• GST on construction of house

Kindly let me know the gst on labour contract on construction of single house by contractor . is there is any difference in rate if he purchases materials on behalf of client
Asked 6 years ago in GST

Hi,

 

GST rate in both the case is 18%. However, the certain service provided under the pure labour contract is exempted.

Payal Chhajed
CA, Mumbai
5189 Answers
302 Consultations

Hi,

 

- Rate for labour contract would be 18% in both the cases. 

 

Thanks

Vivek Kumar Arora
CA, Delhi
5008 Answers
1134 Consultations

The rate of labour contract is 18% but if purchases the material on your name same would not be added in his bill and wont be again liable for GST or included in his labour bill.

 

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
4303 Answers
101 Consultations

Hi. 18% in both the cases.

Navya Tejas
CA, Bangalore
45 Answers

Yes. So if you taking a service for Constructing your own bunglow and all the things are purchased by you then no GST would be charged

Naman Maloo
CA, Jaipur
4303 Answers
101 Consultations

It is NIL but pure labour services otherwise 18%.

Vivek Kumar Arora
CA, Delhi
5008 Answers
1134 Consultations

Hello,

 

GST on pure labour contracts is Nil, otherwise 18%

If you also buy material on behalf of the client, it would be works contract, taxable at 18%.

 

I hope this answer satisfies your requirement.

 

 

Regards,

CA Hunny Badlani

 

Hunny Badlani
CA, Madhya Pradesh
2608 Answers
16 Consultations

Yes, if it is a pure labour contract, no GST would be levied.

Hunny Badlani
CA, Madhya Pradesh
2608 Answers
16 Consultations

Hi,

 

It is nil only for pure labour services.

Payal Chhajed
CA, Mumbai
5189 Answers
302 Consultations

Hello Sir,

 

As per GST Law 2017, there is no GST payable on Services by way of pure labour contracts of construction to a single residential unit otherwise than as a part of a residential complex. 


So the rate of GST payable on Services by way of pure labour contracts of construction to a single residential unit otherwise than as a part of a residential complex is nil rate.

Karishma Chhajer
CA, Jodhpur
2452 Answers
29 Consultations

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