GST on construction contract (builders)
My contractor quoted 18% . Contract signed Feb.19. Possession Not taken yet. How will the GST under old and new work for this ? 5%, 12% or 18%? will it be proportionate as and when the construction progressed? or at the time completion and handing over? more
I find anomaly with well know Bangalore builder claiming GST from buyers , without raising proper performance bills for each transaction. They just claim payment on statement of accounts which is not correct in my opinion. I have sought clarifications from GST authority. As a buyer it is our prerogative to know the tax paid reaches the government. more
If the project is an ongoing project as on 01-04-19, and the Builder has not exercised the option of availing the lesser rate of GST, the applicable GST rate is 18%. This is applicable for all payments made to the builder and the Builder has to provide a GST Invoice for every payment received.
In case the Builder exercises the option of availing the lower rate of GST , the applicable rate is 1 % without availing ITC for properties having sale price of less than Rs. 45 lakhs (affordable housing) and 5% without availing ITC for properties having sale price of mire than Rs.45 lakhs. more
In my opinion the prevailing rate at the time of raising Final Bill along with Handing over and taking over possession of property the sale is complete and will attract GST more