A trust is constructing 100 independent houses to be given to people free of cost. The ownership of land as well as houses will remain with the trust. The allottees will be able to stay free of cost at the houses.
The trust has given the construction to a contractor .
In this connection will the contractor get any exemption ?
Can the contractor avail lower GST rates available for Affordable Housing Project ?
Contractor's Services on Trust's Housing Project Not Eligible for GST Exemption or Lower Rates Due to Current Regulations. A trust is constructing 100 independent houses to be provided free of cost, retaining ownership of the land and houses. A contractor is handling the construction. The discussion focuses on whether the contractor can receive GST exemptions or lower rates applicable to Affordable Housing Projects. One response clarifies that there is no concessional GST rate for contractors under current regulations, and the project does not qualify for exemptions. Another response emphasizes that the contractor's services are taxable due to the consideration between the contractor and the trust, and no exemption applies despite the absence of consideration between the trust and allottees. (AI Summary)
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