GST rate Clarification for Single Residence work

[Thevarkonda Suresh]

sir

My Query is my client (Registered with GST)is doing contract work for Construction of Single Residence construction work with Material and labour (ie old house will be demolished and new single residence will be built) Query what will be GST rate either 5% or 18% and also any Inputtaxes can be claimed from registered suppliers like supply of sand, bricks, cement, and Electrical and Plumbing items etc . Experts advice Please

AI Summary

GST Rate for Residential Construction: 18% with ITC Eligibility for Works Contract and Composite Supply Involving Demolition. A client, registered under GST, is conducting contract work for constructing a single residence, involving demolition of an old house and building a new one. The query seeks clarification on the applicable GST rate, either 5% or 18%, and the eligibility for claiming input taxes on materials like sand, bricks, cement, and electrical items. Responses indicate that the work is considered a works contract, subject to an 18% GST rate with eligibility for Input Tax Credit (ITC). Demolition is part of the composite supply, with the predominant supply being the works contract.