Treatment Under GST

[MUKESH SAXENA]

A Person is registered under GST for the Civil Work Contractor services.His main work is purchase the land in different different place in city/village. after purchasing land he build residential house by own amount after completion or incompletion condition of house he sale to consumer with Valid govt.registry. In registry he write area,Rooms,Toilet, Bathroom,etc.He does not receives amount of house in installment but some time receives some amount as advance or after sale of house. But he is not registered in Real Estate Regulatory Authority ACT.

My Query is :- 1- What will be treat this service either Builder or Civil Contractor under GST.

2- What will be apply tax rate on such service

3- will be deposit GST on received advance amount or not

4- can he claim ITC on Purchase building material

[Shilpi Jain]

Since the activity is not registered under RERA, he will not be a promoter.

1- What will be treat this service either Builder or Civil Contractor under GST. - it would be a works contract service

2- What will be apply tax rate on such service - 18% as per residual entry. 1/3rd deduction would be applicable

3- will be deposit GST on received advance amount or not - required to pay GST basis any milestones mentioned in agreement for payment by customer, if no milestones mentioned then basis the date of receipt or execution of sale deed whichever is earlier.

4- can he claim ITC on Purchase building material - yes.

[MUKESH SAXENA]

THANKS MADAM

AI Summary

Works contract service: GST applies with milestone-based advance taxation and claimable input tax credit on materials. Where a person buys land and constructs houses for sale without RERA registration, the activity is treated as a works contract service. The standard GST treatment for works contracts applies, including the one third deduction for valuation. GST on advances is payable according to agreed payment milestones or, if none, on the date of receipt or execution of the sale deed, whichever is earlier. Input tax credit on building materials is claimable subject to regular GST conditions.