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.
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%
Thank you for the reply. What will be the HSN Code for above transaction
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
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.
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.
Hi,
- Effective rate is 12% (i.e. 18% of 2/3 rd value of flat).
- HSN code is 9954
Thanks
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.
Hi,
Effective rate is 12% (i.e. 18% of 2/3 rd value of flat).
HSN code is 9954. The SAC Code will be 995411
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%.
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%.
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Thank you
