RCM APPLICABILITY TO CONSTRUCTION SERVICES ( (ie)& (if) of Notifiaction No. 03/2019-Central tax-(rate)

[VEMULA CHANDRASEKHAR]

Does RCM mandatorily applicable to all construction services even those who has not availed the benefit of construction of affordable residential apartments in RREP & who has not availed the benefit of paying tax as per (ie) & (if) of No.11/2017-Central Tax (Rate) amended vide Notification No. 03/2019 -Central Tax (rate)

[KUNAL DESAI]

RCM is not applicable to the assessee who is opting for entry (ie) & (if). However, it is applicable to all other projects except fully commercial projects which is continue to be leviable at full rate along with availment of ITC.

AI Summary

Reverse Charge Mechanism: not applicable to suppliers opting for specified affordable housing entries; applies to other construction services.
Suppliers who opt for the specified affordable residential housing entry are not subject to the reverse charge mechanism for construction services. RCM applies to construction projects that do not fall under that optional affordable housing entry. Fully commercial projects are excluded from RCM and remain leviable at the full rate while allowing availment of input tax credit.