2272 Answers
15 Consultations

5.0 on 5.0

Hi

GST rate for construction services is 18%. However, since there is abatement of 1/3 portion for land value, effective GST rate becomes 12%.

Lakshita Bhandari
CA, Mumbai
5245 Answers
351 Consultations

5.0 on 5.0

Since you are constructing residential building the effective rate of GST would be 12% (i.e. 18% less 1/3rd is considered as value of land and so no GST on same)

And SAC Code 995411: Construction services of single dwelling or multi dwelling or multi-storied residential buildings.

However if you are developing a project of affordable housing effective rate would be 8%.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo
CA, Jaipur
3668 Answers
40 Consultations

5.0 on 5.0

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