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

RCM under GST not applicable for affordable housing projects under specific notifications; applies to other non-commercial projects. A query was raised regarding the applicability of Reverse Charge Mechanism (RCM) under GST to construction services, specifically questioning if RCM applies to those not availing benefits under the construction of affordable residential apartments in RREP or paying tax per entries (ie) and (if) of Notification No. 11/2017, amended by Notification No. 03/2019. The response clarified that RCM does not apply to assessees opting for these entries. However, it applies to other projects, excluding fully commercial ones, which are subject to the full tax rate with the availment of Input Tax Credit (ITC).