GST ON CONSTRUCTION WORK IN PROGRESS SOLD TO ANOTHER FIRM

[Kalpesh Shah]

Respected Seniors,

My Querry is as follows :

Facts :

My client is a Partnership Firm having 4 Partners engaged in the business of Builders & Developers.

They have Started Construction of a Building and incurred expenses on Land, Labour, Material and other direct expenses. Project is affordable housing Project.

Now out of 4 Partners, 2 Partners are getting separated in between and taking over Land and Construction WIP on the date of Change in constitution by executing a Separate Agreements.

Query :

1. What will be the Rate of GST on Construction WIP Transferred ? Is it 18% or Some other rate being WIP of Affordable housing Project ?

2. What if they make Single Agreement of Take over of Land and Construction WIP, will Rate of GST Change ?

Need your Guidance on the above matter.

Thank you in Advance.

AI Summary

Clarification sought on GST rate for construction WIP transfer in partner separation; single agreement's impact questioned. A partnership firm in the construction business is undergoing a change in its constitution, with two partners separating and taking over land and construction work in progress (WIP) for an affordable housing project. The query seeks clarification on the applicable Goods and Services Tax (GST) rate for the transfer of construction WIP, questioning whether it is 18% or another rate specific to affordable housing projects. Additionally, the query asks if a single agreement for the takeover of land and construction WIP would affect the GST rate. The response refers to a notification regarding the transfer of a going concern.