Society is doing self redevelopment of their plot by demolishing their existing building. In such let me know about following GST related questions GST will be applicable for units constructed for existing society members? If GST is applicable on free sale units, what is GST% on sale consideration? GST payable on construction cost of self redevelopment project? Who will pay contractor or Society ? What is GST % payable on construction cost and when it is payable ?
- GST on construction cost will be payable the society. Builder will raise the invoice periodically and charge GST on the construction services. As the land belongs to the society, builder is providing construction services to the society. GST rate is 18%.
- There should be a proper agreement with the builder specifying the time limits for the phase wise construction. Invoice should be raised as per the construction plan.
For detailed discussion, you may have a phone consultation.
Thanks for replies to my queries What will be GST % on selling of the units. Can I compensate GST received from selling units during construction with GST already paid for construction if Socity has one GST no for the project
- You can only charge 5% from the customers. Construction services falls under the definition of works contracts in GST. You are not allowed to setoff it against GST liability.
Dear Sir,
Hope you are doing well !!
You need to charge GST@5% on selling of the units.
No, you can't set off the same.
It is advisable to take a phone consultation for detailed discussion.
Hi
1.Rate of GST will be 5% on sell of the unit.
2. No
1.Rate of GST will be 5% on sell of the units to the customers.
2. No, set off is not available.